Changes in Ethereum's market cap percentage can significantly impact DeFi projects. As Ethereum is the primary blockchain for most DeFi applications, a rising market cap often increases demand for ETH, boosting liquidity and user activity in DeFi ecosystems. This can enhance project growth and attract more investment. Conversely, a declining market cap may signal reduced confidence, leading to lower ETH prices, higher transaction costs, and decreased DeFi participation. Since DeFi projects rely on Ethereum's infrastructure, scalability issues or network congestion tied to market shifts can also hinder performance. Ultimately, Ethereum's market dominance directly influences DeFi's accessibility, cost-efficiency, and adoption rates.