How big is the decentralized finance market?
The Global Decentralized Finance Market Size is valued at 20.22 billion in 2023 and is predicted to reach 398.77 billion by the year 2031 at a 45.36% CAGR during the forecast period for 2024-2031. Decentralized Finance platforms were employed to boost productivity, contributing to the industry's success.
The global decentralized finance market is expected to grow at a compound annual growth rate of 46.0% from 2023 to 2030 to reach USD 231.19 billion by 2030.
Revenue in the DeFi market is projected to reach US$26,170.0m in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.07% resulting in a projected total amount of US$37,040.0m by 2028. The average revenue per user in the DeFi market amounts to US$1,378.0 in 2024.
The Decentralized Finance (DeFi) market cap today is $89.70B, which reflects a -0.01% daily change.
Due to the wide variety of derivatives available, the value of the derivatives market is estimated at anywhere from $15 trillion to $1 quadrillion. The International Swaps and Derivatives Association is in charge of creating legal guidelines for traditional derivatives.
Industry experts and media outlets have begun to report that DeFi may ākill banksā or at least reshape the financial industry as we know it. Almost $90 billion has already been deposited into Ethereum-based DeFi protocols. Some outlets are also reporting that DeFi's growth on the Ethereum blockchain is up 780% in 2021.
10 Years of Decentralizing the Future
However, DeFi's "future of finance" narrative was soon knocked over as the wider crypto market succumbed to a bearish cycle in 2022.
This is the world of Decentralized Finance, or DeFi, a revolutionary concept that is poised to reshape the fintech industry. By leveraging blockchain technology and cryptocurrencies, DeFi offers a new way of conducting financial transactions, from loans to insurance, all transacted directly between individuals.
āWe expect a big bang DeFi recovery and the investor narrative to come back as the future of blockchain finance,ā analysts Gautam Chhugani and Mahika Sapra wrote. Bernstein notes that six out of the top 10 revenue-generating protocols are DeFI applications. These are Uniswap, Aave, Maker, GMX, Synthetix and Sushi.
Meanwhile, DeFi leverages the power of Blockchain's transparency and decentralization to eliminate these intermediaries. Specifically: Governments or banks (CeFi) will be replaced by decentralized blockchains. CeFi assets will be replaced by tokens located in the Blockchain ecosystem and they are decentralized.
How big is DeFi today?
DeFi or Decentralized Finance refers to financial services that are built on top of distributed networks with no central intermediaries. DeFi crypto market cap for today is $90,552,190,415.28 with a total trading volume of $4,264,504,902.96 in the last 24 hours.
GMX (GMX) is the largest DeFi derivatives protocol by TVL. Ethereum is the main blockchain for DeFi, making ETH a key asset.
The future of Decentralized Finance (DeFi) is full of promise and potential. With platforms like Crypto Dispensers leading the way, we are likely to see continued growth and innovation in the sector. While challenges remain, the benefits of DeFi ā transparency, accessibility, and efficiency ā cannot be ignored.
| DeFi platforms | Transaction volume | Total Value Locked (TVL) |
|---|---|---|
| Aave (AAVE) | $218.22M | $5.49B |
| Uniswap (UNI) | $167.35M | $3.31B |
| Curve (CRV) | $64.64M | $1.92B |
| Lido (LDO) | $108.39M | $16.36B |
Lido (LDO)
Lido is the largest liquid staking platform, with over $28 billion worth of ETH locked with it. It is also the largest DeFi project, accounting for a third of the entire sector. Lido is the go-to platform for staking ether.
Today's price of DEFI is $0.11629, with a 24-hour trading volume of $406.09K. DEFI is +2.73% in the last 24 hours, with a circulating supply of 174.22M DEFI coins and a maximum supply of 1.00B DEFI coins. DEFI ranks 1092 by market cap.
Utilising blockchain and smart contracts, DeFi comes with the promise to resolve some of the key issues with existing finance such as high transaction fees, long processing times, and financial exclusion, and could even pose an existential threat to traditional finance institutions such as banks and credit card issuers ...
DeFi's vulnerabilities are severe because of high leverage, liquidity mismatches, built-in interconnectedness and the lack of shock-absorbing capacity.
Without a comprehensive understanding of the mechanisms underlying DeFi, users are susceptible to making errors, which could lead to substantial financial losses. Another major disadvantage of DeFi is the high number of risks associated with it.
Faulty smart contracts are among the most common risks of DeFi. Malicious actors eager to steal users' funds can exploit smart contracts that have weak coding. Most decentralized exchanges enable trading through the use of liquidity pools. These pools generally lock two cryptocurrencies in a smart contract.
Is DeFi high risk?
Liquidity risk in DeFi is greatly affected by the concentration of deposits in liquidity pools. High risk arises when few large depositors hold most assets in a pool, as their potential large withdrawals can exhaust liquidity.
DeFi is a subset of fintech, but as time passes, it's an increasingly large subset. Find out how decentralized finance interacts with fintech.
Is DeFi still a worthy investment in 2021? Judging by the fact that it's still growing strong and that new protocols are popping out from all directions, the answer is definitely yes! However, you need to manage the risks.
Decentralized finance (DeFi) is an emerging financial technology that challenges the current centralized banking system. DeFi attempts to eliminate the fees banks and other financial service companies charge while promoting peer-to-peer transactions.
DeFi projects can be profitable, but they also come with risks. It's crucial to thoroughly research and understand each project before investing. Some popular DeFi projects include Aave, Uniswap, and Compound. However, the crypto market is volatile, so consider your risk tolerance and investment goals before diving in.
