DeFi
Title: “Unveiling the Booming Trends and Future Innovations of DeFi in 2024”
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DeFi Market Trends in 2024
Summary
DeFi saw a significant capital influx in 2024, leading to a 75.1% increase in total value locked (TVL) year-to-date, reaching US$94.9 billion. Differentiated markets have emerged, offering previously unavailable financial primitives through on-chain delivery.
Introduction
The Binance Research team’s analysis, “Breakthrough DeFi Markets,” delves into the current state and future potential of the decentralized finance (DeFi) industry. Remarkable models, cutting-edge protocols, and promising opportunities in various DeFi sectors are highlighted in the report.
Main points
In 2024, yield markets grew 148.6% to US$9.1 billion in TVL, with Pendle leading the interest rate derivatives on-chain. The circulating market capitalization of Stablecoins reached US$161.1 billion, with Ethena becoming the fifth largest stablecoin by leveraging a capital efficient return model. Money markets have seen a 47.2% increase in on-chain TVL, with innovations such as MetaMorpho and Morpho Blue attracting billions of deposits by combining efficiency and flexibility.
Prediction markets hit an all-time high with a TVL of $55.1 million, driven by events such as the US elections. On-chain derivatives activity has exploded, with daily volumes increasing to $5.4 billion. The rise in competition and expansion of non-EVM blockchains highlights the growth and maturity of the derivatives market within DeFi.
Conclusion
The influx of capital into DeFi markets in 2024 has led to significant advancements in the field. Market diversification and the development of new financial primitives are crucial for DeFi to continue growing and achieving high revenue projections. The industry is expected to continue to evolve, shaping a more concentrated market structure with innovative strategies as it progresses.