Summary
DeFi has experienced a significant capital inflow 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 provision.
Introduction
The Binance Research team’s analysis, “Breakthrough DeFi Markets,” delves into the current state and future potential of the decentralized finance (DeFi) industry. Noteworthy patterns, cutting-edge protocols, and promising opportunities within various DeFi sectors are highlighted in the report.
Main Points
In 2024, the yield markets have expanded by 148.6% to US$9.1 billion in TVL, with Pendle leading the charge in putting interest rate derivatives on-chain. Stablecoins’ circulation market capitalization reached US$161.1 billion, with Ethena emerging as the fifth-largest stablecoin by leveraging a capital-efficient yield-bearing model. Money markets have seen a 47.2% rise in on-chain TVL, with innovations like MetaMorpho and Morpho Blue attracting billions in deposits by blending efficiency and flexibility.
Prediction markets have hit a record high with a TVL of US$55.1 million, driven by events like the US elections. On-chain derivatives activity has surged, with daily volumes increasing to US$5.4 billion. The rise in competition and expansion onto non-EVM blockchains highlight 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. The diversification of markets and the development of new financial primitives are crucial for DeFi to continue growing and reaching high revenue projections. The industry is expected to evolve further, shaping a more concentrated market structure with innovative strategies as it progresses.