TVL DeFi Sector Growth by 75% in 2024: Binance Report
Date: 2024-05-28 Author: Oliver Abernathy Categories: BUSINESS
The analytics arm of crypto exchange Binance, known as Binance Research, has released a fresh report on the state of decentralized finance (DeFi) in 2024. According to the study, the DeFi sector has shown impressive growth, indicating a significant increase in interest and investment in this area. In particular, the total value locked (TVL) in DeFi increased by 75%, reaching $94.9 billion.
Development of the Derivatives Market
The derivatives market in the DeFi sector has seen significant growth, rising from $1.8 billion to $5.4 billion. This growth is due to competition between new market entrants such as Hyperliquid, Aevo and RabbitX, as well as a recovery in volumes from established players such as dYdX and GMX.
Yield Market Success
One of the fastest-growing areas in DeFi is the yield market, with TVL increasing by 148.6% to $9.1 billion. Previously, this sector was relatively underdeveloped and explored, but in 2024 it took a key role in the development of traditional finance (TradFi ). The Pendle protocol has led the way in this segment by offering a variety of solutions without relying on a single ecosystem or revenue stream.
Growth of Money Markets
Money markets, which include lending and borrowing, also experienced significant growth. Total value locked in the sector increased by 47.2% to more than $32.7 billion. Aave and Compound Finance have emerged as key players in the space, while modular products such as Morpho Blue and MetaMorpho have attracted significant deposits thanks to flexible lending terms.
Market Success Forecasting
The forecasting market reached record levels, with a TVL of $55.1 million. The Polymarket platform especially stood out, whose figures grew from $6.1 million in 2023 to $42 million in 2024. A significant contribution to this growth was made by activity related to the upcoming elections in the United States. In particular, Polymarket users predicted Donald Trump's victory in the presidential election with a probability of 55%, while Joe Biden's chances were estimated at 38%.
A report from Binance Research highlights that a strong market rally and significant capital inflows into DeFi have fueled its meteoric growth in 2024. Despite competitive pressures from new market entrants and the rise of spot exchange-traded funds (ETFs), the DeFi sector continues to deliver impressive results. This growth indicates that DeFi is becoming an integral part of the global financial landscape, attracting more investors and users.
A look into the future
The presented data and analysis indicate high prospects for further growth and development of DeFi. Given current trends and increasing interest from institutional investors, we can expect DeFi to continue to expand its reach and attract new capital by offering increasingly innovative and convenient financial products.
