CoinGecko analysts: 7 main trends in the DeFi sector
Date: 2024-06-20 Author: Henry Casey Categories: BUSINESS
Decentralized finance (DeFi) continues to be one of the fastest growing segments in the world of cryptocurrencies and blockchain technologies. CoinGecko analysts have identified seven key trends that will determine the development of this industry in 2024. Since its inception in 2020, DeFi has been gaining attention for its alternative approach to financial services, cutting out intermediaries and providing direct services based on blockchain technology.
Key Trends in DeFi
1. Return of the total locked value (TVL)
At the beginning of 2024, DeFi continues to show dynamic growth after a significant decline in TVL to $36.59 billion in October 2023. TVL currently stands at $91.76 billion, signaling renewed interest in the sector and increased confidence in decentralized financial solutions.
2. Perpetual liquidity pools (LP)
Growing interest in perpetual LP pools highlights the importance of providing real returns and resiliency in the face of cryptocurrency market volatility. This approach allows users to actively participate in liquidity processes without time constraints.
3. Intent-based architectures
Startups offering intent-based architectures are demonstrating a new level of automation and personalization of financial transactions in DeFi. These solutions allow users to specify desired outcomes without having to drill down into each transaction.
4. Incentivize participation through points and giveaways
Projects that offer points and airdrops actively encourage user participation and increase liquidity in the DeFi ecosystem. This approach promotes the creation of active and engaged communities around various platforms and protocols.
5. Liquid betting and re-staking sector
Liquid staking and re-staking mechanisms allow stakers to effectively manage their assets while receiving a stable income. These instruments are becoming increasingly popular among users looking to diversify their investment strategies.
6. Cross-chain connection and tokenization of real assets (RWA)
Products that provide cross-chain connectivity and tokenization of real assets play an important role in improving interoperability and increasing liquidity between different blockchains. This opens up new opportunities for digitalization and efficient management of physical assets based on DeFi technologies.
7. Development in the Bitcoin network and forecast markets
The development of DeFi on the Bitcoin network, aimed at removing previous restrictions, and the growth of prediction markets provide users with new tools for trading and speculating based on predictions of future events.
CoinGecko analysts emphasized that DeFi remains a key driver of innovation in the world of financial technology. The seven trends highlighted reflect the rapid development of this industry and its potential to change traditional financial relationships. Investors and market participants can use these directions to navigate the dynamic and competitive DeFi landscape in 2024.
