Decentralized Finance Global Market Report 2024

“Decentralized Finance Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on decentralized finance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for decentralized finance? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The decentralized finance market global report ” from The Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

Scope

Markets Covered:

• 1) By Component: Blockchain Technology; Decentralized Applications (dApps); Smart Contracts
• 2) By Application: Assets Tokenization; Compliance And Identity; Marketplaces And Liquidity; Payments; Data And Analytics; Decentralized Exchanges; Prediction Industry; Stablecoins; Other Applications
• Companies Mentioned: Compound Labs Inc.; MakerDAO; Aave Companies; Uniswap Labs; SushiSwap
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.

Executive Summary

Decentralized finance (DeFi) encompasses a class of financial systems and applications built upon blockchain technology. The primary objective of DeFi is to offer financial services that are open, transparent, and decentralized, eliminating the need for traditional intermediaries such as banks or financial institutions.

Key components integral to decentralized finance include blockchain technology, decentralized applications (apps), and smart contracts. Blockchain technology, at its core, is a decentralized and transparent digital ledger that securely records transactions across a network of computers. This technology finds application in various domains within decentralized finance, such as asset tokenization, compliance and identity verification, marketplaces and liquidity provision, payments, data and analytics, decentralized exchanges, the prediction industry, stablecoins, and more. These components collectively contribute to the creation of a financial ecosystem that operates with increased accessibility, transparency, and autonomy.

The decentralized finance market research report is one of a series of new reports from The Business Research Company that provides decentralized financial market statistics, including decentralized finance industry global market size, regional shares, competitors with a decentralized finance market share, detailed decentralized finance market segments, market trends and opportunities, and any further data you may need to thrive in the decentralized finance industry. This decentralized finance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The decentralized finance market size has grown exponentially in recent years. It will grow from $21.21 billion in 2023 to $30.17 billion in 2024 at a compound annual growth rate (CAGR) of 42.2%. The expansion observed during the historical period can be ascribed to several factors, including the heightened adoption of cryptocurrencies, the emergence of liquidity mining and yield farming practices, increased global accessibility to financial services, the prevalence of smart contract platforms, and the trend towards the tokenization of assets. These elements collectively contributed to the growth witnessed in the specified timeframe.

The decentralized finance market size is expected to see exponential growth in the next few years. It will grow to $123.61 billion in 2028 at a compound annual growth rate (CAGR) of 42.3%. The anticipated growth in the forecast period can be linked to several factors, including the implementation of scalability solutions, increased institutional participation, regulatory clarity in the industry, the development of user-friendly interfaces, the integration of decentralized identity solutions, and advancements in insurance and risk mitigation practices. Key trends expected during the forecast period encompass cross-chain integration, the incorporation of non-fungible tokens (NFTs) in decentralized finance (DeFi), the utilization of layer 2 scaling solutions, the growing dominance of decentralized exchanges (DEXs), and a continued focus on cross-chain integration. These trends collectively contribute to the projected expansion in the specified timeframe.

The ascent of e-sports and gaming is poised to drive the expansion of the decentralized finance (DeFi) market in the foreseeable future. In this context, 'rise' denotes the growing popularity and prominence of competitive video gaming (esports) and the broader gaming industry. DeFi platforms empower gamers to leverage in-game assets, such as virtual items or currencies, as collateral for borrowing or lending. Additionally, these platforms provide decentralized avenues for esports enthusiasts to engage in betting on their preferred teams or players through blockchain-based smart contracts. For instance, in October 2022, data from NewZoo BV, a Netherlands-based games market data company, revealed that the audience for live-streamed gaming approached nearly 810 million in 2021, with projections anticipating it to surpass 1.41 billion by 2025. Consequently, the surge in e-sports and gaming is a key driver behind the growth of the decentralized finance (DeFi) market.

The escalation in geopolitical tensions is anticipated to propel the decentralized finance (DeFi) market's growth moving forward. Geopolitical tensions, encompassing conflicts and disputes among nations or regions, undermine trust in traditional financial systems. This uncertainty prompts individuals to seek alternative solutions offered by the decentralized and borderless nature of DeFi platforms. Factors such as capital flight, currency depreciation, and hyperinflation in specific regions drive users toward decentralized cryptocurrencies and stablecoins within the DeFi ecosystem. For example, in March 2022, The Armed Conflict Location & Event Data Project (ACLED), a US-based non-profit organization, reported a 12% increase in political violence targeting civilians, with 37,185 events in 2021 compared to 33,331 in 2020. Similarly, civilian fatalities rose by 8%, reaching 38,658 in 2021 compared to 35,879 in 2020. Consequently, the surge in geopolitical tensions is a catalyst for the growth of the derivatives and commodities brokerage market within the decentralized finance (DeFi) sector.

Technological advancements emerge as a prominent trend gaining traction in the decentralized finance (DeFi) market, with major companies strategically adopting innovative technologies to maintain their market positions. For example, in January 2023, Bitget, a Seychelles-based cryptocurrency exchange platform, unveiled MegaSwap on its DeFi platform. MegaSwap is designed to streamline the trading and swapping of digital assets across over 10,000 cryptocurrencies on the DeFi platform. This introduction aims to provide users with a convenient and efficient means to trade and swap digital assets, offering access to a diverse array of cryptocurrencies for their trading requirements.

Noteworthy companies in the decentralized finance (DeFi) arena are actively developing new Web3 applications to establish a competitive advantage. Web3 represents the third era of the internet, characterized by decentralized protocols, blockchain technology, and a paradigm shift towards user ownership of data and digital assets. In August 2022, CoinDCX, an India-based crypto-enabled financial services company, launched the Okto DeFi wallet app to address Web3 challenges related to interoperability. Okto provides users with simplified and secure access to DeFi services, allowing them to access thousands of tokens from various decentralized exchanges (DEXs) across different blockchain networks. The wallet addresses interoperability challenges by offering a unified solution for all DeFi needs, facilitating the tracking of investments and transactions across diverse chains. Incorporating user-friendly navigation and innovative MPC technology for enhanced security, Okto supports multiple protocols and has integrated with Web3 chains such as Polygon, BSC, and Avalanche. Key features include easy usability, full user control over assets, absence of a single point of failure, compliance with industry standards, and the introduction of AI-based multi-factor authentication for secure self-custodial DeFi wallets.

In February 2023, Lukka Tech, a US-based institutional crypto asset data and data management provider, acquired Venato for an undisclosed amount. This strategic acquisition equips Lukka with an intelligent framework for tagging and identifying DeFi transactions, enhancing profit and loss tracking, and aggregating features for blockchain transactions. Venato, a US-based company specializing in web3 development and decentralized finance development, provides valuable services for tracking profit and loss, as well as searching and aggregating blockchain transactions. The acquisition positions Lukka to offer advanced risk processes and augment its existing data collection and reporting capabilities within the dynamic DeFi landscape.

Major companies operating in the decentralized finance market report are Compound Labs Inc., MakerDAO, Aave Companies, Uniswap Labs, SushiSwap, Curve Finance, Synthetix, Balancer Labs, Bancor Network, Badger DAO, Agave, KuCoin.com, Jeeves Consumer Services Pvt. Ltd., MoonPay Inc., Dapper Labs Inc., HYPR Corp., Zerion, Secret Key Labs Limited, Suffescom Solutions Inc., International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Chainlink Labs, Polkadot Network, Stellar Development Foundation, Terraform Labs, Polygon Technology, Solana Labs, Cosmos Hub, Cream Finance

North America was the largest region in the decentralized finance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global decentralized finance market during the forecast period. The regions covered in the decentralized finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the decentralized finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The decentralized finance market includes revenues earned by entities by decentralized lending and borrowing, yield farming and liquidity mining, decentralized insurance, decentralized identity, decentralized savings and investments, decentralized payment systems, and decentralized asset management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.