According to the research division of digital asset exchange Binance, the level of capital flowing into the cryptocurrency space has increased by double digits since the beginning of the year.
A “market revival is upon us” with decentralized finance (DeFi) set to be a major beneficiary, Binance Research says in a new report.
“Notably, the broader market rally has been accompanied by heavy inflows into DeFi, with total value locked increasing from $54.2 billion at the start of the year to $94.9 billion this year, reflecting a strong recovery of 75.1% year-to-date.”
However, Binance's research division noted that DeFi market valuations have yet to experience a commensurate increase in on-chain liquidity.
According to Binance Research, nearly all DeFi subsectors have seen a notable increase in inflows.
“Gone are the days when only subsectors like decentralized exchanges (DEXs) were the main driver of the DeFi market. This diversification is fundamentally important if DeFi is to achieve its ambitious revenue forecast of $231.2 billion by 2030. Achieving this requires the development of a diverse marketplace that can unlock new financial primitives and maximize the value users get from DeFi.”
The liquidity restak DeFi subsector recorded the largest percentage growth in total locked value, followed by the yield market. Only the collateralized debt positions (CDPs) DeFi subsector saw a slight decrease in total locked value.
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