Capital flowing into the cryptocurrency space has seen significant growth since the beginning of the year, according to a report by Binance Research, the research division of the Binance digital assets exchange. The report states that the resurgence of markets is evident, with decentralized finance (DeFi) being one of the major beneficiaries. The total value locked in DeFi has reached $94.9 billion this year, up from $54.2 billion at the start of the year, representing a strong year-to-date rebound of 75.1%.
However, Binance Research notes that the market valuation of DeFi has not yet experienced a proportional increase to the rise in on-chain liquidity. Despite this, almost all sub-sectors of DeFi have witnessed notable growth in inflows. The days when only sub-sectors like decentralized exchanges (DEXes) were the primary drivers of DeFi markets are gone. This diversification is crucial for DeFi to achieve its ambitious revenue forecasts, such as reaching $231.2 billion by 2030. To achieve this, a diverse range of markets capable of unlocking new financial opportunities must be developed, allowing users to maximize the value they derive from DeFi.
Among the DeFi sub-sectors, the liquid restaking sub-sector recorded the highest percentage growth in total value locked, followed by the yield market. The only sub-sector that saw a slight decrease in total value locked was the collateralized debt position (CDP) sub-sector.
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