The global decentralized finance market size is expected to reach USD 125.1 billion by 2028, with the market growing at 42.8% CAGR during the forecast period

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Decentralized finance (DeFi) is a state-of-the-art approach to providing financial services that removes centralized intermediaries and does not depend on automated protocols. DeFi users are essentially a component of a peer-to-peer network based on a public blockchain and enabling automatic asset transfers.

New York, Oct. 25, 2022 (GLOBE NEWSWIRE) — announces the release of the report “Global Decentralized Finance Market Size, Share & Industry Trends Analysis Report By Component, By Application, By Regional Outlook and Forecast, 2022 – 2028” –

The majority of DeFi applications mimic the offerings of conventional payment systems within the crypto-asset ecosystem rather than offering new financial goods and services. The main distinction is the way DeFi offers services instead of depending on centralized intermediaries.

Due to the high level of revenue generation and its transfer to liquidity providers, there is a strong incentive for customers to engage DeFi. The number of people involved is crucial for generating the liquidity supply that supports DeFi protocols because it positively correlates with the money earned in DeFi. As a result, new users are encouraged to adopt protocols with significant revenue potential, which ultimately helps those protocols scale.

One of the major factors influencing the growth of the market is the significant change in the financial sector following the adoption of DeFi (decentralized finance). Over the past five years, interest in how DeFi and decentralized platforms interact on the blockchain has grown. DeFi’s ability to remove intermediaries from financial operations has broadened its adoption. DeFi has also had the greatest influence in the insurance industry, as the traditional system is plagued with convoluted processes, paperwork, and auditing systems.

COVID-19 Impact Analysis

With the advent of blockchain technology, the outbreak of the COVID-19 pandemic has caused a revolution in various businesses. The main market driver during the outbreak was the need to streamline and optimize supply chain applications and business procedures. Loans on DeFi platforms soared more than seven times. Once at a time when central banks around the world have lowered interest rates to help economies that have been negatively impacted by the pandemic, investors are looking for gains. Thus, the decentralized finance market would grow in the coming years as things get back on track in the post-pandemic era.

Market growth factor

Closing the Global Financial Inclusion Gap and Defi’s Immutability Advantage

The underlying value and influence of decentralized technologies is hugely significant, even though most of the attention and investment in them is currently driven by speculation. For example, basic financial services are often unavailable or substandard due to various issues including economic underdevelopment, poor infrastructure, regulatory issues, etc. Even in highly developed countries, a person’s socio-economic level affects both the quantity and quality of financial services they have access to. The creation and acceptance of open international financial services can help bridge the growing gap between financial inclusion and opportunity around the world.

Growing popularity of Defi due to its high level of transparency

Transparency is one of the notable contributions of DeFi experts, even though immutability is a crucial necessity for the DeFi environment to provide assurance of security. Better transparency is a natural byproduct of decentralization, and the distributed ledger contains details of all transactions made on the blockchain network. The cryptographic principles of blockchain also ensure that information is only documented when its legitimacy has been confirmed. The pros and cons of DeFi show how users can benefit from opening apps.

Market restraining factor

Hackers are a problem and there is no consumer protection

In the absence of laws and restrictions, DeFi has flourished. However, this also implies that users might not have many options if a transaction goes wrong. Additionally, in order to provide stability and allow customers to withdraw money from their account whenever they need it, banks are required by law to keep a specific percentage of their capital in reserves. There are no equivalent guarantees in DeFi. While a blockchain can be almost difficult to modify, other components of DeFi are at significant risk of being compromised, which could lead to money being stolen or lost.

Component Perspectives

On the basis of components, the decentralized finance market is segmented into Blockchain technology, decentralized applications (dApps) and smart contracts. The smart contracts segment has generated a promising revenue share in the decentralized finance market in 2021. DeFi protocols and applications are built on smart contracts. A smart contract can function as a custodian with predetermined guidelines as to who, when, and how those assets might be received.

Application Outlook

By application, the Decentralized Finance market is divided into Assets Tokenization, Compliance & Identity, Marketplaces & Liquidity, Payments, Data & Analytics, Decentralized Exchanges, Prediction Industry, Stablecoins and Others. The data and analytics segment acquired the maximum revenue share in the decentralized finance market in 2021. DeFi protocols offer significant benefits for data analytics and decision making. DeFi protocols help in risk management and create economic opportunity because they are open to network data and activity.

Regional outlook

Regionally, the decentralized finance market is analyzed across North America, Europe, Asia Pacific, and LAMEA. North America emerged as the top decentralized finance market region with the largest revenue share in 2021. This is attributed to the presence of well-known competitors like Compound and Uniswap. Additionally, North America has one of the largest cryptocurrency markets in the world, which is positive for the adoption of DeFi systems, which would create more opportunities for regional market players.

The market research report covers the analysis of major market players. Key companies profiled in the report are Aave, Balancer Labs, Compound Labs, Inc., Badger DAO, Bancor, SushiSwap (Yearn Finance), MakerDao, Synthetix, and Curve Finance.

Strategies deployed in the decentralized finance market

Aug-2022-August: Compound has released the latest version of its decentralized finance (DeFi) lending platform, Compound v3. The limited production would reduce the number of supported tokens, which could be borrowed and collateralized on the protocol.

July 2022: Aave introduced an oversized stablecoin called GHO. This product would allow customers to borrow the stablecoin while learning the performance of their Aave-locked assets.

Jul-2022: Aave has entered into a partnership with the Decentralized Web3 Pocket Network protocol. This partnership was intended to allow the company to use Pocket’s distributed network of over 44,000 nodes to access on-chain data from various blockchains. The partnership would help developers develop dApps powered by Aave, allowing them to access trusted blockchain data from Pocket Network on demand.

June 2022: Balancer introduced the Ethereum Layer 2 scaling solution, Optimism. This product would reduce gas costs and increase DeFi liquidity. Ethereum challenges would result in prohibitive fees, creating an extreme barrier to entry for decentralized finance users.

May-2022: Bancor released its v3, dubbed Bancor 3. This product would focus on DeFi liquidity solution to enable healthy on-chain liquidity and sustainable returns for every player in the ecosystem.

Dec-2021: Balancer Labs unveiled boosted pools on the DeFi Aave protocol. This product is a popular lending and borrowing protocol, which is said to improve decentralized finance returns.

Nov-2021: SushiSwap has formed a partnership with Telos, one of the most active blockchain platforms in the world. This partnership was intended to allow customers of both platforms to take advantage of the scalability, speed and security of Telos EVM against front running as well as trading crypto assets.

July 2021: Aave launches Aave Pro. This product would operate separate authorization pools of “whitelisted” customers, who have passed Know Your Customer (KYC) protocols.

Apr-2021: Badger DAO introduced Badger Bridge, a Bitcoin-to-Ethereum bridge. This bridge would allow Bitcoin (BTC) holders to bring BTC to Ethereum and deposit it into yield-bearing vaults, with just one click.

Scope of the study

Market Segments Covered in the Report:

By component

• Blockchain technology

• Decentralized applications (dApps)

• Smart contracts

By request

• Data analysis

• Decentralized exchanges

• Payments

• Stablecoins

• Market places and liquidity

• Compliance and identity

• Prediction industry

• Tokenization of assets

• Others

By geography

• North America

o United States

o Canada

o Mexico

o Rest of North America

• Europe

o Germany

o United Kingdom

o France

o Russia

o Spain

o Italy

o Rest of Europe

• Asia Pacific

o China

o Japan

o India

o South Korea

o Singapore

o Malaysia

o Rest of Asia-Pacific


o Brazil

o Argentina


o Saudi Arabia

o South Africa

o Nigeria

o Rest of the LAMEA

Profiled companies

• Aave

• Balancing laboratories

• Compound Labs, Inc.

• Badger DAO

• Banking

• SushiSwap (funding of the year)

• MakerDao

• Synthetix

• Financing curve

Unique offers

• Comprehensive coverage

• The largest number of tables and figures on the market

• Subscription-based model available

• Best price guaranteed

• Provided after-sales research support with 10% free customization
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