Wondering what the next frontiers for DeFi are?
Our new #Binance report covers emerging trends in DeFi markets, from new types of derivatives and yield paradigms to modular lending designs, prediction markets, and more.
Read the full report here.
Highlights:
2024 has seen a substantial influx of capital into DeFi, driving the total value locked (“TVL”) up 75.1% year-to-date (“YTD”) to US$94.9B, from US$54.2B at the year's start. This boost has benefited nearly every DeFi sector, across both major and niche markets, leading to the emergence of differentiated markets that are making previously inaccessible financial primitives available on-chain.After a 148.6% increase to US$9.1B this year, Yield is now the 8th largest DeFi market by TVL. Leading the push to bring interest rate derivatives on-chain, Pendle has seen a remarkable 1962% growth YTD to US$4.8B, benefitting from the rise of yield-bearing assets and increased rate volatility spurred by liquid restaking and speculative point systems.The circulating market cap of stablecoins has reached US$161.1B this year, the highest in nearly two years. Capitalizing on a market gap for a more capital efficient yield-bearing stablecoin, Ethena has surged 2730.4% to a US$2.4B market cap, becoming the 5th largest stablecoin. Its unique delta-neutral strategy, combining staked ETH and perpetual futures funding rates, has provided a distinct advantage.Money markets have grown this year, with on-chain TVL up 47.2% to US$32.7B. The demand for more flexible lending products, such as those that can incorporate long-tail assets as collateral, has fueled interest in modular lending. Morpho has responded with Morpho Blue and MetaMorpho, which combine the simplicity and pooled liquidity of traditional lending with the efficiency and flexibility of isolated markets, attracting billions in deposits in just a few months.Prediction markets reached a new peak this cycle, with TVL hitting a record US$55.1M after a 57.7% rise YTD. Historically thriving on political events, and with U.S. elections in sight, Polymarket has seen a significant resurgence, with average monthly volumes soaring from US$6.1M in 2023 to US$42.0M in 2024.The market upswing has revitalized on-chain derivatives activity, propelling average daily volumes from US$1.8B last year to US$5.4B this year. Hyperliquid has capitalized on this trend to increase its market share to 18.9%, making it the second largest by trading volume, trailing only dYdX. Its edge stems from being a high-performance, fully on-chain perps DEX on its own L1, providing CEX-like experiences and unique products like pre-market offerings and exotic pairs.
Read the full report here.