Decentralized Finance Market

Global Decentralized Finance Market is valued at USD 11.78 Billion in 2021 and expected to reach USD 119.3 Billion by 2028 with a CAGR of 39.2% over the forecast period.

Global Decentralized Finance Market: Global Size, Trends, Competitive, And Historical & Forecast Analysis, 2022-2028: Increasing adoption of blockchain technology and reduction in the worldwide gap in financial inclusion are some of the major factors driving the growth of the Global Decentralized Finance Market.

Scope of Global Decentralized Finance Market

A new financial system called decentralized finance (DeFi) is built on safe distributed ledgers that are similar to the ones used by cryptocurrencies. The Securities and Exchange Commission (SEC) and Federal Reserve set the regulations for centralized financial institutions like brokerages and banks in the U.S., where customers go to directly access money and financial services. By giving people access to peer-to-peer digital trades, DeFi threatens this centralized financial system. DeFi reduces the usage of fees that banks and other financial institutions impose on customers. Anyone with a connection to the internet may use DeFi, and users can store money in a safe digital wallet and transfer money quickly. In the crypto-asset ecosystem, the bulk of DeFi apps mimic traditional payment system offers rather than introducing new financial products and services. The main difference is that DeFi provides services independently of centralized intermediaries.

Market observers have seen strategic alliances between key firms in the sector. To increase access to the DeFi platform and global banking solutions, for instance, Sheesha Finance and EQIFI teamed in May 2021. The collaboration is anticipated to alter DeFi as it offers a solitary system for borrowing, lending, and investing. EQIFI is powered by the EQIBank platform, which lets users apply for bank loans. Sheesha Finance, on the other hand, provides investors with easy access to DeFi by creating account credit, convertible assets, and debit cards. Businesses are working to improve the products they provide.

With the advent of blockchain technology, the COVID-19 pandemic outbreak has caused a revolution in a variety of businesses. The market's main driver during the outbreak was the need for automation and streamlining supply chain applications and corporate procedures. Loans on DeFi platforms have climbed more than seven times since March 2020 to USD 3.7 billion, according to the DeFi Pulse. Investors are looking for gains at a time when central banks across the globe have slashed interest rates to help economies that have been negatively impacted by the outbreak.

The global Decentralized Finance market is segmented based on the component, application, and region & country level. Based on components, the global Decentralized Finance market is segmented into blockchain technology, decentralized applications (dApps), and smart contracts. By application, the market is segmented into Compliance & Identity, Assets Tokenization, Payments, Marketplaces & Liquidity, Decentralized Exchanges, Data & Analytics, Stablecoins, Prediction Industry, and Others.

The regions covered in the global Decentralized Finance market report are North America, Europe, Asia-Pacific, Latin America, and the rest of the World. Based on country level, the market of global Decentralized Finance is sub divided into U.S., Mexico, Canada, U.K., France, Germany, China, Italy, India, Japan, Southeast Asia, Middle East Asia (Saudi Arabia, UAE, Egypt) GCC, Africa, etc.

Global Decentralized Finance Market Segmentation

By Components:

• blockchain technology
• decentralized applications (dApps)
• smart contracts

By Application:

• Compliance & Identity
• Assets Tokenization
• Payments
• Marketplaces & Liquidity
• Decentralized Exchanges
• Data & Analytics
• Stablecoins
• Prediction Industry
• Others

Key Players of Global Decentralized Finance Market

Some major key players for the global Decentralized Finance market report cover prominent players like

• Compound Labs
• MakerDAO
• Aave
• Uniswap
• SushiSwap
• Curve Finance
• Synthetix
• Balancer
• Bancor Network
• Badger DAO
• others.

News

Compound's Improved DeFi Lending Platform Aims for Scalability and Security

On August 26^th, 2022; Compound's decentralized finance (Defi) lending platform's most current version, Compound v3, is now accessible for end users. Due to the limited availability, fewer supported tokens will be available for borrowing and serving as collateral on the system.

Collaboration between Aave and Pocket Network to get on-chain data from several blockchain systems

On July 19^th, 2022; Aave and the Decentralized Web3 protocol Pocket Network have partnered. This collaboration aims to provide the business access to on-chain data from several blockchains using Pocket's distributed network of over 44,000 nodes. The collaboration will assist programmers in creating dApps powered by Aave and provide them instant access to trustworthy blockchain data via Pocket Network.

AAVE plans to release the GHO stablecoin with excessive collateral

On July 18^th, 2022; Aave launched the GHO stablecoin, which is overcollateralized. Customers will be able to borrow stablecoins from this product while also understanding the yield on their secured assets on Ave.

Increasing adoption of blockchain technology, growing Increasing adoption of blockchain technology, and reduction in the worldwide gap in financial inclusion are some of the major factors driving the growth of the Global Decentralized Finance Market Growth  

The benefits provided by DeFi technology suppliers are fostering the sector's expansion. The system removes the control that banks and other financial institutions have on money, financial products, and financial services. Additionally, it eliminates the service use fees that banks and other financial organizations apply. DeFi platforms are also expected to be used more often due to their accessibility, since they are open to be used by anybody with an internet connection. The DeFi platform offers the option to trade tokenized versions of assets like equities and mutual funds as well as the capacity to send money anywhere in the globe and keep it in cryptocurrency wallets.

As a consequence of the adoption of DeFi, the financial industry has undergone a substantial change that is one of the key drivers impacting market development (Decentralized Finance). The interaction between DeFi and decentralized platforms on the blockchain has drawn more attention during the last five years. DeFi's ability to cut out intermediaries from financial transactions has increased adoption. The insurance industry has seen the most impact from DeFi as a result of the conventional system's complicated procedures, paperwork, and auditing procedures.

Major companies introduce solutions that are anticipated to fuel the industry. For instance, Bancor debuted its third version, known as Bancor 3, in May 2022. The primary goal of this product is to provide a DeFi liquidity solution that will enable stable on-chain liquidity and sustained returns for all ecosystem participants. In addition, Balancer Labs launched Boosted Pools on DeFi protocol Aave in December 2021. This item is a well-liked lending and borrowing mechanism that would raise the yields on decentralized finance. Additionally, in June 2022, Balancer unveiled Optimism, an Ethereum Layer 2 scaling solution. This offering would grow DeFi liquidity while lowering gas prices. Due to Ethereum's difficulties, users of decentralized finance would face a high barrier to entry in the form of expensive fees.

Despite the fact that immutability is a vital need for the DeFi environment in order to provide assurance of security, transparency is one of the notable contributions made by DeFi specialists. Decentralization naturally leads to more transparency, and the distributed ledger on the blockchain network provides information on all transactions. The cryptographic tenets of the blockchain also ensure that data is only recorded when its veracity has been established. The advantages and disadvantages of DeFi show how users might gain from the applications' openness.

DeFi has grown in the absence of regulations and legislation. This also suggests that consumers may not have many choices available to them if a transaction goes awry. Furthermore, banks are required by law to hold a set portion of their capital in reserves in order to preserve stability and for clients to withdraw funds from their accounts anytime they need to. In DeFi, there are no analogous protections. While a blockchain may be almost impossible to alter, other DeFi components pose a serious risk of being hacked and leading to the loss or theft of money.

North America is Expected to Capture a Major Share in the Global Decentralized Finance Market

Geographically, North America is anticipated to lead the global market for decentralized finance over the anticipated time. The dominance is attributable to the existence of well-known competitors like Compound and Uniswap. Additionally, North America has one of the biggest cryptocurrency marketplaces in the world, which is positive for the uptake of DeFi systems. DeFi transactions made up 37% of all transactions in North America from July 2020 to June 2021, according to Chainalysis's 2021 Geography of Bitcoin Report, with users contributing over USD 276 billion in cryptocurrency to DeFi systems.

On the other hand, Asia Pacific is anticipated to see the maximum CAGR throughout the projection period. This may be ascribed to Asia's robust economic development and quick adoption of new technologies. In the Asia Pacific area, there are various examples of DeFi platforms and other businesses using blockchain technology. Huobi Global, a corporation that operates a digital asset market, introduced Ivy Blocks in June 2022. This new investment arm specializes in DeFi and Web3 initiatives. Industry participants' strategic actions like this support the growth of the region.

By Regional & Country Level

North America

• U.S
• Canada

Europe

• U.K.
• France
• Germany
• Italy

Asia Pacific

• China
• Japan
• India
• Southeast Asia

Latin America

• Brazil
• Mexico

Middle East and Africa

• GCC
• Africa
• Rest of Middle East and Africa

Report Analysis	Details
Historical data	2018 - 2021
Forecast Period	2021 - 2028
Market Size in 2021:	USD 11.78 Billion
Base year considered	2021
Forecast Period CAGR %:	39.2%
Market Size Expected in 2028:	USD 119.3 Billion
Tables, Charts & Figures:	175
Pages	300
Key Players/Companies	Compound Labs, Inc., MakerDAO, Aave, Uniswap, SushiSwap, Curve Finance, Synthetix, Balancer, Bancor Network, Badger DAO, and others.
Segments Covered	By Component, By Application, By End-User.
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, Africa, Rest of the Middle East and Africa