A new study reveals the global Decentralized Finance (DeFi) market is set to reach $48.02 billion by 2031. This represents significant growth from the current $22 billion. And implies the number of people who actually use DeFi products is going to grow by millions.
The market is projected to expand at 9% annualy from 2024 to 2031, not so many markets out there can boast such an impressive growth, especially in financial sector which is quite conservative and unwelcoming to novice users.
SkyQuest's analysis highlights key drivers of this growth. As you could guess, DeFi eliminates traditional financial intermediaries. That reduces costs associated with banking services, thus making those much more attractive to ordinary users, even those who do not posses any advanced financial skills. The DeFi technology offers improved accessibility and ease of use for everyone, that's cool finance for dummies, to put it simply.
The rise of eSports and gaming is boosting DeFi adoption. Developers increasingly use DeFi tokens for in-app purchases. Just take a look at Augur, a DeFi betting platform, that exemplifies this trend.
Blockchain technology dominated the market in 2022. It accounted for over 41% of global revenues. Blockchain enables decentralized, borderless, and transparent transactions.
Smart contracts are poised for significant growth. They form the foundation of DeFi protocols. Smart contracts can act as programmable assets with specific rules. They accelerate services like investment, credit, and insurance.
Data analytics led the application segment in 2022. It represented 18% of global revenue. DeFi protocols offer advantages in decision-making and risk management.
The payments segment is expected to grow rapidly, too. Peer-to-peer payments are a crucial use case for DeFi. Users can exchange cryptocurrencies securely without intermediaries, you don't need a bank anymore to execute your financial orders.
DeFi is reshaping traditional finance. It leverages blockchain technology to offer innovative solutions. The market's growth is driven by cryptocurrency adoption and blockchain proliferation.
DeFi applications are democratizing financial services. Users can borrow, lend, and trade without traditional intermediaries. Decentralized exchanges and yield farming programs are gaining traction.