Binance Research Reports the Return of Capital to Crypto Markets, with a Specific Focus on One Sector
The crypto space has experienced a significant increase in capital inflows since the beginning of the year, according to research conducted by Binance Research, the research arm of Binance digital assets exchange.
In a recent report, Binance Research states that the market is experiencing a resurgence, with decentralized finance (DeFi) being one of the major beneficiaries.
The report highlights that there has been a substantial influx of capital into DeFi, leading to a total value locked of $94.9 billion this year, compared to $54.2 billion at the start of the year, reflecting a strong year-to-date rebound of 75.1%.
However, Binance Research notes that the market valuation of DeFi has not yet seen a proportional increase compared to the rise in on-chain liquidity.
According to the report, almost all sub-sectors of DeFi have witnessed significant growth in inflows.
The report states, “Gone are the days when only sub-sectors like Decentralized Exchanges (DEXes) were the primary drivers of DeFi markets. This diversification is crucial if DeFi is to meet its ambitious revenue forecasts, such as the projection of $231.2 billion by 2030. Achieving this requires the development of a wide range of markets capable of unlocking new financial primitives, enabling users to maximize the value they derive from DeFi.”
Among the sub-sectors, the liquid restaking DeFi sub-sector recorded the highest percentage growth in total value locked, followed by the yield market. The Collateralized Debt Position (CDP) DeFi sub-sector was the only one to see a slight decrease in total value locked.
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