Binance Research Highlights Capital Surge in Crypto Markets, DeFi Leads the Way

The influx of capital into the cryptocurrency market has seen double-digit growth since the beginning of the year, as highlighted by Binance Research, the analytical division of the Binance digital assets exchange.

Binance Research indicates a strong revival in market activity, particularly benefiting the decentralized finance (DeFi) sector. “The resurgence of markets is here,” the report states, underscoring the substantial capital flow into DeFi.

“Notably, the broad market rally has been accompanied by a substantial influx of capital into DeFi, pushing the total value locked to US$94.9 billion this year, up from US$54.2 billion at the start of the year, reflecting a strong 75.1% year-to-date rebound.”

Despite this impressive growth, Binance Research notes that DeFi’s market valuation has not yet matched the increase in on-chain liquidity.

Diverse Growth Across DeFi Sub-Sectors

According to Binance Research, various DeFi sub-sectors have experienced significant capital inflows. “Gone are the days when only sub-sectors like Decentralized Exchanges (‘DEXes’) were the primary drivers of DeFi markets. This diversification is fundamentally crucial if DeFi is to meet its ambitious revenue forecasts, such as the projection of US$231.2 billion by 2030.”

The report highlights that achieving these forecasts requires the development of diverse markets to unlock new financial primitives and maximize user value in DeFi.

Among the DeFi sub-sectors, the liquid restaking sector recorded the largest growth in total value locked, followed by the yield market. The only exception was the Collateralized Debt Position (CDP) sub-sector, which saw a slight decrease in total value locked.