This report by Bybit covers the current state of decentralized finance (DeFi), highlighting significant changes in the sector and future trends.
Institutional Interest in DeFi
There has been an increase in institutional investments in DeFi due to regulatory clarity following the GENIUS Act and the IPO of Circle. Interest in lending and tokenized assets has risen, linked to the mainstreaming of stablecoins. Total DeFi lending deposits have reached $67.8 billion across platforms like Aave, Morpho, and Maple Finance. Real asset platforms like Securitize, Ondo Finance, and Franklin Templeton are creating yield opportunities backed by US Treasuries, bridging crypto investment with traditional finance.
DEX Competing with Centralized Players
Decentralized exchanges (DEXs) are proving their competitiveness against centralized exchanges (CEXs), boasting a trading volume of $1.27 trillion in perpetual futures this year. This has incentivized hybrid platforms like Byreal, which synergize CEX liquidity with DeFi transparency.
Diverse Directions in DeFi Growth
While the RWA and DEX sectors flourish, AI-related DeFi (DeFAI) tokens are experiencing declining interest, and liquid staking growth is limited by token volatility.
The Bybit report confirms that DeFi is transitioning toward utility-focused applications. With the acceleration of institutional RWA adoption and the emergence of hybrid solutions, DeFi is positioning itself as an on-chain financial infrastructure combining the benefits of centralized and decentralized approaches.
