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25 June 2024
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Binance Research Says Resurgence of Capital Arriving Back to Crypto Markets – Specifically One Sector

The level of capital flowing into the crypto space has grown by double digits since the start of the year, according to the research arm of Binance digital assets exchange.

In a new report, Binance Research says that the “resurgence of markets is here” with decentralized finance (DeFi) being one of the major beneficiaries.

“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.”

The research arm of Binance, however, says that the market valuation of DeFi has yet to experience a rise that is commensurate with the increase in on-chain liquidity.

According to Binance Research, almost all DeFi sub-sectors have witnessed a notable growth in 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. Achieving this requires the development of a diverse array of markets capable of unlocking new financial primitives, enabling users to maximize the value they derive from DeFi.”

The liquid restaking DeFi sub-sector recorded the largest percentage growth in total value locked followed by the yield market. Only the Collateralized Debt Position (CDP) DeFi sub-sector saw a slight decrease in the total value locked.

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