jakiro
Author: web3.com Ventures Translation: Shan Ouba, Bitchain Vision
2023 DEFI Market
The decentralized financial pattern showed a significant toughness in 2023, laying a solid foundation for its expected growth in 2024.Despite the challenges of a bear market in the past year, the DEFI project has locked about $ 43 billion in value and shows great potential.Among them, specific tokens and projects are better than other tokens and projects, marking the key trends and innovation areas in the field of DEFI.
$ MKR and $ COMP have become the main driving force for this trend. Within a week after the development of major projects, $ COMP soared by 83%.This performance is closely related to the fundamentals of new projects, which illustrates the impact of strategic leadership and innovation on the value of tokens.In addition, the overall DEFI index consisting of the top 8 DEFI token in the market value has increased by 56%since mid -2023, and its performance is better than other sections such as Gamefi and Stake. This increase marks that these tokens have since September 2022 since September 2022.The best performance.Compared to ETH’s performance is better than ETH.
These cases show the vitality of the Defi industry in the past year and the ability to adapt to the bear market.In 2024, driven by the development of Layer2, the evolution of regulatory supervision, and increased institutional interest, the Defi pattern will usher in a new reform growth.
Layer 2 development
In 2024, with the arrival of Cankun’s upgrade and the deployment of EIP-4844, the Layer 2 market will increase significantly, and further reduction in transaction costs on the chain will increase transaction volume and capital activity.
The upcoming EIP-4844 is an important Ethereum improvement proposal, introducing the original Danksharding.This function aims to improve data availability and reduce aggregation costs.By increasing throughput and reducing costs, EIP-4844 is expected to make the DEFI application more scalability and efficiency.This improvement may lead to a wider use of the DEFI platform because they have become more user -friendly and can handle higher transactions at a lower cost.In addition, the improvement of scalability and efficiency provides opportunities for more complex financial products in DEFI.These include complex derivatives, real -time settlement, and seamless integration of real world assets through advanced tokenization processes.
The adoption of L2 solution is also the key to attract institutional investors and mainstream users, marking the key change of the Defi market trajectory.In essence, the development of Layer 2 in 2024 is the cornerstone of Defi development, which promotes its growth, versatility and a wider financial ecosystem.
Regulatory evolution
In the past year, the entire encryption industry has faced more and more supervision, especially the CEX industry.Exchanges such as Kraken, Coinbase, and Binance have been sued by SEC.At the same time, as a leader in the encrypted market, CZ’s resignation also shadowed the supervision of the crypto market in 2024.
The main trend of countries around the world is to gradually strengthen supervision, and the authorities have begun to realize that they need to balance between cryptocurrency innovation and investor protection and financial stability.The change of this position happened under the background of people’s increasingly concerned security, transparency and potential systemic risks related to the CEX platform.
For DEFI, the direction of supervision is more likely to involve more clear guidelines for the overall operation of the DEFI project, anti -money laundering compliance, and consumer protection measures.Optimistic, we may see the cooperation between regulators and Defi ecosystems to establish a framework for promoting innovation and ensuring market integrity.
The issuance of Bitcoin spot ETF has always been a topic of extensive speculation and expectations.If the regulatory agency continues to develop the understanding and method of cryptocurrency, we may see the Bitcoin ETF approved in 2024.This will marked an important milestone, which may lead to more institutional participation and mainstream acceptance of cryptocurrencies.However, this still depends on whether the regulatory environment is willing to accept such products, and balanced potential risks and its advantages provided by its market access and investor protection.
Institutional adoption
Although regulatory regulations are becoming more and more stringent, better compliance legal systems will also enable institutions to participate more in the cryptocurrency market and increase the use of DEFI.As the regulatory framework becomes clearer and more inclusive, institutions that previously hesitated due to the uncertainty of the law may become more confident to invest.In addition, the continuous development of the DEFI platform to provide enhanced security and risk management tools will make these platforms more attractive to institutions.
When investors with strong funds enter the DEFI field, they bring not only huge investments, but also put forward higher requirements for security, compliance, transparency, etc.The influx of institutions will drive innovation and development in the DEFI field, resulting in more complex financial products and services that meet these high standards.
The growth of institutional adoption rate in 2024 may significantly increase the TVL of the DEFI market.At the same time, such growth will also increase the depth of the DEFI industry, because such growth involves the professional traditional financial market knowledge brought by institutional participants and their responsibilities to traditional investors.Their participation may lead to more stable and mature Defi markets, and may attract more participants in traditional financial fields.
It is foreseeable that the cooperation between supervision government and traditional institutional participants will have a positive role in promoting the DeFi market.All in all, 2024 will be another critical period of Defi after Defi Summer, marking the transformation of the entire market to a more integrated, stable and mature decentralized financial ecosystem.
in conclusion
In summary, the DEFI market in 2023 showed outstanding elasticity and adaptability in the dynamic pattern.This year marked significant progress in the regulatory framework, marked the transformation of the regulatory framework towards a clearer and stable direction.The evolution of Layer 2 technology has brought a significant improvement in scalability and efficiency, laying the foundation for enhancing user experience and wide adoption.Looking forward to 2024, the potential adoption of DEFI is a key factor.This change is expected to inject a lot of capital, professional knowledge and reputation into the DEFI ecosystem, which may promote its growth and maturity.With the continuous development of DEFI, it is still a broader and vibrant and important part of the financial field, integrating innovation with emerging supervision and system specifications.
