jakiro
Author: @0xCheezzyyyy Compiled by: Vernacular Blockchain
We have come a long way since DeFi Summer 2021.Today, DeFi has formed many mature fields and has the ability to continue to grow and become active.
In comparison, however, this is still in its early stages, as the crypto market has a market capitalization of about $3.3 trillion, while the traditional financial market is as high as $133 trillion.This article will take a look at some observations and findings about the industry dominant platform.
The core philosophy of DeFi is to provide a more innovative and efficient system that solves the major inefficiency problems of traditional finance through proven product market fit (PMF).Similarly, DeFi is composed of several key areas that often present an oligopoly structure.
So, what is the situation today?
1. DEX
Let’s first look at decentralized trading platforms (DEXs): In the fourth quarter of 2024, @RaydiumProtocol surpassed @Uniswap with about 61% of the market share, becoming a leader in the field.
Although its total value lockout (TVL) is only about 39% of Uniswap.While this may be related to @solana’s memecoin craze, its long-term performance remains uncertain.
In the Perpetual Contract DEX field, we have a clear winner.
Since the third quarter of 2024, @HyperliquidX’s market share has climbed from 24% to 73% (a 3x increase).Overall volume of perpetual contract DEX has continued to grow since the fourth quarter of 2024, with current daily trading volume of about $8 billion compared to $4 billion at the time.
HL (Hyperliquid) is gradually challenging the centralized trading platform and trying to become the main platform for price determination in the crypto market.
2. Borrowing
The same is true for the borrowing industry.Since 2024, @aave’s industry dominance in the lending and borrowing sectors has become increasingly obvious:
Deposits: Rised from 42.1% to 65.78%
Borrowing: Rised from 31% to 61%
Even without the most attractive yields, Aave remains the platform of choice because of the reputation it has built over a long time and the credibility of the protocol.
@pendle_fi is leading the revenue field, setting an all-time high Ethereum TVL (approximately 1.59 million ETH).
Its unique value proposition is to be a key driver of value discovery in the field, and despite the slowdown in the DeFi market and the market sentiment is relatively short, it remains the highest TVL at all times.
This clearly demonstrates its strong product market fit (PMF).
3. Liquid staking platform
Liquid staking is undoubtedly the largest TVL (about $35 billion) area in DeFi.
@LidoFinance is the undisputed leader, controlling about 70% of the market share and nearly monopolizes the LST market.Its TVL ($24.8 billion) is 5.17 times the second-largest contender @binance’s $bETH ($4.8 billion).
This dominance is not driven by the staking income, but by the asset value of $stETH:
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Best Asset Utilization: As the most integrated asset in DeFi.
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The most trustworthy service: Become the preferred staking solution for funds and institutions.
Here, credibility and trust are key to driving widespread adoption.
As for liquid restaking (liquid resting), we have also seen similar crowd trends.
It is worth noting that @ether_fi’s market dominance has increased significantly (from 35.3% to 63%), with its TVL growing by about 770% in 2024, even after the end of S1 and S2 stakedrop.
This increase is mainly due to:
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First-mover advantage in ecosystems such as @eigenlayer, @symbioticfi and @Karak_Network.
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Extensive DeFi integration
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Trust of product suite
@Lombard_Finance’s performance in the BTC-Fi sector is highly similar to the trend in the LST/LRT sector, steadily rising to 49.5%.
As @babylonlabs_io matures (currently with a market capitalization of $5.5 billion), the demand for $BTC as the preferred crypto-security asset is expected to grow exponentially, with market opportunities reaching $2 trillion.
@Lombard_Finance has mastered the industry-led strategy.With $LBTC as the most widely integrated, used and security-focused LRT in DeFi, Lombard is positioning it as the preferred asset for institutional trust and widespread adoption, similar to the $stETH role.Details: https://x.com/0xCheezzyyyy/status/1886623732770463885
4. Summary
In summary, DeFi fields have found their own positioning, complement each other, and formed a complete ecosystem.This marks the rise of a new native financial model that is destined to subvert centralized finance (CeFi), and we are fortunate to witness this process.
As we enter the next stage of expansion, there will be more efforts to expand into new verticals, enter untapped markets, and even integrate with CeFi:
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@ethena_labs plans to integrate traditional financial payment systems
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@Mantle_Official’s Mantle Index Fund and Mantle Bank plan to combine crypto with traditional finance
With more institutions paying attention, such as @BlackRock’s $BUIDL for DeFi, and @worldlibertyfi’s DeFi portfolio and spot ETF, the future potential looks very promising.
