Key Findings:
In 2024, the DeFi sector is projected to record a 47.5% revenue increase to $26.15 billion.
Between 2023 and 2027, DeFi market revenue is projected to rise to $18.28 billion, representing a 103% increase.
The DeFi user base in the USA will increase by 95%, from 8,673,000 in 2023 to a whopping 16,920,000 in 2027.
Revenue in the DeFi market is projected to reach $26.15 billion in 2023 and $36.02 billion by 2027.
Decentralized finance (DeFi) allows you to bypass traditional banking systems and engage in direct peer-to-peer trades. In 2021, DeFi gained mainstream popularity and experienced significant growth. The DeFi Pulse Index increased by 154%, and the total value locked (TVL) reached $179 billion by November 2021. So, what’s driving this financial revolution and what trends can we expect?
A $18.28B Advance Is Expected In Revenue Within The DeFi Market By 2027
The latest figures from Statista show that the DeFi market revenue will continue to see significant and steady growth. It is expected to reach a total of $37 billion by 2028 with an annual growth rate of 9.07%. In 2023, the market recorded $17.74 billion in revenue, which was a substantial increase of 226.7% from the previous year. The revenue is projected to increase by 47.5% in 2024 to $26.15 billion and continue growing to $36.02 billion by 2027. This represents a 103% increase in DeFi market revenue between 2023 and 2027.
The average revenue per user in the DeFi market is also expected to rise. It was $1,064 in 2023 and is projected to reach $1,378 this year and $1,650 by 2027. The growth of the DeFi market can be attributed to various factors, including inflation, hidden fees, red tape, and time wasted in traditional finance solutions.
Why is DeFi Growing So Fast?
The DeFi sector is experiencing significant growth and innovation due to several factors. There is increasing demand for DeFi services that are more accessible, transparent, and inclusive than traditional finance. Blockchain’s programmability and flexibility enable individuals and entities to create new financial instruments and services. The rise of decentralized exchanges (DEXs), yield farming, and the integration of non-fungible tokens (NFTs) also contribute to the growth of DeFi.
The DeFi market will continue to grow due to the development of new use cases and applications, increasing adoption by mainstream investors, and the emergence of new platforms and protocols. Derivatives trading and asset tokenization are identified as two areas with significant growth potential in the next three years.
95% More Americans Will Utilize The DeFi Market By 2027
The USA is projected to have the highest number of DeFi users globally. It will double its user base from 8,673,000 in 2023 to 16,920,000 in 2027, representing a 95% increase. The UK follows closely behind but with a smaller user base. It is projected to experience a 144% jump in DeFi users by 2027. Russia, Germany, and Canada are also expected to see significant growth in their DeFi user bases.
Overall, the global DeFi user base is expected to reach 21.83 million by 2027. The penetration rate of DeFi users is projected to increase from 0.22% in 2023 to 0.28% in 2028. The growth of DeFi can be attributed to the increasing demand for decentralized solutions and the loss of trust in central banks.
Regulatory and Security Threats on the Horizon
While the DeFi market is experiencing rapid growth, it is not without challenges. Regulatory uncertainty and security concerns are two significant threats to the market between 2023 and 2027. Weak coding in smart contracts can be exploited by malicious actors, posing a security risk to users’ funds. Governments and regulators may also attempt to legislate their
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