Decentralized Finance (DeFi), refers to a set of financial services and products that are built on decentralized blockchain networks, without the involvement of intermediaries such as banks or other financial institutions. DeFi aims to create a more open and accessible financial system that is accessible to anyone with an internet connection. DeFi services and products include lending and borrowing platforms, decentralized exchanges, asset management, insurance, and other financial services that can be accessed and managed through decentralized applications (DApps) on a blockchain network.
DeFi services are available on various blockchain networks, but the majority of the DeFi ecosystem is currently built on the Ethereum blockchain. Some of the key DeFi services available include Compund, Aave & Marker DAO. One other example of a key player in the DeFi space is Uniswap, which is a decentralized exchange (DEX) that allows users to trade cryptocurrencies without the need for intermediaries such as banks or exchanges. Uniswap uses an automated market maker (AMM) system to determine prices and liquidity, which is a new model for trading that does not rely on traditional order books. This allows for more decentralized and accessible trading, as anyone can participate in the network and earn fees by contributing liquidity.
Decentralized exchanges (DEXs)
Decentralized lending and borrowing platforms
Decentralized payment systems
Traditional financial services such as banking and lending that are regulated by governments and require licenses
Physical assets such as real estate or commodities that are not easily tokenized and traded on blockchain networks.
The DeFi (Decentralized Finance) market is currently experiencing significant growth and innovation. One current trend is the rise of decentralized exchanges (DEXs), which allow users to trade cryptocurrencies without a central authority. Another trend is the emergence of yield farming, where users can earn rewards for providing liquidity to DeFi protocols. Additionally, the integration of non-fungible tokens (NFTs) into DeFi is also gaining popularity, allowing for new ways to collateralize assets. The growth of the DeFi market is driven by several factors, including the increasing demand for decentralized financial services that are more accessible, transparent, and inclusive than traditional finance. Additionally, the flexibility and programmability of blockchain technology enable the creation of new financial instruments and services that were previously impossible. The availability of decentralized lending, borrowing, and trading platforms also contributes to the growth of DeFi, allowing users to interact with financial markets in a more decentralized and permissionless way. Looking ahead, the DeFi market is expected to continue growing. Factors that are expected to drive this growth include the ongoing development of new DeFi use cases and applications, the increasing adoption of cryptocurrency by mainstream investors, and the continued emergence of new DeFi platforms and protocols. However, the market is also likely to face challenges, such as regulatory uncertainty and security concerns, which could impact its growth in the coming years.
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.
Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.
Key Market Indicators
Des questions ? Nous nous ferons un plaisir de vous aider.