DeFi or decentralized finance refers to financial services that are powered by blockchain infrastructure and aren’t controlled by a centralized authority such as a bank or a government, meaning that they provide complete control and autonomy.
Although DeFi statistics show it’s still a small market compared to TradFi, Defi is growing quickly and is already irreplaceable for many people who are unbanked or who want to send money abroad with much lower fees.
In this article, we will outline the key DeFi statsto know in 2024 if you are involved in the space. Understanding trends and market data is a good way to stay up-to-date with the DeFi space and make informed trading decisions.
Top 10 DeFi Statistics in 2024
- The number of DeFi users in the world reached 7.5 million in 2021
- The Ethereum blockchain has the largest network, making up 59.2% of blockchain TVL
- DeFi’s TVL is estimated at over $90 billion as of July, 2024
- The Decentralized Finance market is expected to grow at a rate of 46.8% CAGR between 2024 and 2032
- DeFi market revenue is expected to reach $26,170.00m in 2024
- The average revenue per user in the DeFi space stands at $1,378.00 in 2024
- By 2028, the number of global DeFi users is expected to reach 22.9m
- The US has the highest revenue in the DeFi market, reaching $73,350.0k in 2024
- The increasing adoption of cryptocurrency by mainstream investors will support the growth of DeFi
- Peer-to-peer borrowing and lending are amongst the most-used DeFi use cases
Key DeFi Statistics (Updated for July 2024)
In the following section, I will take a closer look at what these statistics mean for the DeFi market.
Understanding adoption and market trends is a key part of making informed investment decisions.
The number of DeFi users in the world reached 7.5 million in 2021
In 2021, the number of worldwide DeFi users reached a peak of 7.5 million. Since then, the number of unique users has dropped, sitting at around 5 million in April 2024.
The drop could be attributed to the crypto bear cycle which occurred in 2022 and saw many people lose interested in decentralized finance.
However, some analysts believe that the dip could mark a potential breakthrough trend for 2024 and beyond. 2024 has seen a market-wide recovery that has been sparked by the launch of crypto spot ETFs, the Bitcoin halving, increased investor interest and the US presidential campaign.
The Ethereum blockchain has the largest network, making up 59.2% of blockchain TVL
It will come as no surprise that Ethereum is the largest blockchain network in the Defi space, making up 59.2% of TVL.
Ethereum is also the second-largest cryptocurrency by market cap and the most used network for building decentralized applications.
DeFi’s TVL is estimated at over $90 billion as of July 2024
Over the last year, DeFi’s TVL has more than doubled to over $90 billion. This reflects wider market trends and shows a strong recovery from 2022.
TVL, or Total Value Locked, is used to measure the total amount (in USD) staked on looked in Decentralized Finance applications. The higher the TVL, the stronger the market is considered to be.
The Decentralized Finance market is expected to grow at a rate of 46.8% CAGR between 2024 and 2032
The future looks bright for DeFi, with an expected market growth of 46.8% CAGR between 2024 and 2032.
The growth will be supported by increased investor interest in cryptocurrency, the development of new DeFi products and use cases, and the wider adoption of web3 technologies.
DeFi market revenue is expected to reach $26,170.00m in 2024
This year, DeFi market revenue is predicted to reach $26,170.00 million. In 2023, revenue predictions stood at $16,960.00 million.
It is clear that the market is recovering from its decline in 2022. Increased interest in cryptocurrency will play a big role in this recovery.
The average revenue per user in the DeFi space stands at $1,378.00 in 2024
Average revenue per user is calculated by dividing the total revenue by number of users. In 2024, the average revenue per user in the DeFi space is $1,378.00.
This represents a slight drop from 2023, which could be due to a high number users.
By 2028, the number of global DeFi users is expected to reach 22.9m
Data shows that the number of deFi users will continue to grow, reaching 22.9 million by 2028.
As it stands, developing countries make up just a fraction of total global users. However, decentralized finance could be most beneficial in countries that are unbanked or have declining currencies. There is a big opportunity for DeFi adoption in these parts of the world.
The US has the highest revenue in the DeFi market, reaching $73,350.0k in 2024
The US contributes that highest revenue in the DeFi market, reaching $73,350 so far in 2024.
This comes as no surprise as the US is one of the biggest players in the DeFi space and also has one of the largest populations in the world.
Other countries leading the way include China, India and the UK.
The increasing adoption of cryptocurrency by mainstream investors will support the growth of DeFi
Much of the expected growth in the DeFi space will be supported by the wider adoption of cryptocurrency.
As demand for crypto increases, so will the demand for products such as staking platforms, decentralized exchanges and DeFi wallets.
Peer-to-peer borrowing and lending are amongst the most-used DeFi use cases
Research by Fuid.AI found that peer-to-peer borrowing and lending are the most used DeFi use cases.
These products allow users to lend digital assets without a third-party intermediary. Users can earn interest on crypto that they lend, providing a way to increase the value of their initial investment.
Peer-to-peer lending is a popular way for investors to earn passive income from DeFi.
Final Thoughts
DeFi is the most innovative segment in crypto, offering opportunities for many services present in traditional finance as well, including investing, saving, exchanges, lending, sending remittances, and insurance.
The DeFi market is still tiny compared to traditional finance, but it’s growing at a 46.8% CAGR, and recovering even in a difficult year for all global markets.
DeFi statistics show there are still fewer than 6 million users in 2024. However, the DeFi sector is making waves in countries that have high purchasing power such as the US and the UK, and in countries with lower and middle incomes such as India and Lebanon, where it’s useful as a transaction path.
FAQs
How many people use DeFi?
In April 2024, there were around 6 million unique active users in the DeFi space. This represents a slight drop from numbers in 2021 but a significant recovery from 2022.
How fast is DeFi growing?
The DeFi market is currently growing at a CAGR of 46.8%.
Does DeFi have a future?
DeFi has the potential to solve a lot of existing problems with traditional finance. This is particularly the case in developing countries with declining currencies. DeFi supports global payments and complete ownership over your finances.
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