DeFi
DeFi Boom: 2024 trends to watch according to Coingecko
Fri June 21, 2024 ▪ 3 min reading ▪ by Luc Jose A.
In 2024, decentralized finance (DeFi) is positioned as one of the most dynamic and promising sectors of the crypto ecosystem. According to a recent report published by CoinGecko, which we will dissect in this article, new trends in DeFi offer unprecedented opportunities. With total value locked (TVL) now exceeding $90 billion, DeFi is poised to transform the way we think about and use financial services.
The new liquidity dynamic
Perpetual liquidity pools are revolutionizing decentralized finance in 2024. These pools allow liquidity providers to earn real returns without the need to constantly monitor their positions. As explained CoinGecko, “perpetual liquidity pools capitalize on real returns, providing a reliable option for traders looking to increase their leverage.” Crypto exchanges like GMX and Jupiter are notable examples.
Additionally, the intent-based architecture significantly simplifies user interactions with decentralized finance platforms. Instead of setting each transaction parameter, users can simply specify the desired outcome. “This approach removes technical complexities and allows for a smoother and more efficient user experience,” according to CoinGecko. Cryptographic protocols like UniswapX and Aperture Finance illustrate this innovation well.
Incentives, Crypto Airdrops, and Liquid Staking Protocols
Incentives and crypto airdrops play a crucial role in the DeFi ecosystem by boosting user participation and boosting liquidity. Many DeFi projects use these mechanisms to attract and retain users. According to CoinGecko, “Airdrops are widely used to build communities and increase visibility for new crypto projects.” Platforms like Blur, EigenLayer, and Ethena are notable examples.
As for liquid staking protocols, they represent a major advancement in allowing users to maintain liquidity while staking their cryptos, thereby improving capital efficiency and providing new yield opportunities. For CoinGecko, “Liquid Staking Tokens (LSTs) act as derivatives of staked assets, enabling their use in various DeFi activities.” Likewise, takeover protocols like EigenLayer are becoming popular and offering liquid takeover tokens (LRT) for additional returns. The expansion of layer 2 solutions, such as Metis’ Liquid Staking Blitz, and the potential approval of Ethereum spot ETFs are key factors making staking more attractive and lucrative.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.