DeFi Governance Stats: Decentralized finance ecosystem in 2023: A snapshot
DeFi leverages blockchain tech to create decentralized financial services and products outside of traditional authority structures. Offering increased flexibility, clarity, speed, and technological advancements, DeFi strives to reshape the financial landscape.
Adoption, inventiveness, and value production have all risen dramatically during the course of the previous several years thanks to DeFi. DeFi encountered significant hurdles during 2022, among them market fluctuations, regulatory unpredictability, cybersecurity risks, and scalability concerns. Although challenges abound, DeFi persists, demonstrating fortitude and capacity for development. Evolution occurs alongside expanded reach in 2023.
By exploring statistical information and patterns, we gain insight into the status quo and possible trajectory of DeFi governance. Stakeholders work together to direct DeFi protocol/platform growth via consensus and collective decision-making.
DeFi Governance Stats: Market Size and Dominance
By tracking TVL, you gain insight into the scale and expansion of DeFi. ATVL figures reported by DefiLlama1 reveal a sharp decline, dropping from $166.7B in Jan ’22 to almost $42B as of April 24th, ’23. A 76% drop in TVL was seen in dollars in 2022, mirrored in part by DeFi’s exposure to crypto price fluctuations during the same period.
TVL might provide information about DeFi engagement but isn’t flawless; it may be impacted by elements, including price adjustments, token creation rates, and earnings motivators. Consequently, analyzing further metrics, including customer quantities, operations, profits, etc., offers helpful insights regarding DeFinancetags: #fintech, #decentralization, #blockchain).
Dune Analytics reports that as of April 24th this year, an increase to nearly 9 million distinct users engaging with Ethereum-based DeFi platforms from around 3 million in early 2022 has been observed. With an uptick of 207%, DeFi adoption through Ethereum expanded last year.
Token Terminal reports that DeFi protocols generated more than $4.7 billion in income through several blockchains throughout 2022. According to the information provided, DeFi’s earnings rose by an impressive 161% in 2022 alone.
An alternate method for gauging DeFi’s scope and impact is by referencing market capitalization of DeFi assets, indicating their proprietorship and management privileges over DeFi platforms or procedures. Data from CoinGecko suggests the DeFi token market valuation dropped significantly, going from around $131B in January 2022 to above $46B in late April 2023. A decline of 65% occurred in market value during 2022 when comparing DeFi tokens to dollars.
A rise from 2.9% in January 2022 to approximately 3.3% by April 2023, per CoinMarketCap figures, highlights the expansion of DeFi tokens within the broader cryptocurrency sector. In 2022, DeFi tokens grew in significance within the crypto market, expanding their dominance by 14%.
DeFi Governance Stats: Adoption by Country
By examining its adoption across different countries or regions, one can view DeFi governance in another light. Understanding how this plays out sheds light on the regional patterns and scope of DeFi enthusiasts.
According to Chainalysis, a company that provides blockchain data and analysis for governments, businesses, and individuals, the top countries by share of total value received by decentralized exchanges (DEXs), which are one of the main types of DeFi platforms that allow users to trade crypto assets without intermediaries or custodians, in 2022 were:
- United States: 25%
- China: 16%
- Vietnam: 10%
- Russia: 8%
- India: 7%
According to ConsenSys, a company that develops software and services for the Ethereum ecosystem, the top countries by share of total MetaMask users, which is the most popular non-custodial wallet that allows users to access and interact with DeFi protocols and platforms on Ethereum, in 2022 were:
- United States: 18%
- India: 14%
- Nigeria: 8%
- Philippines: 6%
- Vietnam: 5%
The data shows that DeFi governance has users spread globally & diversely. To create a more diverse and fair DeFinancial system governance ecosystem, we must focus on closing knowledge gaps, improving education standards and regulatory frameworks.
DeFi Governance Stats: Segments and Leaders
Fresh perspectives on DeFi governance involve examining its segments and leaders separately. By analyzing this data, we uncover the specific areas wherein DeFi platforms and protocols are advancing.
According to DefiLlama1, the main segments of DeFi by TVL as of April 24, 2023 were:
- Lending: $13.7 billion
- DEXs: $9.9 billion
- Derivatives: $5.4 billion
- Assets: $4.8 billion
- Payments: $2.7 billion
- Others: $5.3 billion
Through DeFi platforms or systems, loaning constitutes the greatest part of the industry, accounting for the total value of assets (TVL) borrowed or lent without middlemen or undergoing credit checks. The top lending protocols by TVL as of April 24, 2023 were:
- Aave: $4.2 billion
- Compound: $3.8 billion
- MakerDAO: $2.9 billion
With a current estimated TVL nearing $42 billion, Dexs comprises one half among DeFi subsectors. The top DEXs by TVL as of April 24, 2023 were:
- Uniswap: $3.6 billion
- Curve: $2.1 billion
- SushiSwap: $1.6 billion
With regards to DeFi, the TVL indicates that derivatives constitute the third largest segment, implying notable asset participation. The top derivatives protocols by TVL as of April 24, 2023 were:
- Synthetix: $1.9 billion
- dYdX: $1.4 billion
- Perpetual Protocol: $0.8 billion
According to TVL, assets are one of DeFi’s most sizable segments, encompassing various types of tokenization without intermediaries or issuers. The top assets protocols by TVL as of April 24, 2023 were:
- Terra: $1.8 billion
- Wrapped Bitcoin: $1.2 billion
- Yearn Finance: $0.7 billion
A sizable chunk of the overall DeFi market share belongs to payments, which represent the fifth most important aspect. The top payments protocols by TVL as of April 24, 2023 were:
- Lightning Network: $1.5 billion
- Polygon: $0.6 billion
- xDai: $0.2 billion
A multitude of financial services and products are covered under DeFi governance, accommodating multiple stakeholder needs. Addressing issues like scalability, interoperability, security, usability, etc., will enhance and revolutionize DeFi governance.
DeFi Governance Stats: Growth and Potential
From this viewpoint, examining DeFi governance reveals insights into its expansion and possibilities. Through this, we may gain a better understanding of DeFi governance’s trends and influences.
By 2026, according to Market Research & Consulting Services, the worldwide blockchain ventures industry may attain $67.4 billion due to rising investment and increased usage of blockchain technology.