Decentralized Finance Market Size, Scope, Growth and Profit-Sources Report to 2031 (2024)

The Global Decentralized Finance Market Size is valued at 20.22 billion in 2023 and is predicted to reach 398.77 billion by the year 2031 at a 45.36% CAGR during the forecast period for 2024-2031.

Decentralized Finance platforms were employed to boost productivity, contributing to the industry's success. An increase in e-sports and entertainment has also been cited as a key driver for decentralized finance platforms since developers use decentralized finance tokens for in-app transactions. Since they let users exchange tokens and expand their ecosystem, market games and artifacts are becoming more and more well-liked genres on the blockchain.

Decentralized finance tools also come with specific hazards, which could endanger global market expansion. Key drivers influencing the decentralized finance market growth include populations that are under and unban, venture capital funding in the technology sector, rising spending and rising demand for trying to cut technologies in the finance industry. Decentralized finance presents a wide range of opportunities. Distributed finance presents enhanced efficiency as its initial possibility. The efficiency of money transfers can be improved by decentralized finance.

Decentralized finance can enhance efficiency by using smart contracts in place of trust requirements. In a decentralized financial environment, two parties willing to exchange digital assets in tokens do not require a third party or financial intermediary. The main obstacles to industry expansion are user error, targeted hacks, and decentralized finance network security. However, in the years to come, the use and acceptance of blockchain-based prediction tools will widen new growth opportunities in the worldwide decentralized finance market expansion.

Recent Developments:

• In January 2022.-A Web3 wallet company named Meta mask announced the beta launch of the Ethereum staking features that may be used with Lido's liquid staking solutions According to reports, end users can select any staking provider from the Web3 wallet's UI if they want to earn staking rewards. The project will support the worldwide decentralized finance (Decentralized finance) market's growth.

• In January 2022-Blue, a company that provides identity verification services for Decentralized finance dealers, launched $3.2 million in investment in stealth mode. The tactical choice will be used to significantly enhance the Decentralized finance protocol's identity verification operations.

Competitive Landscape:

Some of the decentralized finance market players are:

• Compound Labs, Inc.
• Maker DAO
• Agave
• Unisa
• Sushi Swap
• Curve Finance
• Synthetic
• Balancer
• Bancorp Network
• Badger DAO

DeFi Market Segmentation:

The decentralized finance market is segmented based on product and application. Based on product, the market is segmented as blockchain technology, decentralized applications (DAPPS) and smart contracts. By application, the market is segmented into assets tokenization, compliance & identity, marketplaces & liquidity, payments, data & analytics, decentralized exchanges, prediction industry, stablecoins and others.

Based On Component, The Blockchain Technology Segment Is Accounted As A Major Contributor In The Decentralized Finance Market

The blockchain technology category is expected to hold a major share in the global decentralized finance industry in 2021. Blockchain technology can replace the present decentralised business model underpinnings by promoting decentralized trust, reducing cost, and boosting autonomous platforms. Decentralized financial services are often more inventive, interoperable, decentralized, borderless, and accessible, and blockchain technology facilitates their rise in the finance industry. Autonomous financial services powered by blockchain technology can expand financial inclusion, offer open access, encourage creativity, and create new opportunities for business and innovation.

Payment Segment Witnessed Growth At A Rapid Rate

The payment segment is projected to grow at a rapid rate in the global decentralized finance market. Decentralized finance protocols provide important advantages for data analysis and decision-making. Decentralized finance protocols aid in risk assessment and create economic prospects because they are open to data and network activity. Users can utilize a variety of dashboards and tools provided by decentralized finance marketplaces to compare yield and availability and assess platform risks., especially in countries such as the US, Germany, the UK, China, and India.

In The Region, The North America Decentralized Finance Market Holds Significant Revenue Share

The North America decentralized finance market is expected to register the highest market share in terms of revenue soon. to growth in the use of cloud-based deploying applications for expanding customer needs, an increase in the demand for customer relationship management, and a rise in the level of automation in this area. In addition, Asia Pacific is projected to grow at a rapid rate in the global decentralized finance market. Increased market development and research efforts as well as increased cloud-based adoption will open more chances in this area.

Decentralized Finance (DeFi) Market Report Scope:

Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions

Chapter 2. Executive Summary

Chapter 3. Global Decentralized Finance Market Snapshot

Chapter 4. Global Decentralized Finance Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis

Chapter 5. Market Segmentation 1: by Component Estimates & Trend Analysis
5.1. by Component & Market Share, 2019 & 2031
5.2. Market Size (Value (US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Component:

5.2.1. Blockchain Technology
5.2.2. Decentralized Applications (daps)
5.2.3. Smart Contracts

Chapter 6. Market Segmentation 2: by Application Estimates & Trend Analysis
6.1. by Application & Market Share, 2019 & 2031
6.2. Market Size (Value (US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Application:

6.2.1. Assets Tokenization
6.2.2. Compliance & Identity
6.2.3. Marketplaces & Liquidity
6.2.4. Payments
6.2.5. Data & Analytics
6.2.6. Decentralized Exchanges
6.2.7. Prediction Industry
6.2.8. Stable coins
6.2.9. Others

Chapter 7. Decentralized Finance Market Segmentation 3: Regional Estimates & Trend Analysis

7.1. North America

7.1.1. North America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Component, 2024-2031
7.1.2. North America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
7.1.3. North America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031

7.2. Europe

7.2.1. Europe Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Component, 2024-2031
7.2.2. Europe Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
7.2.3. Europe Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031

7.3. Asia Pacific

7.3.1. Asia Pacific Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Component, 2024-2031
7.3.2. Asia Pacific Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
7.3.3. Asia Pacific Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031

7.4. Latin America

7.4.1. Latin America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Component, 2024-2031
7.4.2. Latin America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
7.4.3. Latin America Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031

7.5. Middle East & Africa

7.5.1. Middle East & Africa Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Component, 2024-2031
7.5.2. Middle East & Africa Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
7.5.3. Middle East & Africa Decentralized Finance Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031

Chapter 8. Competitive Landscape

8.1. Major Mergers and Acquisitions/Strategic Alliances

Segmentation of Decentralized Finance Market-

Decentralized Finance Market By Component

• Blockchain Technology
• Decentralized Applications (daps)
• Smart Contracts

Decentralized Finance Market By Application

• Assets Tokenization
• Compliance & Identity
• Marketplaces & Liquidity
• Payments
• Data & Analytics
• Decentralized Exchanges
• Prediction Industry
• Stable coins
• Others

Decentralized Finance Market By Region-

North America-

• The US
• Canada
• Mexico

Europe-

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific-

• China
• Japan
• India
• South Korea
• Southeast Asia
• Rest of Asia Pacific

Latin America-

• Brazil
• Argentina
• Rest of Latin America

Middle East & Africa-

• GCC Countries
• South Africa
• Rest of Middle East and Africa

InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.

Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.

Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.

Secondary research

The secondary research sources that are typically mentioned to include, but are not limited to:

• Company websites, financial reports, annual reports, investor presentations, broker reports, and SEC filings.
• External and internal proprietary databases, regulatory databases, and relevant patent analysis
• Statistical databases, National government documents, and market reports
• Press releases, news articles, and webcasts specific to the companies operating in the market

The paid sources for secondary researchlike Factiva, OneSource, Hoovers, and Statista

Primary Research:

Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies

The contributors who typically take part in such a course include, but are not limited to:

• Industry participants: CEOs, CBO, CMO, VPs, marketing/ type managers, corporate strategy managers, and national sales managers, technical personnel, purchasing managers, resellers, and distributors.
• Outside experts: Valuation experts, Investment bankers, research analysts specializing in specific markets
• Key opinion leaders (KOLs) specializing in unique areas corresponding to various industry verticals
• End-users: Vary mainly depending upon the market

Data Modeling and Analysis:

In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.

The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.

To know more about the research methodology used for this study, kindly contact us/click here.