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 post, 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 dynamics of liquidity
Perpetual liquidity pools are set to revolutionize 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 prominent examples.
Furthermore, the intent-based architecture significantly simplifies user interactions with decentralized finance platforms. Instead of setting each transactional parameter, users can simply specify the desired outcome. “ This approach removes technical complexities and enables a smoother and more efficient user experience,” according to CoinGecko. Crypto protocols like UniswapX and Aperture Finance illustrate this innovation well.
Incentives, crypto airdrops and liquid staking protocols
Crypto incentives and airdrops play a crucial role in the DeFi ecosystem, driving user participation and strengthening 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 of new crypto projects ». Platforms like Blur, EigenLayer, and Ethena are notable examples.
As for liquid staking protocols, they represent a major advance in allowing users to maintain liquidity while staking their cryptos. Anything that improves capital efficiency and provides new return opportunities. For CoinGecko, “ Liquid Staking Tokens (LSTs) act as derivatives of staked assets, enabling their use in various DeFi activities“. Likewise, restaking protocols like EigenLayer are becoming popular and offering liquid restaking tokens (LRTs) for additional returns. The expansion of Layer 2 solutions, like 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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