DeFi’s total value locked surged to $50 billion in October 2022.
Significant venture capital spent around $14 billion on 725 different crypto ventures in the first half of 2022.
Despite the current crypto market conditions, Decentralized finance (DeFi) still proved its higher scaling potential than the traditional financial industry. Some segments of the DeFi industry continue to “display a positive trend,” while the overall value locked fell from its peak of $180 billion in December 2021 to around $50 billion by the end of October 2022.
HashKey Capital, one of the prominent digital asset financial services groups in Asia has released its yearly 2022 DeFi Ecosystem Landscape Report. The research shows, DeFi protocols are robust and are likely to survive in black swan occurrences such as the Terra Luna/UST collapse, bankruptcy of Celsius Network, and FTX crash.
DeFi Market Evolving every day
The research explores the state of the decentralized finance sector and reveals that, despite the crypto winter, the market is still growing and filled with opportunity. However, a still-emerging DeFi market attracts significant venture capital. According to HashKey’s study, VCs spent more than $14 billion on 725 different crypto ventures in the first half of 2022 alone, many of which used DeFi technologies.
Not only venture capital funds have been pumped into DeFi also the industry has drawn a sizable of new users over the past year. DeFi user growth in 2022 was an optimistic 44%, indicating that the industry still has a chance to experience exponential development. DeFi reached 5 million user wallets in the third quarter of 2022.
In addition, the report discovered that DeFi’s TVL would have been the 20th largest bank in the United States. Also, it emphasizes that over 25% of the 400 Fintech companies with the highest revenue growth are currently blockchain and cryptocurrency-based firms.
However, in 2021, DeFi has a 545% of user growth rate with an explosion of new DeFi protocols. But the recent scratches let only a 31% user growth rate in 2022.