Market Insights Financial Digital Assets

DeFi - Asia

Asia

The DeFi market in Asia is projected to witness a substantial increase in revenue, with an estimated amount of US$130.3m by 2024.
This growth is expected to continue at an annual rate of -2.30% (CAGR 2024-2025), resulting in a projected total revenue of US$127.3m by 2025.
In terms of average revenue per user, the DeFi market in Asia is anticipated to reach US$7.9 in 2024.
When compared globally, it is noteworthy that United States leads the pack with a projected revenue of US$73,350.0k in 2024.
Looking ahead, the number of users in the DeFi market is expected to rise to approximately 16.49m users by 2025.
This indicates a user penetration rate of 0.36% in 2024, which is expected to increase slightly to 0.36% by 2025.
In China, the DeFi market is rapidly expanding as investors are embracing decentralized finance solutions for greater financial inclusivity.

Key regions: Brazil, South Korea, India, France, Japan

Market

Region

Region comparison

Currency

Analyst Opinion

The DeFi (Decentralized Finance) market is currently experiencing significant growth and innovation. One current trend is the rise of decentralized exchanges (DEXs), which allow users to trade cryptocurrencies without a central authority. Another trend is the emergence of yield farming, where users can earn rewards for providing liquidity to DeFi protocols. Additionally, the integration of non-fungible tokens (NFTs) into DeFi is also gaining popularity, allowing for new ways to collateralize assets.
The growth of the DeFi market is driven by several factors, including the increasing demand for decentralized financial services that are more accessible, transparent, and inclusive than traditional finance. Additionally, the flexibility and programmability of blockchain technology enable the creation of new financial instruments and services that were previously impossible. The availability of decentralized lending, borrowing, and trading platforms also contributes to the growth of DeFi, allowing users to interact with financial markets in a more decentralized and permissionless way.
Looking ahead, the DeFi market is expected to continue growing. Factors that are expected to drive this growth include the ongoing development of new DeFi use cases and applications, the increasing adoption of cryptocurrency by mainstream investors, and the continued emergence of new DeFi platforms and protocols. However, the market is also likely to face challenges, such as regulatory uncertainty and security concerns, which could impact its growth in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.