Binance research shows a resurgence of capital returning to cryptocurrency markets – especially in one sector

According to the research department of digital asset exchange Binance, the level of capital flowing into the crypto space has increased by double digits since the beginning of the year.

In a new report, Binance Research states that “the resurgence of markets is coming” and decentralized finance (DeFi) is one of the main beneficiaries.

“Notably, broad market growth was accompanied by significant capital inflows into DeFi, bringing total value this year to $94.9 billion, up from $54.2 billion at the beginning of the year, reflecting strong growth of 75.1% in reflection so far.”

However, Binance’s research arm says that DeFi’s market valuation has yet to see growth that is commensurate with the increase in on-chain liquidity.

According to Binance Research, almost all DeFi subsectors have seen a significant increase in inflows.

“Gone are the days when only sub-sectors such as decentralized exchanges (“DEX”) were the main drivers of DeFi markets. This diversification is fundamental if DeFi is to meet its ambitious revenue projections, such as a forecast of $231.2 billion by 2030. Achieving this requires the development of a diverse range of markets capable of unlocking new financial primitives, enabling users to maximize the value they derive from DeFi.”

The liquid capture subsector of DeFi saw the largest percentage increase in total value locked, followed by the yield market. Only the Collateralized Debt Position (CDP) DeFi subsector saw a slight decline in total value locked.

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