decentralized finance (decentralized finance)Decentralized finance) is gaining momentum, as the sector adapts to evolving market conditions and technological capabilities.

After significant fluctuations in recent years, DeFi's market share in cryptocurrency trading has increased from 0.33% in 2020 to 11.91% In 2024, according to researchers at the cryptocurrency platform portal.io.

talking to DecryptionGate.io researchers noted increased regulatory clarity, Layer-2 Innovative solutions and protocols, institutional interests, and global economic instability are seen as major drivers of renewed interest in decentralized finance. They also highlighted the importance of 2020's "DeFi Summer" as a learning experience, arguing that the sector should focus on "real-world utilities and robust infrastructure" rather than speculative gains.

The evolution of the DeFi platform and infrastructure

According to Gate.io researchers, the trading platform landscape has evolved significantly since the “DeFi Summer” of 2020. This period has seen unprecedented growth in liquidity mining and yield farming, with projects such as complex Introducing innovative token distribution mechanisms that sparked widespread participation in DeFi protocols.

Today, the total value of the locked sector (TVL) is 120 billion dollars It represents 3.5% of The total market capitalization of cryptocurrencieswith established protocols outlining continued use. The researchers also stressed that the success of decentralized platforms contrasts sharply with other Web3 applications Direct implementation Processing billions of dollars in volume metaverse platforms like decentralization and Sand It struggles to maintain even a few thousand daily active users, compared to a traditional gaming platform Roblox 80 million.

As the DeFi ecosystem has matured, existing exchanges have evolved to bridge the gap between centralized and decentralized finance. Gate.io has transitioned from a traditional cryptocurrency exchange founded in 2013, to a comprehensive platform that includes DeFi functionality.

Through the Gate Web3 platform, users can access decentralized services including token swaps and cross-chain transfers, while maintaining the security benefits of centralized infrastructure. The platform also facilitates DeFi participation through Gate Startup, which helps launch and incubate new blockchain projects, contributing to the growth of the ecosystem.

Innovation and security

The evolution of DeFi technology has also seen significant improvements in security infrastructure, with a significant decline in successful exploits over the past year driven by more comprehensive smart contract audits and improved security practices, researchers report. Platforms are increasingly implementing comprehensive security measures to protect user assets while maintaining the accessibility that makes DeFi attractive.

Gate.io represents this industry-wide focus on combining innovation and security. The 100% Proof of Reserves system uses open source Merkle tree solutions combined with third-party audits, allowing users to independently verify deposited assets. The platform's SAFU (Secure Asset Fund for Users) portal also provides additional protection through transaction fee income, while multi-layered safeguards protect users during logins, transactions and withdrawals. These security features work in conjunction with the platform's technical capabilities, including cross-chain transfers and dapp Integration, to create a secure environment for DeFi activities.

This focus on security extends to Gate.io's trading infrastructure as well, where automated systems monitor suspicious activity while keeping transactions processed efficiently. The platform's approach reflects the broader DeFi sector's movement toward combining strong security measures with technological advancements, addressing two key requirements for mainstream adoption.

Strategic investment and real-world asset integration

Gate Labs actively supports DeFi innovations, with recent investments including the auction-focused Pencils protocol and revenue aggregation services for both blockchain-native assets and real assets (RWAs). The investment supports security auditing, community development, and technical infrastructure, including Zero knowledge Technology on the scrolling network.

RWA integration represents an expanding area of ​​focus – as most banks continue to rely on the 50-year-old SWIFT system for international transfers, with minimal innovation in the underlying infrastructure. While traditional banks maintain expensive back offices and restricted operating hours, DeFi protocols can process transactions 24/7 with minimal overhead, creating opportunities for platforms that bridge centralized and decentralized finance.

Future outlook

Recent data shows increasing comfort with decentralized trading, with the ratio of spot trading volume from DEX to CEX rising from less than 10% in 2023 to 13.92% in 2024The researchers reported. This growth has been particularly strong in long-tail assets and new token launches, where the permissionless nature of DEXs offers significant advantages over centralized platforms. The rapid emergence of layer 2 solutions has also boosted their adoption by reducing transaction costs and improving processing speeds, making DeFi more accessible to mainstream users.

With market analysts predicting that DeFi's market share could grow to 10% within two years, cryptocurrency platforms like Gate.io are poised to meet the growing demand, by developing trading infrastructure, Web3 capabilities, educational resources, and investing in emerging protocols.