VanEck, a leading asset management firm, has forecasted a remarkable rise in trading volumes within decentralized finance (DeFi) for the upcoming year. The firm projects that trading on decentralized exchanges (DEXs) may represent 20% of the total spot trading volumes seen on centralized exchanges (CEXs) by 2025.
What Are the Expectations for DeFi and DEX Trading?
The firm highlights that while DEX trading has reached historic peaks against centralized platforms, it still lags 24% behind the all-time high of total value locked (TVL) in DeFi. VanEck anticipates that DEX trading could surpass $4 trillion by 2025, propelled by the increasing interest in artificial intelligence (AI) tokens and new consumer-oriented decentralized applications (DApps).
Will Tokenized Securities Impact DeFi Growth?
Yes, according to VanEck’s predictions, the rise of tokenized securities and high-value assets is expected to fuel DeFi’s expansion, generating fresh liquidity and broadening its applications. They predict that the total value locked in DeFi may exceed $200 billion by the end of 2025.
- Trading volumes on DEXs may hit $4 trillion by 2025.
- The total value locked in DeFi is predicted to surpass $200 billion.
- Bitcoin could reach $180,000, while Ethereum may exceed $6,000.
- Potential 30% drop in Bitcoin prices post-peak, with altcoins declining up to 60%.
These insights serve as vital indicators for participants in the cryptocurrency market, suggesting that the growth of DeFi and DEXs could align with the increasing demand in the digital economy. However, given the market’s inherent volatility, stakeholders are urged to proceed with caution.