Standard Chartered Predicts DeFi Growth to $2.7 Trillion

Standard Chartered's head of digital asset research, Jeffrey Kendrick, predicts that the decentralized finance (DeFi) market could soar to $2.7 trillion by the end of 2030. This projection indicates a staggering 37-fold growth, primarily fueled by the integration of real-world assets (RWAs) and advancements in on-chain protocols.

Currently, only a small fraction of the stablecoin supply (3%) and RWAs (10%) are being utilized within DeFi. Kendrick anticipates that by 2030, this utilization could rise to 30% within DeFi protocols, necessitating a ninefold increase in the tokenized value involved.

However, experts highlight significant challenges in achieving this growth. Chris Kim, CEO of Axis, notes that issuing the same asset across multiple blockchains can lead to fragmented liquidity and increased costs. Meanwhile, Oya Celiktemur, sales director at Ondo Finance, asserts that mere tokenization does not inherently enhance the liquidity of illiquid assets.

Kendrick also mentioned Uniswap as a key platform for trading RWAs, suggesting that its established reputation and security may attract institutional investors. He believes that collaborations with traditional financial institutions could help Uniswap narrow the market capitalization gap with Coinbase.

Furthermore, in June, Bitwise CIO Matt Hougan observed a shift in advisors' focus from Bitcoin to stablecoins and RWAs, indicating a changing landscape in investment priorities.