How Gate.io is evolving amid the DeFi renaissance

Decentralized Finance (DeFi) is gaining momentum, as the sector adapts to market conditions and growing technological capabilities.

After significant volatility in recent years, the market share of DeFi in cryptocurrency trading has grown from 0.33% in 2020 to 11.91% in 2024, according to researchers for the crypto platform Gate.io.

Talking to DecryptionGate.io researchers identified increasing regulatory clarity, layer-2 solutions, innovative protocols, institutional interest and global economic instability as key drivers for the resurgence of interest in DeFi. They also highlighted the importance of “DeFi Summer” 2020 as a learning experience, arguing that the sector should focus on “real-world utility and robust infrastructure” over speculative gains.

DeFi platform and infrastructure development

According to Gate.io researchers, the trading platform landscape has evolved significantly since the “DeFi Summer” of 2020. This period saw unprecedented growth in liquidity mining and yield farming, with projects like Shape introduced innovative token distribution methods that encouraged widespread participation in DeFi protocols.

Today, the total value of the locked sector (TVL) of $120 billion represents 3.5% of the total crypto market cap, with established protocols showing stable usage. The researchers also pointed out that the success of decentralized platforms is very different from other Web3 applications – although DEXs a process of billions of dollars in volume, large metric Platforms like Decentraland and The Sandbox struggle to maintain even a few thousand daily active users, compared to Roblox's traditional gaming platform of 80 million.

As the DeFi ecosystem has matured, established exchanges have evolved to bridge the gap between centralized and decentralized finance. Gate.io has moved from a traditional cryptocurrency exchange established in 2013, to a complete platform including DeFi functionality.

Through its Gate Web3 platform, users can access decentralized services including token swaps and cross-chain transfers, while maintaining the security benefits of a centralized infrastructure. The platform enables DeFi participation through Gate Startup, which helps launch and promote 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, the researchers said, with a significant decline in successful exploits over the past year driven by deeper smart contract audits and security practices better. Platforms are increasingly implementing comprehensive security measures to protect user assets while maintaining the accessibility that makes DeFi attractive.

Gate.io is an example of this industry-wide emphasis on combining innovation with security. Its 100% Proof of Reserves system uses open-source Merkle tree solutions combined with third-party audits, allowing users to independently verify investment assets. The platform's SAFU Gate (Secure Asset Fund for Users) also provides additional protection through revenue from transaction fees, while multi-layered protections protect users during login. -in, transactions and withdrawals. These security features work together with the platform's technical capabilities, including cross-chain transfers and dapp integration, to create a secure environment for DeFi operations.

This focus on security extends to Gate.io's transaction infrastructure as well, where automated systems monitor suspicious activity while maintaining efficient transaction processing. The platform's approach reflects the wider DeFi sector's move towards combining robust security measures with technological advancements, addressing two key requirements for mainstream adoption.

Strategic investment and asset integration in the real world

Gate Labs is actively supporting DeFi innovation, with recent investments including Protocol Pencils focused on auction and product aggregator services for both blockchain-native and real-world assets real (RWAs). The investment will support security research, community development, and technical infrastructure, including new technology on the Scroll network.

This RWA integration represents a growing area of ​​focus – most banks still rely on the 50-year-old SWIFT system for international transfers, with little innovation in basic infrastructure. While traditional banks maintain expensive back offices and limited working hours, DeFi protocols can process transactions 24/7 with minimal cost, creating opportunities for platforms that bridge centralized and decentralized finance. centralized.

Future outlook

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

With market analysts predicting that the DeFi market share could grow to 10% within two years, crypto platforms such as Gate.io are poised to meet the growing demand, through ' development of trading infrastructure, Web3 capabilities, educational resources, and investment in emerging protocols.