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Key industry figures predict the future of DeFi in 2024

Key industry figures in DeFi predict what trends will dominate the industry in 2024.

This last year may have been a quieter year for decentralized finance (DeFi) than most, but all that could change very soon. Next year looks set to be a landmark period for DeFi as crypto winter thaws and several trends reach their natural maturation points.

The sector as a whole is currently in good spirits. Optimism abounds as the green shoots of renewed growth begin to show. Julian Deschler, co-founder of Web3 privacy protocol Elusiv, is among the leaders who are bullish on DeFi’s prospects in the near term.

“We look forward to a resurgence of constructive growth in the DeFi ecosystem. The projects that were able to navigate the last couple of years and continue to deliver are a sign of real value and scalability. We see 2024 as the year where these projects catalyze legitimate traction for DeFi and establish the beginning of long-term mainstream adoption,” Deschler told Cointelegraph.

Kain Warwick, founder of derivatives markets ecosystem Synthetix, echoed those sentiments.

We’ve already seen impressive price momentum in this last quarter and should expect to see this continue as macro liquidity thaws throughout the year.”

In their anticipation of a great year ahead, Deschler and Warwick are joined by Sam MacPherson, co-founder of Phoenix Labs and contributor to MakerDAO’s subDAO Spark. According to his analysis, there is strong evidence of an emerging bull trend.

Excited to see all these RWA tokenizations coming online. The space is maturing rapidly.— Sam MacPherson (@hexonaut) December 18, 2023

Regulation and transparency

One area that is likely to witness profound change is regulation. In 2023, the crypto industry regularly found itself at odds with United States lawmakers keen to impose themselves on the crypto industry. DeFi is unlikely to avoid scrutiny in the year ahead.

“The majority of DeFi projects have certain elements of centralized control and are, in fact, hybrid finance (HyFi), meaning they exist somewhere on the spectrum between CeFi [centralized finance] and DeFi,” explained Catania. “In 2024, true DeFi will continue to remain outside of the regulatory perimeter, as it cannot be regulated under existing regulatory paradigms. However, it will be the year that regulators in many jurisdictions, including the U.S., will crack down on HyFi.”

Antoni Zolciak, co-founder of Aleph Zero — a privacy-enhancing layer 1 — also believes 2024 will be an important year for regulation.

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