Hey Edge readers,
We know keeping up with everything happening in DeFi isn’t easy. There’s always a new trend, innovation, or shift in the market. And let’s be honest, doing the deep research takes time. That’s why we’ve got you covered. Our DeFi Yield Renaissance Report breaks down the key developments shaping the space with insights you won’t find anywhere else. If you want to stay ahead without spending hours digging through data, this report is for you.
Stay sharp. 🫡
- The Exponential team
Recently, we released our DeFi Yield Renaissance Report, breaking down the major trends in the DeFi sector. Some of the main takeaways are:
- DeFi yields are transitioning from token rewards to sustainable, fee-driven revenue models, surpassing $6B in fees earned in 2024.
- Onchain lending is flourishing from higher borrowing demand, with USD yields averaging ~10%, far outpacing TradFi returns.
- Bridging and staking are safer than ever, with stronger risk management making them foundational elements of DeFi.
- Bitcoin staking could unlock $100B in idle capital, potentially increasing DeFi TVL by over 50%.
- Innovations like restaking, perpetual DEXs, and real-world assets are rebalancing DeFi’s tradeoffs, unlocking more efficient ways to generate yield and scale the ecosystem.
We dive into these trends and more, highlighting everything you need to know. If you haven’t explored the full report yet, now’s the time. Check it out here:
In the news 🗞️
- Stablecoin market cap hits new all-time high of $234.8 billion. The stablecoin market cap hit $234.8B, driven by USDT ($143B) and USDC ($58B), with USDC growing faster. Despite regulatory challenges, adoption is rising, with major firms like PayPal and Bank of America exploring stablecoins, backed by the Trump administration’s pro-dollar stance.
- PancakeSwap achieves highest monthly trading volumes since 2021. The DEX recorded $81.9B in January and $78.7B in February, surpassing $1T in cumulative trading volume. Its multichain expansion across nine networks has fueled growth, though over 90% of volume remains on BNB Chain. Meanwhile, BNB Chain hit 517M unique users, benefiting from renewed momentum linked to Binance co-founder CZ.
- Solana votes to slash new tokens by 66% — but there are downsides. Solana’s community is voting on a proposal to reduce new SOL tokens by two-thirds, lowering inflation to 1.5%. While most votes are in favor, some worry it could hurt validator profits. Ethereum is also considering similar changes to balance rewards and sustainability.