The crypto industry has seen a significant increase in capital inflow since the beginning of the year, according to a recent report by Binance Research, the research arm of the Binance digital assets exchange. The report states that the market is experiencing a resurgence, with decentralized finance (DeFi) being one of the major beneficiaries.

The report highlights that there has been a substantial influx of capital into DeFi, leading to a significant increase in the total value locked, which has risen from US$54.2 billion to US$94.9 billion since the start of the year, reflecting a strong 75.1% year-to-date rebound.

However, Binance Research also notes that the market valuation of DeFi has not yet seen a corresponding increase in on-chain liquidity. Despite this, almost all DeFi sub-sectors have witnessed notable growth in inflows.

The report emphasizes the importance of diversification in DeFi markets, stating that it is crucial for DeFi to meet its ambitious revenue forecasts, such as the projected US$231.2 billion by 2030. To achieve this, a diverse array of markets capable of unlocking new financial primitives is necessary, enabling users to maximize the value they derive from DeFi.

Among the DeFi sub-sectors, the liquid restaking sector has recorded the largest percentage growth in total value locked, followed by the yield market. The Collateralized Debt Position (CDP) sub-sector, however, has seen a slight decrease in the total value locked.

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