Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released a new decentralised finance (DeFi) report highlighting key developments in the sector.

The report points to real-world assets (RWA) and decentralised exchanges (DEXs) as emerging drivers of growth.

In contrast to the speculative surge seen during the DeFi Summer of 2020, the current market is being shaped by institutional adoption and the rise of utility-driven applications.

DeFi’s institutional momentum

Bybit’s report highlights a growing wave of institutional participation in DeFi, driven by increasing regulatory clarity through developments such as the GENIUS Act and Circle’s IPO.

The broader adoption of stablecoins has further facilitated DeFi’s integration with traditional finance. Lending platforms such as Aave, Morpho, and Maple Finance have seen total deposits rise to $67.8 billion.

At the same time, real-world asset (RWA) platforms including Securitize, Ondo Finance, and Franklin Templeton are offering yield products backed by US Treasuries, creating a bridge between crypto and conventional investing.

Sector divergence

Despite the progress in RWAs and DEXs, other segments of DeFi have underperformed.

Interest in AI-related DeFi (DeFAI) tokens has declined, while growth in liquid staking remains limited due to persistent token volatility.

DEXs compete with centralised exchanges

Decentralised exchanges are increasingly matching the scale of centralised platforms.

Hyperliquid, for instance, has recorded $1.27 trillion in perpetual futures trading volume so far this year.

This growth has prompted the rise of hybrid models like Byreal, which aim to combine the liquidity of centralised exchanges (CEXs) with the transparency of DeFi protocols.

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