“DeFi has emerged on the other side of a three year bear market with new faces, new ideas, and a new meta. In this report, we offer you a comprehensive briefing on the themes we believe will dominate the narrative in 2024.”
Top 3 Key Takeaways
- EigenLayer emerges as a protocol reshaping the staking paradigm. Going beyond Ethereum’s security, EigenLayer greatly extends the utility of staked ETH.
- UniswapX and other intent based apps will break DEXs out of their growth plateau.
- Scalability advancements through rollapps and UX improvements from next-gen wallets will make DeFi more viable for end users.
Key Takeaways
- The year was plagued by widespread lethargy as rising interest rates muted on-chain activity. New projects, tokens, or designs, struggled to attract fresh capital and generate excitement, and fundamentals were largely disconnected from price. DeFi made significant progress in the decentralized perps sector, but these improvements failed to carve out market share from CEXs. Heading into 2024, the positive energy is palpable. There is volatility on the horizon and a slew of potential catalysts.
- Theme #1: Competition Between LSDs and the Restaking Economy
- Ethereum staking saw significant growth in 2023, primarily driven by the Shapella upgrade, which allowed for withdrawals from the Beacon Chain.
- Lido’s domina