How Gate. fai is Evolving Amid DeFi’s Rise

Decentralized finance ( DeFi ) is gaining momentum, as the sector adapts to evolving market conditions and technological capabilities.

After significant volatility in recent years, DeFi’s market share in cryptocurrency trading has grown from 0.33 % in 2020 to 11.91 % in 2024, according to researchers for crypto platform Gate. dai.

Speaking to , Gate. dai researchers pointed to growing regulation quality, layer-2 solutions, modern protocols, administrative curiosity and international economic instability as key drivers of the rise in fascination in DeFi. They also highlighted the importance of 2020’s” DeFi Summer” as a teaching experience, arguing that the business may focus on “real-world power and strong infrastructure” over theoretical gains.

Software development and DeFi facilities

According to Gate. io’s experts, the trading software landscape has evolved greatly since 2020’s” DeFi Summer”. With projects like Compound introducing novel key supply mechanisms that sparked widespread involvement in DeFi protocols, cash mine and produce gardening experienced unprecedented growth during this time.

Today, the sector’s total value locked ( TVL ) of$ 120 billion represents 3.5 % of the total crypto market cap, with established protocols demonstrating sustained usage. In contrast to standard game systems like Roblox’s 80 million people, key metaverse platforms like Decentraland and The Sandbox struggle to maintain even a couple thousand daily active users, according to the researchers.

Established markets have evolved to bridge the gap between consolidated and distributed financing as the DeFi habitat has matured. Gate. From a simple bitcoin exchange established in 2013 to a powerful software with DeFi features, Io has changed.

Through its Gate Web3 software, users can access decentralized services including key swaps and cross-chain exchanges, while maintaining the security advantages of unified system. The platform further facilitates DeFi participation through Gate Startup, which helps launch and incubate new blockchain projects, contributing to the ecosystem’s growth.

Innovation and security

According to the researchers, the evolution of DeFi technology has also resulted in significant improvements to security infrastructure, with a dramatic decline in successful exploits over the past year being attributed to more thorough, smart contract audits and improved security practices. Platforms are putting in more and more comprehensive security measures in place to safeguard user assets while maintaining DeFi’s attractiveness.

Gate. io exemplifies this industry-wide emphasis on combining innovation with security. The 100 % Proof of Reserves system makes use of open-source Merkle tree solutions combined with third-party audits, enabling users to independently verify deposited assets. The platform’s Gate SAFU ( Secure Asset Fund for Users ) also provides additional protection through transaction fee income, while multilayered safeguards protect users during login, transactions, and withdrawals. These security features work alongside the platform’s technical capabilities, including cross-chain transfers and dapp integration, to create a secure environment for DeFi activities.

This concern for security extends to Gate. Additionally, automated systems monitor suspicious activities while maintaining effective transaction processing, is part ofio’s trading infrastructure. The platform’s approach reflects the movement of the wider DeFi sector toward combining robust security measures with technological advancement, addressing two crucial requirements for widespread adoption.

Strategic investment and real-world asset integration

With recent investments, including Pencils Protocol, which concentrates on offering auction and yield aggregation services for both blockchain-native and real-world assets ( RWAs ), Gate Labs actively supports DeFi innovation. The investment supports security auditing, community development, and technical infrastructure, incorporating zero-knowledge technology on the Scroll network.

This RWA integration represents an expanding area of focus—most banks continue to rely on the 50-year-old SWIFT system for international transfers, with minimal innovation in core infrastructure. DeFi protocols can process transactions 24/7 with little overhead, opening up opportunities for platforms bridging centralized and decentralized finance, while traditional banks have expensive back offices and limited operating hours.

Future outlook

Recent data shows growing comfort with decentralized trading, as the DEX-to-CEX spot trading volume ratio has risen from less than 10 % in 2023 to 13.92 % in 2024, the researchers reported. This growth has been particularly notable in long-tail assets and new token launches, where DEXs ‘ permissionless nature offers significant advantages over centralized platforms. The rapid development of layer-2 solutions has also increased adoption by lowering transaction costs and enhancing processing speeds, making DeFi more accessible to common users.

Crypto platforms like Gate are among the ones whose market share is projected to increase to 10 % in the next two years thanks to market analysts. io are poised to meet the growing demand, through developing trading infrastructure, Web3 capabilities, educational resources, and investment in emerging protocols.