The DeFi sector is gearing up for another explosive growth phase, with transaction volumes expected to exceed $3 trillion in 2026, according to a new report by French fintech firm Next Generation (NGPES) shared with DL News.
The company forecasts that Total Value Locked (TVL) in DeFi could reach $500 billion, while the real-world asset (RWA) market may double to around $2 trillion next year. Analysts attribute this momentum to the rise of hybrid finance models and the tokenization of traditional assets, which they see as the main drivers of expansion.
The rise of hybrid finance
According to the report, traditional banks and financial institutions are beginning to integrate DeFi smart contracts into settlement and yield strategies. These hybrid systems, NGPES notes, will remain key catalysts for mainstream DeFi adoption in 2026.
The firm expects the number of such partnerships with international banks to double as regulatory clarity improves across Europe, the U.S., Africa, and the Asia-Pacific region.
Tokenization as the growth engine
NGPES analysts predict that the tokenized asset market (RWA) will grow from $1.1 trillion to $2 trillion by 2026 — signaling the gradual convergence of traditional finance and blockchain ecosystems.
Tokenization converts conventional assets — such as equities, bonds, and commodities — into blockchain-based tokens that can be traded globally. The fastest-growing categories, according to the report, will include tokenized funds, equities, real estate, corporate bonds, and money market funds.
“These instruments act as a bridge between TradFi and DeFi, bringing stable yield-bearing assets on-chain and increasing liquidity for both institutional and retail investors,” the report states.
DeFi maturity and user growth
By mid-2026, NGPES expects the number of DeFi wallets to reach 12 million, though only 25–35% will be active unique users. The rest are likely to be short-term yield farmers or automated accounts. Despite this, the report suggests that the industry is maturing into a more analytical and utility-driven phase, signaling stabilization and reduced speculative volatility.
The forecast aligns with recent data from major crypto institutions. In June 2025, Coinbase reported a 245× increase in the RWA sector’s capitalization to $21 billion, driven largely by private credit and government bonds. In October, Standard Chartered projected the tokenized asset market to reach $2 trillion by 2028, comparing its scale to the stablecoin segment.
Earlier, Binance Research recorded a record RWA market cap of $12 billion in 2024, while Real Vision analyst Jamie Coutts forecasted a surge to $1.3 trillion by 2030.
The road ahead
Experts agree that real-world asset tokenization will play a crucial role in merging DeFi with traditional finance. The next growth wave, they say, will be powered by the expansion of RWA infrastructure — though challenges around cybersecurity and smart contract resilience still remain.
Meanwhile, Chainalysis CEO Jonathan Levin noted that DeFi platforms continue to overlook cybersecurity, exposing multiple potential vulnerabilities across protocols.
