Decentralised finance is booming, with transaction volume expected to top $3 trillion across the sector by next year.
That’s according to a new report by French fintech firm Next Generation NGPES, shared exclusively with DL News, which also predicts the total value locked across all blockchain networks to reach $500 billion in 2026.
Fundraising by DeFi-linked projects is projected to rise to $40 billion next year, up from about $20 billion in 2025, reflecting “capital injections from token sale fundraising and venture capital” aimed at expanding infrastructure, user bases, and product lines, the company told DL News.
‘Hybrid’ finance to double
The Paris-based firm expects a hybrid model to emerge, where banks and traditional firms deploy DeFi smart contracts for settlement and yield, and “remain a core driver” for continued adoption, the report said.
Next Generation expects the number of these hybrid projects involving major international banks to at least double in 2026 as regulatory clarity spreads across Europe, the US, Africa, and Asia-Pacific.
Real-world adoption
The firm forecasts that real-world asset tokenisation will grow from $1.1 trillion now to $2 trillion next year, highlighting how traditional markets are converging with blockchain finance.
Tokenisation is the process of converting traditional financial assets, such as stocks, bonds, and commodities, into tradeable tokens on a blockchain network.
When asked which sectors would lead this growth, Next Generation cited tokenised funds, stocks, real estate, corporate debt, and money market funds.
These instruments, it said, will “create the bridge between traditional finance and DeFi,” bringing stable, yield-bearing assets onchain and improving liquidity for both institutional and retail participants.
By mid-2026, DeFi wallets are expected to reach 12 million, but the firm cautioned that only 25-35% will be unique active users, with the rest linked to short-term farming and automation.
Still, Next Generation believes the industry is “stabilising in a more data-driven, utility-focused way,” signalling a maturing market structure.
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at [email protected].
