CGV Research: PayFi Market Size Could Be 20 Times Larger Than DeFi’s By 2030
In Brief
CGV Research released a new study emphasizing PayFi’s potential to grow within the landscape of high-performance blockchain technologies.
Research team of the Asia-based crypto-focused fund of funds, CGV FoF, released a new study emphasizing the value of PayFi and its potential to grow within the evolving landscape of high-performance blockchain technologies. The study, titled “New Financial Cluster Revolution: Why PayFi Will Surpass DeFi by 20x” suggests that PayFi could accelerate the integration of payment and financial services, making cryptocurrencies more practical and efficient for everyday transactions as well as more complex financial operations.
PayFi or Payment Finance, initially introduced by Lily Liu, Chair of the Solana Foundation, represents a new technology and application model within the blockchain and cryptocurrency sector that combines payment capabilities with financial services. The core of PayFi centers on the processes of sending, receiving, and settling cryptocurrencies, rather than just facilitating basic transactions.
While Bitcoin successfully spearheaded the cryptocurrency revolution, its original goal as a medium for daily payments has not been fully achieved. According to the CGV Research team, further growth in the payment ecosystem will depend heavily on the development of financial instruments and financing mechanisms.
By utilizing the high-performance and low-cost transactions of advanced public blockchains, PayFi aims to exceed traditional financial systems and create a more liquid and adaptable global financial market. This reflects a return to Bitcoin’s original vision while also introducing innovations built upon its foundation.
Notably, the Time Value of Money (TVM) is a key concept in finance that highlights how the value of money changes over time. The core idea of TVM is that money today is generally worth more than the same amount in the future.
PayFi allows users to leverage the TVM in a highly cost-effective and efficient manner. By utilizing smart contracts and decentralized platforms, it enables users to manage and invest their funds directly without the need for intermediaries, thereby optimizing fund utilization.
PayFi At The Core Of RWA Integration And Future Market Trends
In contrast to some industry views that consider “PayFi as a sub-category within the Real World Asset (RWA) track,” CGV Research argues that RWA should be seen as a component of the PayFi ecosystem.
The firm notes that PayFi, RWA, and DeFi are no longer developing as separate financial systems but are instead interconnected and complementary, integrating real assets with on-chain financial services. In the future, PayFi is expected to play a crucial role in enhancing global asset liquidity, lowering transaction costs, and improving market transparency. According to Lily Liu, integrating RWA and institutional finance into on-chain liquidity pools to create a unified value chain represents a “new financial cluster.” This development could emerge as a major trend in the cryptocurrency market during this cycle.
At present PayFi is thriving on the Solana blockchain, due to its high performance, liquidity, and talent mobility. In particular, PayFi utilizes programmable payments to connect traditional financial systems with blockchain technology, enabling the scaling of credit finance through smart contracts, the research highlights. Among several key application areas for PayFi, CGV Research identifies cross-border payments and trade, supply chain finance, and consumer finance.
The study emphasizes that if PayFi were to capture just 10% of the global digital payment transaction volume by 2030—a conservative estimate—the market size for PayFi could reach $1.8 trillion, which is 20 times larger than the projected $87 billion size of the DeFi market. This suggests that PayFi holds considerable market potential and is likely to become a major player in the global digital payment industry.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
