According to a report by Gauntlet, DeFi sectors are primarily dominated by a few major projects.
As reported by Bloomberg, the report identified 12 sectors, including decentralized exchanges (DEX), lending protocols, yield farming, profitability aggregators, derivatives, cross-chain solutions, bridges, algorithmic stablecoins, support services, liquid staking, synthetic assets, and other services.
The analysis was based on data from the DeFi aggregator Llama and the Herfindahl-Hirschman index, which measures market concentration and competition (a higher score indicates a less decentralized market).
Among the 12 sectors, DEXs face the most competition, with the top four platforms controlling only 54% of the market.
Other areas, such as liquid staking, show even less decentralization, with the top four projects holding about 90% of the total assets in that category.