A Promising Year Ahead for Canadian DeFi Companies Amid Crypto-Friendly US Policies
The rise of a US administration with a favorable stance towards cryptocurrencies has set the stage for a promising year for decentralized finance (DeFi) companies. Two of Canada’s leading DeFi firms are already celebrating significant achievements in early 2024, indicating strong growth trajectories fueled by both domestic and international strategies.
DeFi Technologies: A Year of Remarkable Growth
Toronto-based DeFi Technologies announced impressive gains, with its assets under management soaring to $1.18 billion CAD by the end of 2024. This represents a substantial 132 percent increase over the previous year, and an astounding 900 percent rebound from the market low at the end of 2022. The firm attributes this bull run to strategic product enhancements, improved distribution channels, and a surge in investor interest in regulated digital assets.
In 2024, DeFi Technologies made pivotal acquisitions to bolster its market presence. It acquired Stillman Digital, a liquidity provider, and expanded into AI-driven asset management through a majority investment in Neuronomics. These moves underscore the company’s commitment to innovation and diversification in the rapidly evolving DeFi sector.
WonderFi’s Strategic Expansion and Revenue Growth
Another Toronto-based crypto firm, WonderFi, reported that its revenues more than doubled in 2024, reaching $62.1 million—a significant 108 percent increase. The company’s growth was bolstered by a 109 percent surge in client assets under custody at its exchanges, Bitbuy and Coinsquare, totaling $2.1 billion. Additionally, WonderFi’s in-house crypto platforms managed nearly $3.6 billion in trading volume throughout the fiscal year, marking a 28 percent increase from 2023.
WonderFi’s expansion strategy included acquiring clients from Bitstamp, a Luxembourg-based crypto exchange owned by Robin Hood, which exited the Canadian market last year. Further growth was achieved through the purchase of FX Institutions, facilitating WonderFi’s expansion into Australia and the Asia-Pacific region. Meanwhile, Kraken’s Canadian division also reported exceeding $2 billion in assets under custody by November 2024.
The year wasn’t without challenges; notably, WonderFi CEO Dean Skurka was reportedly kidnapped and held for ransom in November, highlighting the unpredictable risks in the crypto industry.
Market Optimism and Future Prospects
The overall DeFi and cryptocurrency markets experienced a prosperous year. Although prices had been climbing earlier in 2024, Donald Trump’s victory in the US presidential election in November added momentum, leading to a price surge in Bitcoin, Ethereum, and other virtual currencies. Trump’s campaign promises included more crypto-friendly policies, such as discussions about creating a “Strategic Bitcoin Reserve,” albeit with some skepticism regarding its practical utility.
Looking ahead, both DeFi Technologies and WonderFi remain optimistic about 2025. DeFi Technologies projects its revenue to potentially reach $227.2 million, citing the possibility of proportional revenue increases. While WonderFi has not provided specific forecasts, it has already begun expanding its offerings. In January, the company acquired Blade Labs’ Solana-related technologies, launched the Wonder Wallet app in February, and announced plans to venture into derivatives trading with Eightcap in March.
Image courtesy of André François McKenzie via Unsplash.
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