The decentralized finance (DeFi) sector is projected to experience substantial growth in 2026, with platforms like Aave, Morpho, and Maple expected to expand eightfold. Real-world asset (RWA) tokenization has reached $16.7 billion, driven by initiatives such as BlackRock's BUIDL and gold-backed tokens. Decentralized exchange (DEX) volumes have grown to 18.7% of centralized exchange (CEX) volumes, with Hyperliquid facing increased competition. Prediction markets are also seeing unprecedented activity, with Polymarket and Kalshi setting new records. Meanwhile, BNB Chain has surpassed Solana in DEX activity. However, the market's fear and greed index remains volatile, highlighting systemic risks, particularly from composability issues exposed by Stream Finance.