Introduction to PayFi
The latest analysis by Gate Research Institute, titled “Beyond DeFi Summer: Is PayFi Summer Coming?“, delves into the burgeoning sector known as on-chain payment finance, or PayFi. This development signifies a departure from the highly speculative nature of DeFi Summer in 2020. Instead, PayFi is characterized by its emphasis on the time value of money and aims to address real-world payment challenges, seeking to create enduring value through strategies like interest-bearing payment tokens and Real-World Asset (RWA) financing.
Factors Fueling PayFi Growth
A key factor fueling the growth of PayFi is the widespread adoption of stablecoins, which are projected to exceed a total global circulation of $240 billion by June 2025, outpacing transaction volumes from major players such as PayPal and Visa. Moreover, the evolution of global regulatory frameworks—evident with initiatives like the Hong Kong Stablecoin Bill and the U.S. GENIUS Act—coupled with technological advancements and attractive economic incentives, bolster PayFi’s potential.
Future Outlook for PayFi
Gate Research Institute foresees that PayFi’s emergence will not mirror a fleeting speculative bubble, but rather represent a sustained evolution in payment infrastructure, backed by strategic investments aimed at catering to everyday users. Concurrently, the institute reported new on-chain data for June 2025, revealing that Ethereum has regained its status as the leader in transaction fees, fueled by significant liquidations. Additionally, there is a noticeable trend of institutional adoption on the Bitcoin blockchain, while the SEI network has rapidly gained traction, influenced by factors such as price movements, regulatory developments, and community engagement.
