demarcate vs differentiate

demarcate and differentiate both are verbs.

Word	Noun	Adjective	Verb	Adverb
demarcate	No	No	Yes	No
differentiate	No	No	Yes	No

As verbs, differentiate is a hypernym of demarcate; that is, differentiate is a word with a broader meaning than demarcate:

Other hypernyms of demarcate include distinguish, secern, secernate, separate, severalise, severalize, tell, tell apart.

demarcate (verb)	differentiate (verb)
set, mark, or draw the boundaries of something	become distinct and acquire a different character
separate clearly, as if by boundaries	become different during development
	evolve so as to lead to a new species or develop in a way most suited to the environment
	calculate a derivative; take the derivative
	mark as different
	be a distinctive feature, attribute, or trait; sometimes in a very positive sense