![]() We have yet to see the Bloomberg or Robinhood of crypto emerge. This being said, there is still a long way to go. We are witnessing not only the formation of a new financial center but also the formation of a new economy, new careers and new enterprises. Related: GameStop saga reveals legacy finance is rigged, and DeFi is the answer The adoption of DeFi signals a shift away from traditional institutions as large communities flock to build on something different: the decentralized infrastructure of Web 3.0. We are seeing this play out in fintech, with trading apps coming under scrutiny over the GameStop trading story. Zooming in on the legacy internet, we see Web 2.0’s centralization, surveillance and intrusion giving power to a small minority. DeFi is eating their lunch, a prime example of what crypto was designed to do, cut out the intermediary, and the conditions are ripe for innovation.ĭeFi would not have been possible with the internet as we knew it. ![]() Users can now become market makers, cutting out intermediaries and giving centralized exchanges a run for their money. These automated market makers are empowering individuals by allowing them to trade without the overhead of centralized exchanges and by allowing them to participate in liquidity pools. This will only continue to happen as we see more and more centralized finance flip onto blockchains.įor example, Uniswap and Curve are quickly rivaling the volume on top exchanges. DeFi is on the brink of breaking into the mainstream as we see more institutional investors getting involved in the space. The numbers are impressive and ever-increasing. Related: Was 2020 a ‘DeFi year,’ and what is expected from the sector in 2021? Experts answer The largest projects in the DeFi space all boast impressive stats: The MakerDAO project has issued over $1.5 billion in Dai Compound currently has $5.8 billion of assets earning interest across nine markets and Uniswap has processed a lifetime volume of $51.7 billion. And there are now over 230 decentralized applications, with innovative new projects announced on a daily basis. Monthly decentralized exchange volume is up to $30 billion. Without this, DeFi would not be possible - I am of course talking about the infrastructure that underpins the decentralized internet, or Web 3.0.Īt the time of writing, loans outstanding in DeFi are up 22x from $150 million last year to almost $4.5 billion today. ![]() This cocktail of factors, coupled with the glitz and glam of DeFi, is the result of the true, silent hero that is enabling this tsunami of capital to flow around. Whether we like it or not, the record-high token prices will also attract the attention of mainstream media and Wall Street. That’s up from $600 million in January 2020 - a 4,300% increase.Īs with all nascent technology, new money flowing into a sector attracts talent, innovation and the best entrepreneurs. The DeFi market cap has reached $45 billion, and there’s over $28 billion total value locked in DeFi today. The swapping, stakingand yield farming successes have been well touted. And DeFi is a symptom of the real shift from centralized services to decentralized.ĭecentralized finance has exploded over the past 12 months. We are at a pivotal moment in the history of the internet.
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