A million down, a billion to go: How does DeFi reach mass adoption?
A report this weekend claimed that DeFi has reached a million users, but the emerging financial vertical has a long road to travel towards widespread success. A report on Friday from Ethereum metrics website Dune Analytics showed that the decentralized finance (DeFi) ecosystem now counts over 1 million unique Ethereum addresses as participants — an over tenfold increase from the 91,000 addresses on Dec. 6, 2019. But while the growth has been undeniable, some experts caution not to interpret the milestone as a sign of widespread adoption. In fact, in order for DeFi to truly break....
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The DeFi industry must address scalability, liquidity and gas issues before serving more users, said Eric Chen, CEO and co-founder of Injective Labs. While decentralized finance (DeFi) token prices may be going down, new forms of utility like liquid staking are on the rise and some believe that more people may be drawn to DeFi as more institutions jump into the fray.According to Eric Chen, CEO and co-founder of Injective Labs, while the DeFi sector has witnessed massive growth since 2020, there are still issues to solve such as gas fees, scalability and liquidity. Chen said that the entire....
From reversible transactions to increased regulation and a rising tide of censorship, mass adoption is going to make crypto look more like the systems we’re trying to escape. For years, mass adoption has been pitched as the endgame of crypto. We’re supposed to envision a world where we can pay for our morning coffee with stablecoins and put mortgages on-chain to be used as collateral in decentralized finance (DeFi). In a world in which crypto has become mainstream, prices would likely reach all-time highs, but at what cost?Concessions inevitably would be made to meet consumer expectations....
Bitcoin is the most secure network in human history. Without the security and immutability unique to Bitcoin, DeFi will never achieve mass adoption.
Decentralized finance (DeFi) reached over $150 billion in total value locked (TVL) in the last year. Despite this exceptional increase in TVL (from under a billion at the start of 2020), the number of users that interact with DeFi still pales in comparison with how many people invest in the rest of the crypto market, and these numbers are a drop in the bucket compared to those posted by traditional finance. DeFi’s TVL is only a fraction of the two trillion dollar valuation of the entire crypto market. Furthermore, the entire crypto market is valued at a figure smaller than just one....
On-chain liquidity was the catalyst of DeFi Summer 2020, but what will lead the DeFi markets to hit a trillion dollars within another year or two? In mid-February 2020, the total value locked within decentralized finance (DeFi) applications first exceeded $1 billion. Fueled by the DeFi summer of 2020, it wouldn’t even take a year before it multiplied 20-fold to reach $20 billion and only another ten months to reach $200 billion. Given the pace of growth so far, it doesn’t seem outlandish to imagine the DeFi markets hitting a trillion dollars within another year or two.We can attribute this....