DeFi projections for 2022
As we can see from the graph, last year was an enviable year. 231 billion dollars have been invested in the cryptocurrency market, and it appears that this is just the beginning.
Cardano promises a real “explosion” of DeFi projects this year: https://www.cardanocube.io/collections/defi
According to Sidney Powel, DeFi is on the rise this year: “We’re about to see a big boom of institutional credit flows into the digital economy. DeFi will hit the mainstream in 2022, knowledge will compound, institutional sentiment will continue shifting in favour of crypto, and the strengths of DeFi and TradFi will converge”.
Today, DeFi projects operating on the Ethereum blockchain lead with 64% of the market, but this marks a loss of more than 30% compared to the 95% share at the beginning of last year’s DeFi market pie. Success has also been the cause of this blockchain’s current sinking.
The NFT boom in the summer further highlighted the problem of gas fees. If the update is delayed, we will see even higher leakage to other blockchains. With competitors such as Solana (6%), Binance Smart Chain (10%), and Terra (5%), Ethereum cannot be considered safe.This year will show who is who. I am betting on Ethereum’s competitors.
It is hard for us to comprehend that 1.7 billion people in the world do not have a bank account and cannot control their finances. DeFi removes the need for central banks, financial institutions, and other third parties. This means that users can carry out financial transactions in minutes or seconds, using decentralized financial applications, without paying the fees that banks and other financial companies for using their services. Anyone with an internet connection can trade digital assets, lend and borrow cryptocurrencies using software that records and verifies financial transactions in distributed financial databases.
The value of AAVE represents 9% of Swedbank’s total value.
The bank has 153 branches, with operations in Sweden, the three Baltic countries, and representative offices in other countries. It was founded 200 years ago, but how much can it grow compared to a global AAVE? I won’t even guess how many employees work in all Swedbank branches combined, but AAVE has 64 employees as of January this year. No one is arguing that DeFi doesn’t offer everything that traditional banks do, but I see many more advantages to DeFi. And this is a big threat to banks. The only disagreement is when they will be outcompeted. That it is a matter of time, replied 89% of respondents in 2020.
#DEFI #CARDANO #ETHEREUM #FINANCES