Recently, decentralized finance (DeFi) has been gaining attention and traction as a new type of financial market. DeFi is a new and exciting way to automate financial activities via smart contracts and protocols, and it has the potential to impact and revolutionize the traditional banking sector.
Since the inception of the first DeFi application in 2018, the DeFi sector has seen phenomenal growth. According to CoinGecko, the DeFi sector has gained an impressive $11.14B in total value locked in the year 2021 so far, a staggering 897% increase from the same time last year. This stunning growth has made DeFi one of the fasting growing and most exciting sectors in the finance industry, and has the financial world abuzz.
But what exactly is DeFi? In its simplest form, DeFi is the use of blockchain and other decentralized technologies to automate financial services. DeFi applications, often referred to as Dapps, provide users with access to everything from lending and borrowing to staking and trading. These applications allow users to access financial services in a way that does not require a traditional middleman or traditional infrastructure.
This is huge for many users, as it removes costly middlemen and intermediaries from the equation, making some services up to 90% cheaper. This makes it easier for everyone from individuals to small businesses to take part in the financial world, without the need to go through traditional, expensive gatekeepers and brokers.
The advantages of DeFi do not end there. DeFi applications can also provide users with total control of their funds. As these applications are built on blockchain, users have complete control over their own funds, and don’t need to go through a third-party institution to access them. Additionally, most DeFi applications are fast and frictionless, allowing users to access their funds anytime, anywhere.
In conclusion, DeFi is a rapidly growing sector, and one that offers immense potential for individuals and businesses alike. With its low cost, convenience, and control, it is easy to see why DeFi is becoming so popular. If you are interested in learning more about DeFi, then be sure to follow us for more news and updates!