In late 2019, decentralized finance (DeFi) began its rise to the forefront of the cryptocurrency and finance world. Since then, the steady increase in DeFi projects and related robotics has brought with it the potential to revolutionize how digital currencies are used, stored, and invested.
Today, it’s safe to say that DeFi is here to stay. And for good reason too. Decentralized finance is just that – financial technologies that remain completely accessible and open to users, regardless of location or background, by utilizing cryptographically secure protocols. This gives users the ultimate control of their funds and allows for maximum financial autonomy.
In 2021, DeFi has skyrocketed to new heights, with the total monthly value locked even reaching as high as $60 billion, a 25-fold increase since late 2020. This meteoric rise in DeFi has encouraged a host of traditional financial institutions to move beyond the familiarity of the current centralized model in order to explore the potential of decentralized finance.
But with the new year rapidly approaching, there is much more work to be done to fully realize the potential of DeFi and satellite technologies. That’s why the focus of 2021 should be on advancing and educating the public on the advantages of a decentralized economy, and exploring innovative ways that further harness the potential and power of DeFi.
As an expert in decentralized finance, it’s clear that this new financial system has the potential to revolutionize how we manage and interact with our money. This year will likely see the widest adoption of DeFi products we’ve ever seen – from everyday micro-savings and investments, to the more complex industry-level scenarios.
The possibilities of a decentralized economy are nearly limitless. For example, DeFi has and will continue to enable new forms of lending, by-passing 3rd parties such as banks and providing better yields and rates to those who lend out their funds. We could also see DeFi making a major impact in the world of equity trading, with the rapid digitization of companies being enabled and facilitated.
Ultimately, the focus for 2021 should remain on further educating the public about the advantages of DeFi, and exploring innovative ways that harness its power. With the meteoric rise in DeFi, it’s no surprise that traditional financial institutions are beginning to explore the technology. However, current DeFi products remain misunderstood and misutilzed, and there’s still much work to be done to bring the technology to its full potential.
Ultimately, with the full realization of DeFi, we could be on the cusp of a new economic revolution enabled by the decentralized economy. As we transition into 2021, be sure to stay up to date on all the latest news on DeFi and decentralized finance. Follow us for more insights and perspectives on the potential of this financial revolution.