The past year has seen the cryptocurrency industry, and specifically the decentralized finance (DeFi) sector, evolve rapidly. The potential for programs and protocols to operate on the blockchain has enabled a range of financial services to become available – from lending and borrowing, to transactions and asset management.
DeFi has become increasingly popular in 2020 for those interested in the cryptocurrency and blockchain space, as it has become easier to access and use these types of services. A number of DeFi platforms have emerged and are allowing users to interact with the blockchain, allowing them to take advantage of various financial services without relying on traditional financial institutions.
Interest in DeFi is not only high among retail investors but institutional clients as well, as it provides them with a range of advantages. Without a central authority, participants can access a variety of services from multiple providers, lower fees and higher yields than traditional products. The trustless structure of DeFi also means that users can remain in full control of their funds and data, providing them with greater security and privacy.
2020 saw a dramatic increase in the amount of funds being invested into the DeFi space, with the total value locked (TVL) now standing at over $15 billion. Many of the most popular DeFi protocols are seeing high valuations, suggesting that the sector is here to stay. This year is also set to be a big year for DeFi as more protocols continue to enter the space and more projects come online, allowing investors and users to further benefit from decentralized finance services.
The past year has truly seen the DeFi sector stand out amongst the cryptocurrency industry, and its momentum is only set to continue in 2021. It is no secret that decentralized finance offers a range of advantages to those looking to take part in the cryptocurrency and blockchain space, and its popularity is only set to increase over the next year. As the technology evolves and more projects come online, users will be able to access a range of financial services through the blockchain, leading to further investment and development in the DeFi space.
It’s an exciting time for the DeFi sector, and we will be sure to keep you posted on the latest developments as we move further into 2021. Make sure you follow us for all of the latest updates from the world of decentralized finance.