The decentralized economy has grown significantly over the past twelve months. Swap, betting and reverse farm are well advertised. DeFi’s market cap has reached $ 45 billion, and the total value of DeFi today is over $ 28 billion. That’s an increase of $ 600 million in January 2020 – an increase of 4,300%.
As with all new technologies, the flow of new money into the sector attracts talent, innovation and the best entrepreneurs. Like it or not, the record high prices of tokens will capture the attention of Wall Street mainstream media. This combination of factors, combined with the glamor and glamor of DeFi, is the result of a truly calm hero allowing this tsunami of capital to flow around him. Without this, DeFi wouldn’t have been possible – I’m of course talking about the infrastructure behind the decentralized internet, or Web 3.0.
At the time of writing, DeFi’s outstanding debt has increased 22 times from $ 150 million last year to nearly $ 4.5 billion today. The monthly volume of the decentralized exchange reaches $ 30 billion. There are currently over 230 decentralized apps and new innovative projects are announced daily. All the biggest projects in the DeFi room have impressive stats: MakerDAO has released over $ 1.5 billion in Dai; The complex currently has $ 5.8 billion in interest-bearing assets in nine markets; Uniswap reported a lifetime value of $ 51.7 billion.
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The numbers are staggering and growing. DeFi is about to become mainstream as we see more institutional investors participate. This will only happen when we see more and more central economies integrating blockchains.
For example, Uniswap and Curve are quickly competing for volume on the leading exchanges. Automated market makers are empowering people by allowing them to trade without incurring the overheads of centralized exchanges and by allowing them to participate in liquidity pools. Users can now become marketers, eliminate middlemen, and enable centralized exchanges to make their money. DeFi is having lunch, a good example of what cryptocurrency is designed for, excluding brokers, and the terms for innovation are ripe.
Decentralized Infrastructure and DeFi
DeFi wasn’t possible with the internet as we knew it. As we approach the ancient internet, we see centralization, surveillance, and the conquest of Web 2.0 that powers a small minority. We see this game at fintech as the trading apps are checked in GameStop’s trading history. DeFi accreditation signals a departure from traditional institutions as large societies flock to build something else: a decentralized Web 3.0 infrastructure.
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We are not only witnessing the formation of a new financial center, but also the formation of a new economy, new professions and new institutions. However, there is still a long way to go. We haven’t seen either Bloomberg or Robinhood of crypto emerge yet. I am excited to see more and more Web 2.0 developers migrating to Web 3.0 from companies they previously worked in with centralized systems, selling data or serving advertisements to users. The web 3.0 infrastructure that Ethereum, IPFS, and more gives you developers the power to build the decentralized infrastructure they know will always be in place, with an emphasis on the usability and user interface of their applications.
Web 3.0 is the future
I believe blockchain is an integral part of the future of the internet. This is the basis on which these new ideas will be built. We have only scratched the surface of the possible. Business models that can only exist in the blockchain will emerge, providing opportunities for people who will never have the opportunity to earn a living. There won’t be a single point of error in this decentralized future with blockchain support.
Ethereum has clearly been the main activator for DeFi, at the forefront of Web 3.0 development. The Electric Capital report states that “Ethereum has four times more developers than any other crypto ecosystem,” and that about half of all the decentralized apps active in the market rely on the Ethereum network. I believe Ethereum will remain the largest ecosystem thanks to scalability solutions as well as two other levels. Compliance will continue in Ethereum, making it difficult for others to compete, and ERC-20 tokens are likely to remain the standard across the ecosystem.