DeFi Llama said that the total locked-in value, or TVL, in decentralized finance (DeFi) rose to over $ 250 billion by the end of 2021, with Ethereum as the most active. The emerging DeFi industry did not become popular until the summer of 2021.
While TVL’s estimates highlight the industry’s rapid growth, Cardano (ADA) founder Charles Hoskinson warned of the challenges DeFi faces. In a YouTube video titled “DApps and Cardano DeFi Alliance,” Hoskinson talked about the potential of DeFi and Cardano’s small role in the industry.
A long-term vision is needed between developers and creators, according to Hoskinson, who has been trying to transform traditional finance for a decade:
“It is very difficult to do this type of planning and do it right, with an eye for and predict the future. Unfortunately, there are many projects in this area that can not stand the test of time. It is a fact that over the next 5- The 10 years will witness a great extinction. ”
Related: DeFi can be 100 times more than today in 5 years
Although he believes that 2022 will be a “landmark year” for both industry and Cardano, “there is still a lot to do”, especially when it comes to certification standards, DApp’s production quality and safety. He pointed to nearly $ 10.5 billion in losses from hacker attacks, fraud and theft in the sector in 2021 alone.
Although the crypto-society is considered “the creator of the genes for finance and the fate of mankind’s financial operating system in the twenty-first century”, Hoskinson claims that “the only thing holding us back is who we are. If we quarrel with each other, insult each other and attack, all we do is harm our ability to steer the dialogue towards fruitful goals.
Related topics: Cardano ADA price rises 30% with potential triple bottom setting
During the session, Hoskinson talked about Cardano’s current plans, noting 127 projects under development and that the first half of 2022 will be “an important window for the commercialization and use of Cardano projects.” The number of users is expected to be ten times the current 2 million users due to the non-perishable coding revolution.
Hoskinson also introduced the Cardano DeFi Alliance, or CDA, to promote collaboration between developers. He hopes Cardano will move from a manager to a fully-fledged open source platform that can embed hundreds of other projects in the industry.
ADA Cardano was one of the best cryptocurrencies in the first half of 2021. Despite the support of a strong community, Cardano has been criticized for its slow progress and long development times. The network made a major breakthrough in September with the Alonzo steel fork, although there is still concern that real value from the platform is still around the corner.