Decentralized Finance (DeFi) has taken the crypto world by storm over the past year, as 2020’s “Summer of DeFi” propelled many projects and tokens into the spotlight. Now, with record amounts of value locked in Ethereum-based DeFi platforms and a multitude of top-performing DeFi tokens showing incredible price action, it seems only fitting that we bring you this DeFi token review. It’s time to reflect on the progress made in the DeFi space and see just how far this industry has come in such a short time. Furthermore, we want to look to the future and see how DeFi is set to disrupt the legacy financial system.
Blockchain-driven innovation is heating up. However, Bitcoin is still the elephant in the room when it comes to discussing crypto with the average person. In terms of sheer brand recognition, it always wins hands down. However, there are more interesting things going on right now in the crypto space, and one of them is Decentralized Finance or DeFi.
One of the many fields of the economy that is ripe for disruption by the blockchain is the finance field. Virtually every part of the finance industry that traditional finance companies operate in is under threat from the blockchain. Over the last few months, the DeFi space market cap has risen dramatically, and this trend is set to continue over the coming years.
The finance industry is one of the most important in the world, and many may take it for granted. In fact, some may assume that nearly everyone in the world has a bank account and is connected to a bank. This, however, is a false assumption. In fact, nearly a fourth of the population remains “unbanked” - without access to existing financial infrastructure. According to a recent report from the World Bank Group, approximately 1.7 billion people worldwide still do not have any connection to a bank whatsoever. There is, nevertheless, a light at the end of this tunnel. The solution to this problem? Well, it could well be that of Decentralized Finance, or “DeFi”.
Decentralized finance (DeFi) continues to make waves in the crypto space with $7.22 billion in total value locked in, according to DeFi Pulse. Amazingly, over $6 billion of those funds have entered the market since June 2020! And throughout this year, DeFi continues to be the prime-mover driving the upcoming bull market.