The answer to that question lies on the surface: the DeFi sector is going forward so fast everyone looking is getting blown away!
At this very moment, the total value locked (TVL) in DeFi is at a new all-time high just shy of $55B. Putting this in the context of mainstream finance giants, Square’s market cap is currently $112B, PayPal’s is $308B, MasterCard’s is $380B, and VISA’s is $499B.
This is tremendous news for all involved in the DeFi market! Looking back at late 2020, the $25B threshold seemed like an insurmountable obstacle! Even in January, experts were so conservative, the wildest estimates spelled $50B or $100B by the end of the year… Well, now it seems the $100B mark is easily achievable by early summer of this year!
These figures perfectly demonstrate why everyone who is observing the cryptosphere can’t but notice how rapidly it is developing in comparison with the traditional economy with its principles that have stayed the same throughout thousands of years. In 2008, Bitcoin got in the game, and it was a landmark event. Today, 12 years later, BTC is no longer considered state-of-art. More advanced projects working on blockchain technology are emerging — fast, smart, reliable, and easy to use even for newbies. Let’s see why the decentralized finance market is one of the most exciting areas today.
The goal of decentralized financial platforms is to completely overhaul the traditional system of monetary transactions in the most open and seamless manner possible. Many are fascinated by this area because of the ability to create and launch censorship-resistant products, as well as because of the interesting and promising technology that opens up a huge scope for experimentation.
DeFi is sometimes referred to as “LEGO money” for its modularity. By connecting different decentralized applications, you can create completely new projects, simultaneously increasing their user-friendliness, and maximizing your profit.
Why is DeFi innovation so important? Above all, decentralized finance thrives in settings without regulatory oversight. This ensures complete protection of personal life. One of the main challenges on the way to global blockchain development is the hostile environment of outdated laws and regulations, and some DeFi projects have already failed because of this. Credefi has a higher goal in DeFi, and aims to reform the modern industry: we are creating a system that will be transparent, reliable and easy to use. Credefi is bridging the gap between traditional finances and DeFi, by using the world’s available computing to power a more decentralized, sustainable and connected world!