Where Is DeFi Heading?
The ongoing bearish pressure affecting the cryptocurrency markets has temporarily dampened decentralized finance. Even so, there is still plenty of DeFi industry momentum and much to look forward to. The future of the DeFi market still looks rather bright, and exciting developments are around the corner.
DeFi Is Still Holding Strong
When all cryptocurrency markets noted extensive bearish pressure, their prices started going down a slippery slope. Unfortunately, that also affected the Total Value Locked (TVL) of decentralized finance, pushing that metric to the low $80 billion mark. It is a steep decline from the $280 billion mark recorded in late 2021, but the overarching crypto industry trend has not been too promising.
With the markets now looking slightly more healthy, DeFi has successfully held its own during this tough period. The overall TVl has risen slightly again week over week, confirming interest in this industry has not diminished. Contrary to traditional finance, DeFi still provides passive revenue opportunities and does not require any intermediaries to achieve that goal.
In addition, there are still various opportunities in decentralized finance. When asked about the “next big opportunity for DeFi”, HyperDEX co-founder Suvi Rinkinen states:
“The next big opportunity within DeFi is likely related to filling the void left behind by some of the big players that recently collapsed (e.g. Celsius, BlockFi, etc.). The fact these entities amassed such a large investor base goes to show how big the demand for certain products they offered, such as fixed-income, really is. All this demand has to go somewhere. Once a new alternative platform proves that the same thing can be done in a transparent, and decentralized manner, the appeal to investors will be significantly higher.”
DeFi Projects Keep Securing Funding
One crucial pillar of ongoing decentralized finance interest is the funding DeFi projects and protocols continue to secure. Numerous companies have successfully secured capital to turn their vision into a tangible service or product.
Notable examples include:
- Aztec: private DeFi on Ethereum through zero-knowledge rollups. The team raised $17 million in Series A funding.
- MoHash: a decentralized finance protocol connected to real-world capital and liquidity for alternative assets in fast-growing economies. MoHash raised $6 million in seed funding for its venture providing sustainable and stable DeFi yields.
- Backd: a reactive liquidity DeFi protocol helping users increase utility and efficiency of assets. Backd secured $3.5 million in funding
Investors and VCs continue to focus on decentralized finance and the opportunities it represents. Moreover, there is tremendous untapped industry potential, especially where the bridging to real-world assets is concerned. With multiple projects easily securing millions of dollars in funding, it is safe to say that decentralized finance is still in a good position.
Furthermore, Justin Sun, the founder of the Tron blockchain, is confident more liquidity will shift to blockchain-based infrastructure. He hinted at how a decentralized stablecoin can succeed, but only if it reduces – or removes – the reliance on CeFi solutions. That will require broader cooperation with exchanges and other liquidity solutions, but it creates an appealing prospect to look forward to.
Industry Growth Continues Unabated
When people talk about decentralized finance, they will often look toward Ethereum, BNB Chain, and Solana for DeFi projects. However, other blockchain ecosystems note strong growth in this segment, with Cardano becoming home to an exciting and innovative project through Ardana. As the default DeFi platform for Cardano, Ardana specializes in optimal stablecoin-to-stablecoin trading.
Additionally, Ardana is home to the native dUSD stablecoin, an on-chain asset-backed currency. Furthermore, the team explores multi-chain bridges, including Elrond and NEAR Protocol. These bridges will enable free-flowing asset transfers and exploring new liquidity sources. The team also ventured into the world of initial stake pool solutions, providing substantial bonuses to users.
Another innovative solution can be found in HyperDEX, which aims to streamline the mainstream adoption of DeFi. It is an all-in-one investment solution where users can invest, deploy automatic trading strategies for others to invest in, and amplify their rewards. The platform also offers a fixed income solution on stablecoins and other crypto assets through Fixed Income Cubes.
Furthermore, HyperDEX offers other solutions DeFi novices and enthusiasts will be interested in, including variable returns by speculating on crypto asset prices. Other features are in the pipelines, including token swaps, liquidity pools, peer-to-peer lending, governance, NFTs, etc. Providing multiple DeFi solutions under one banner is a necessary gateway to bringing more mainstream users into the decentralized finance fold.
What Comes Next For DeFi?
There is much excitement behind the scenes of decentralized finance and for a good reason. Even though crypto markets have been mainly bearish, developers and enthusiasts commit their time and effort to build the next generation of decentralized finance products, protocols, and services. Despite recent incidents involving Celsius, Voyager, and other service providers, HyperDEX co-founder Suvi Rinkinen maintains a bullish industry outlook:
“The latest events haven’t diminished DeFi’s credibility at all. In fact, during these recent events, the DeFi protocols that had exposure to these entities were successfully liquidating posted collateral and operating exactly as planned. No halt on user withdraws, no downtime, just functioning as intended. This only proves the effectiveness of true DeFi protocols, as opposed to the centralized entities that are now largely insolvent and leaving countless individual investors devastated.”
Industry innovation is not linked to the prices of individual crypto assets or the performance of individual service providers, as the blockchain industry never sleeps. Moreover, the number of projects securing funding remains healthy, confirming the sector has more to offer for the foreseeable future.
HyperDEX Questions
What do you think is the next big opportunity for decentralized finance, and more importantly, how will it help improve the industry’s appeal among both crypto enthusiasts and onlookers?
DeFi has seen strong growth in 2021 and is holding its own despite a bear market for nearly all of 2022 so far. There have been various incidents involving big companies like Celsius and Voyager. Has this diminished DeFi’s credibility or are they necessary growing pains of a maturing industry?
The post Where Is DeFi Heading? appeared first on .
The ongoing bearish pressure affecting the cryptocurrency markets has temporarily dampened decentralized finance. Even so, there is still plenty of DeFi industry momentum and much to look forward to. The future of the DeFi market still looks rather bright, and exciting developments are around the corner.
DeFi Is Still Holding Strong
When all cryptocurrency markets noted extensive bearish pressure, their prices started going down a slippery slope. Unfortunately, that also affected the Total Value Locked (TVL) of decentralized finance, pushing that metric to the low $80 billion mark. It is a steep decline from the $280 billion mark recorded in late 2021, but the overarching crypto industry trend has not been too promising.
With the markets now looking slightly more healthy, DeFi has successfully held its own during this tough period. The overall TVl has risen slightly again week over week, confirming interest in this industry has not diminished. Contrary to traditional finance, DeFi still provides passive revenue opportunities and does not require any intermediaries to achieve that goal.
In addition, there are still various opportunities in decentralized finance. When asked about the “next big opportunity for DeFi”, HyperDEX co-founder Suvi Rinkinen states:
“The next big opportunity within DeFi is likely related to filling the void left behind by some of the big players that recently collapsed (e.g. Celsius, BlockFi, etc.). The fact these entities amassed such a large investor base goes to show how big the demand for certain products they offered, such as fixed-income, really is. All this demand has to go somewhere. Once a new alternative platform proves that the same thing can be done in a transparent, and decentralized manner, the appeal to investors will be significantly higher.”
DeFi Projects Keep Securing Funding
One crucial pillar of ongoing decentralized finance interest is the funding DeFi projects and protocols continue to secure. Numerous companies have successfully secured capital to turn their vision into a tangible service or product.
Notable examples include:
- Aztec: private DeFi on Ethereum through zero-knowledge rollups. The team raised $17 million in Series A funding.
- MoHash: a decentralized finance protocol connected to real-world capital and liquidity for alternative assets in fast-growing economies. MoHash raised $6 million in seed funding for its venture providing sustainable and stable DeFi yields.
- Backd: a reactive liquidity DeFi protocol helping users increase utility and efficiency of assets. Backd secured $3.5 million in funding
Investors and VCs continue to focus on decentralized finance and the opportunities it represents. Moreover, there is tremendous untapped industry potential, especially where the bridging to real-world assets is concerned. With multiple projects easily securing millions of dollars in funding, it is safe to say that decentralized finance is still in a good position.
Furthermore, Justin Sun, the founder of the Tron blockchain, is confident more liquidity will shift to blockchain-based infrastructure. He hinted at how a decentralized stablecoin can succeed, but only if it reduces – or removes – the reliance on CeFi solutions. That will require broader cooperation with exchanges and other liquidity solutions, but it creates an appealing prospect to look forward to.
Industry Growth Continues Unabated
When people talk about decentralized finance, they will often look toward Ethereum, BNB Chain, and Solana for DeFi projects. However, other blockchain ecosystems note strong growth in this segment, with Cardano becoming home to an exciting and innovative project through Ardana. As the default DeFi platform for Cardano, Ardana specializes in optimal stablecoin-to-stablecoin trading.
Additionally, Ardana is home to the native dUSD stablecoin, an on-chain asset-backed currency. Furthermore, the team explores multi-chain bridges, including Elrond and NEAR Protocol. These bridges will enable free-flowing asset transfers and exploring new liquidity sources. The team also ventured into the world of initial stake pool solutions, providing substantial bonuses to users.
Another innovative solution can be found in HyperDEX, which aims to streamline the mainstream adoption of DeFi. It is an all-in-one investment solution where users can invest, deploy automatic trading strategies for others to invest in, and amplify their rewards. The platform also offers a fixed income solution on stablecoins and other crypto assets through Fixed Income Cubes.
Furthermore, HyperDEX offers other solutions DeFi novices and enthusiasts will be interested in, including variable returns by speculating on crypto asset prices. Other features are in the pipelines, including token swaps, liquidity pools, peer-to-peer lending, governance, NFTs, etc. Providing multiple DeFi solutions under one banner is a necessary gateway to bringing more mainstream users into the decentralized finance fold.
What Comes Next For DeFi?
There is much excitement behind the scenes of decentralized finance and for a good reason. Even though crypto markets have been mainly bearish, developers and enthusiasts commit their time and effort to build the next generation of decentralized finance products, protocols, and services. Despite recent incidents involving Celsius, Voyager, and other service providers, HyperDEX co-founder Suvi Rinkinen maintains a bullish industry outlook:
“The latest events haven’t diminished DeFi’s credibility at all. In fact, during these recent events, the DeFi protocols that had exposure to these entities were successfully liquidating posted collateral and operating exactly as planned. No halt on user withdraws, no downtime, just functioning as intended. This only proves the effectiveness of true DeFi protocols, as opposed to the centralized entities that are now largely insolvent and leaving countless individual investors devastated.”
Industry innovation is not linked to the prices of individual crypto assets or the performance of individual service providers, as the blockchain industry never sleeps. Moreover, the number of projects securing funding remains healthy, confirming the sector has more to offer for the foreseeable future.
HyperDEX Questions
What do you think is the next big opportunity for decentralized finance, and more importantly, how will it help improve the industry’s appeal among both crypto enthusiasts and onlookers?
DeFi has seen strong growth in 2021 and is holding its own despite a bear market for nearly all of 2022 so far. There have been various incidents involving big companies like Celsius and Voyager. Has this diminished DeFi’s credibility or are they necessary growing pains of a maturing industry?
The post Where Is DeFi Heading? appeared first on .
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.