DeFi allows users to receive loans, trade assets, and store deposits. Since 2020, the total value of assets locked in DeFi protocols has increased from $1 billion to over $200 billion in early 2022. This value refers to all deposits locked under the form of cryptocurrency for staking, lending, liquidity pools and more. Let’s talk about defi market potential
About Defi definition DeFi place in Web 3.0
The idea behind DeFi is that blockchains – decentralized databases distributed across multiple nodes around the world and secured with cryptography – can replace intermediaries in financial transactions, like banks. and technology platform.
Through DeFi lending, users can lend crypto-currency, just like a traditional bank that operates with fiat currency and earns interest as a lender. Borrowing and lending are the most common use cases of DeFi, alongside more complex ones like being a liquidity provider and liquidity farmer for a decentralized exchange.
These contracts are why developers can build complex functionality instead of just sending and receiving crypto assets. Functions are held in decentralized applications or dapps.
Today, DeFi applications allow us to create stablecoins (cryptocurrency with their value fixed to USD), lend money and earn interest on crypto, borrow money, exchange assets and execute Advanced investment strategies.
Potential of Defi market
Explosive growth creates opportunities for startups. As DeFi continues to grow, enthusiasts and developers must figure out how they can make space for themselves in the metaverse. Explosive growth creates opportunities for startups.
Quantifying DeFi Adoption and Future Trends
2021 is all about the metaverse. Facebook rebranded itself as Meta and emphasized its focus with many other organizations like Epic Games, Coinbase, Microsoft, and Tencent getting into the game. While the hype continues and we see brands as invested in the future of virtual reality as they are now, 2022 and the next few years will see profound developments in the construction of the metaverse. According to Grayscale Investments, the metaverse is becoming a trillion dollar revenue opportunity
Non-fungible tokens are growing in severity, evident from OpenSea’s $13.3 billion valuation following the Series C funding round. Aggregates and NFT markets continue to dominate decentralized platforms, as other competitors race to make money. OpenSea hit an all-time high of $5 billion in monthly trading volume between Ethereum and Polygon on its marketplace in January 2022. According to Deloitte, between four and five million sports fans worldwide will buy or be gifted an NFT sports collection by 2022. NFT will also play an integral role in giving players ownership of their digital assets purchased in-game, highlighting its importance in the game industry.
About Virtual real estate
Prices on digital property in the metaverse rose 700% in 2021. Snoop Dog – a famous Rapper was one of the first investors who built an interactive Snoopverse. Snoopverse allows users to pay whether they want to buy a real house in physics in order to become his virtual neighbors.
Seize your opportunity by understanding the Defi market potential regardless of difficulty in accessing information.
Want to get more information about the potential of the Defi market, contact us!
Contact us if you have any queries about Blockchain development services.