DeFi Has Huge Growth Potential
It cannot be denied that the Defi market has been very sluggish in the past few weeks. After a stream of negative news about cryptocurrency. Whether it's news of the Kucoin hack, the lawsuit against Bitmex, or even news that US President Donald Trump is infected with Covid-19.
Earlier this month, the cryptocurrency analyst shared his datasheet. It should be noted that the average DeFi token price has dropped 61.8% since hitting a 45-day high, while leading Defi tokens such as Curve DAO, SUSHI and BZX have dropped more than 90%. from head to toes
But what's interesting is that since he shared this fact sheet, the value of DeFi Coins has dropped. Losses increased by 5-20% across the board.
However, the foundations of the DeFi sector remain strong. A former financial advisor to JPMorgan named five reasons the defense sector still has huge growth potential.
DeFi fundamentals remain strong
Despite major changes in Defi, crypto fund managers firmly believe that the macroeconomic outlook for DeFi remains strong.
DeFi Capital and DeFi Capital (Parafi Capital) partner Santiago R Santos have made this clear by sharing five reasons why the region continues to grow.
It is worth noting that Parafi Capital received investments from Mike Novogratz, a cryptocurrency investment bank Galaxy Digital. Galaxy Digital said that, due to regulatory considerations, they are still reluctant to invest in increased agricultural production. Rules and their stability
Santos said there are five reasons:
- MetaMask, the smart wallet used by most of Defi's investors, has attracted 1 million users this year. Almost four times more than last year.
- The turnover of stablecoins reached $ 20 billion, which is 4-5 times more than this year, and the majority of stablecoins are used for transactions. But some components are tied to the DeFi protocol, such as MakerDAO, Compound, and Aave.
- Ethereum is currently expanding with various solutions such as the upcoming ETH2.0 network upgrade and Layer 2 technology.
- Companies like Rainbow and Argent are gearing up to launch a wallet that's easy to use and requires less technical knowledge. Hence, it is easier for users to interact with Ethereum and DeFi.
- Cryptocurrency trading just got easier thanks to support from Square, Robinhood, Visa and more.
While many might think that the end of Defi may have arrived. But some people still believe Defi will be a game changer in the future of cryptocurrency.