The decentralized finance (DeFi) sector has grown spectacularly in 2021, feeding the growth of crypto markets which then reflected that into it. Lately though there's been some bad news for those who believe this will continue as more and more people are starting to flock towards security tokens rather than cryptocurrencies due their stability features - but don't count them out just yet!
DeFi is really just getting interesting. Hive has also started to gain legs which is extremely important for all of us bloggers and "OG" users of Web3.
DeFi is Just Starting to Gain Its Stride
There is a lot of growth expected for different segments within DeFi next year, from liquidity mining and yield farming to decentralized autonomous organizations (DAOs), decentralized exchanges (DEXes) and non-fungible tokens or NFTs.
DeFi will be coming to a bank near you in 2022!
The introduction of legislation is imminent. Though, most commenters are also positive about this and say that it'll open up DeFi as we know today for mainstream interest rates & investments.
The macroeconomic situation of recent years has opened many people up to cryptoassets and decentralized finance products. As a result, DeFi is on the rise as more financial institutions are looking into integrating blockchain technology for their own benefits in 2022.
In 2018, Timo Lehes expects that new types of assets will increase mainstream adoption for DeFi. Regulatory clarity and institutional seals from approval programs are also expected to play a big role in 2019's market movements as well!
In a recent interview, Rachid Ajaja from AllianceBlock expressed his belief that the banking industry will be increasing their engagement with decentralized finance in 2022.
He attributes this development to two-parties becoming increasingly interested: firstly traditional players like himself who want access 2/3rds of all investment opportunities available without having any background knowledge about cryptocurrencies or blockchain technology; secondly institutions themselves.
The reason institutions are having such difficulty with compliance and regulation is because of DeFi regulations, which were originally set to happen in 2021.
However they haven't yet become a reality so until next year we'll have some progress on this front from multiple angles including Goldman Sachs' proposed "Unbundled Deposit," Bank Of America's new feature that allows customers complete control over their funds via mobile app or website; but also many other innovations coming soon!
The DeFi sector is going to clear increasing regulatory hurdles in 2022, which will lead it on a path of offering more products for investors. Top of this list are non-fungible tokens (NFTs).
The US Constitution is a renowned document that has been around for over 200 years and was written to establish the country's fundamentals. But in 2021, one DAO raised more than USD 40 million worth of crypto just so they could try to buy their only surviving copy from auction!
Boy has the world changed!!!
In the world of crypto, one project has been showing great success.
Axie Infinity went from 38,000 daily active users in April to 2 million by mid-November!
This huge increase is likely due not only because they're developing blockchain games but also how DeFi will be an integral part for their business model going forward - with obvious implications on GameFi too (which I'll talk about later).