Everything centred on crypto seems pretty much dead at this point, Bitcoin is being called out yet again, the inefficiency crap talks are filing the air, opinions on what crypto should be are escalated from individuals that know nothing about project building or management, but that's the thing about having an opinion, you don't necessarily need to be the smartest guy in the room, just need to be amongst the boldest to speak up.
Is DeFi the next big thing?
This is a topic we often focus attention or channel lots of energy to, the obvious reason is to attempt decrypting the reality of this digital assets market. DeFi is a unique piece of the cryptocurrency ecosystem, one I often term the biggest piece of the pie. The reason for this is because we are looking at the home network for money. Even though money eventually has to either buy a product, pay for service, gifted out or simply lost, the majority of this value gets trapped in a banking network, thus it's like a temporary home for currencies.
Given this, it is only ideal to pay great attention to this sector as a break in the system significantly affects the broader ecosystem, here's where we reflect on the effects of crypto hacks, clearly that has caused a stir in the industry leading to millions if not billions to exit the markets, but all hope isn't lost, Rome wasn't built in a day.
DeFi Users have steadily grown through time
One thing with banking is that people inevitably get involved with it anyways, it's a weird reality but no matter how fucked up the system is, it is always able to draw users one way or the other.
Here's something DeFi can take advantage of, while working on delivering the best security structures for its permissionless products.
According to July statistica report, DeFi Users are over 4.8 million, this is roughly over 3.5 million new onboards since January 2021. This is a fraction of the cryptocurrency industry as on estimated data, global reach should be over 300 million cryptocurrency users.
This points us to the fact that DeFi will keep growing because there's already a pre established market for it. Seasons change have significant effects on human choices, deploying products accordingly is an industry wide advantage, here's where we see projects with in-deep industry study scale, given that all necessary building strategies have been taken into consideration.
Sustainability is still in demand
Here's something that actually works for DeFi in a lot of ways. The general world economy is taking a huge beating, rising inflation is stirring up fears and people are desperate at this point. For anything that adds more value to their money, this is the leverage individuals are selling to the industry, given that the majority are looking to secure their wealth, rather than spend it as its value depreciates quickly, DeFi investment products position themselves as viable assets for passive income.
The ability to create and distribute value on the blockchain level by leveraging individual demands and ability to pay the cost(most often staking) has shown itself to be a game changer. We see similar situation with HBD, even though it isn't considered DeFi by many, but it is in fact DeFi, the creating and distribution of this value is autonomous, the asset itself is built on a permissionless blockchain, it is at this position an hedge to all the cryptocurrency volatility and general markets meltdown.
DeFi can leverage this demand factor year in year out and we can also tell the future of many legacy markets are hugely shaddy. DeFi holds the potential to scale the economy to new levels, with more industry wide advantage factored into building these smart contracts, the cryptocurrency ecosystem can sit back and enjoy the bliss of growing sustainable wealth on blockchain technology.
Thank you and please leave a comment, your thoughts matter to me
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