Grayscale DeFi Adoption Report: Internet Banking At The Hla Border

Decentralized Finance (DeFi) is a new cryptocurrency that breaks the chains of banks and borders and creates a new global internet-based financial ecosystem.Today DeFi is embarking on a global financial and e-commerce exchange, but this legacy remains a mystery to many investors. In response, Grayscale released an “Introduction to Greyscale DeFi,” which provides an in-depth study of the robust financial processes of the Web 3.0 crypto cloud industry, discusses the applications, and delivers an overall message via DeFi.

Cloud Web 3.0 economics

The report believes that the Internet will continue to grow with the expansion of technology. Cryptocurrency assets are a new investment in integrating the internet and emerging markets. Past innovations such as internet connectivity, cloud intelligence, global migration, financial and monetary integration have combined with the confidence and maturity of cryptocurrencies to create a growing cryptocurrency cloud industry. line. The industry continues to grow rapidly by exporting Internet products and services to the traditional global economy. andAs the new level of financial sharing ownership in technology, DeFi applications have driven the transformation of the internet paradigm, known as Web 3.0.

Advances in the growth of cryptocurrency

The report shows that the Internet native encryption cloud industry is booming like a wave. Digital currency, cloud trading platforms, and financial ecosystems are our eye-catching levels of cryptocurrency so far. Similar to the Web 1.0 and Web 2.0 stages of the Internet, both developed from previous and more powerful levels. Specifically, the Bitcoin blockchain is known for its reliable exchange rates, the Ethereum computer is known for its legitimate recognition of digital businesses and digital businesses, and DeFi's open API knowledge of the global market ecosystem. . Each new innovation has become the basis of a stronger global internet-based community. Historically, with the expansion of the cryptocurrency industry, the closer will lead to the fastest growth, and DeFi adheres to this model as well.

Innovation in the banking sector

The report states that DeFi is an ecosystem of online business services supported by software applications running on a crypto-cloud business platform such as Ethereum. DeFi applications, commonly referred to as Decentralized Applications (DApps) due to their global nature, use open source and open source software protocols managed by users of an encrypted network to achieve financial decentralization. of the many services provided by financial companies are always available. DeFi only emerged recently, but the industry has grown rapidly and has taken over some banking services, including fixed parts, loans, and exchanges. Derivatives, data, asset management, etc.

DeFi loans compete with bank accounts and savings accounts, giving users the freedom to save their money and earn higher interest rates.DeFi exchanges simplify transactions such as e-mail, shared hosting and SMTP connected e-mail providers, and can transform medium-to-medium exchanges into integrated business services with "e-mail forward". DeFi robo-consultant's recovery automation strategy is to maximize the efficiency of business investments, which was not possible before DeFi launched the Information Store API. DeFi allows a person to provide these financial services to anyone in the world with an Internet connection.

chaos in the financial sector

Since the launch of MakerDAO in 2015, many DeFi applications have appeared in large companies. After several years of technological advancement, 2020 will be the year DeFi finds its place in the hardware industry and intensifies. The value of the DeFi key contract has grown from less than $ 1 billion today to almost $ 90 billion. DeFi value creation has ranged from operational, and so far trading and borrowing have become the main drivers of growth. As technology advances, other parts of this field will continue to change.

DeFi quickly reached this point, and the process before ecosystems began to compete with traditional financial services.The excellent development of DeFi should be noted. DeFi's assets now represent more than 2.6% of the S&P 500's $ 4.2 trillion financial services market value, a 25-fold increase in less than two years.

Sister tab,Compared to the total available market (TAM) market value, the DeFi ecosystem is still in its infancy, and the total market value is still only about 1.6% of the $ 8 trillion market value. dollars from international financial markets. JPMorgan Chase alone is almost five times the size of the entire DeFi ecosystem.However, DeFi has the potential to grow by leveraging the traditional financial services industry and increasing its share in the cryptocurrency industry by nearly $ 2,000 billion.

DeFi acceptance and schedule

According to reports, the adoption of DeFi has resulted in rapid growth in recent years. At the end of the third quarter of 2021, the total number of sites using DeFi reached 3.5 million, more than six times last year. In validating the application of technical feasibility and competitive advantage, user development of various personal DeFi protocols has shifted from linear development to exponential development.

The total cost of locks (TVL) shipped by the DeFi app increased more than 7,700 times last year, reaching $ 172 billion in the third quarter of 2021, with total penetration of up to 1% of U.S. businesses depositing all deposits. In terms of assets, DeFi has become the 18 largest banks in the United States. With these assets, DeFi's big deals generated $ 2.4 billion in multiple locations in the first six months ending August 10, with DeFi expected to generate nearly $ 5 billion in revenue each year.

The global financial system has worked for approximately $ 300 trillion in assets, generating $ 5.5 trillion in revenue and at the same time increasing the value of the average US digital wallet. Consumers of US commodities and finances are estimated at $ 19,000. Great opportunity for DeFi promotion.

Risks facing the DeFi ecosystem

The report notes that unclear management is a significant risk for DeFi. Crypto and DeFi are trying to create new cloud computing companies, but international organizations have yet to engage in international partnerships. Otherwise, you run the risk of foreign punishment. Other risks of DeFi include theft or embezzlement, technological growth, cryptocurrency prices remain unchanged, and some business models or management are unproven.

Cryptocurrency makes the Internet available to users, and DeFi allows those users to be part of the financial ecosystem.DeFi is the third phase in the growth of the airborne crypto industry and the next wave in financial technology.The internet has expanded access to information and DeFi has the ability to make the same story in banking. DeFi Seeks to Transform the Process by which People Build Internet Trust and Provide New Business Opportunities for 33 Million Homeless U.S. Banks, 1.7 Billion Seniors Without Bank Accounts, and 4.6 Billion Internet Users .