There is a prominent year-to-date increase in the trade volume for the crypto firms which are decentralized. Also, there are certain decentralized applications that are even finding it hard to handle such a large volume. The volume is so high at these decentralized exchanges that it is even bigger than the ones with centralized exchanges.
Undoubtedly, the year 2021, belongs to crypto revolutionary products, and amongst them is “DeFi”, which remained on top of everything. There are a number of DeFi projects in the market and in most of them, Ethereum is dominating. The total value locked (TVL) in these projects collectively is above US$ 250 Billion. Then there is a competition, taking place every day, between the dex applications in terms of daily trade volume. Today’s winner of the competition is “Uniswap” with today’s trade volume averaging above US$ 1.5 Billion. In terms of DeFi economy, however, Uniswap is commanding US$ 8.81 Billion into the economy.
The sector of DeFi was invented with the digital economy in 2019. At the end of 2019, TVL was hovering slightly over US$ 1 Billion. When 2020 ended, TVL went over US$ 15 Billion. From January till May 2021, TVL increased from US$ 15 Billion to literally US$ 80 Billion. However, the major increase came after May 2021 and as of today, DeFi’s TVL is exceeding US$ 250 Billion. One can only imagine how quickly and how phenomenally DeFi sector has been growing.
There are currently 24 dex firms that are leading in the DeFi sector. At the top of them all is Uniswap and at number two is Pancakeswap whose today’s trade volume is exceeding US$ 848 Million roughly. Then comes DeFi protocols namely Trader Joe and Curve, whose daily trade volume for today is above US$ 453 Million each.
According to many experts from the crypto space, DeFi is going to be the ultimate future of the crypto economy. They believe that there is enough room left for DeFi sector to evolve. They argue that DeFi is still in its initial stage. The developers, therefore, have plenty of time for carrying out experiments for developing new products and improving the sector further.
Experts further argue that there are many grey areas in the sector that need to be addressed by the developers. For instance, several economical and technical as well as operational issues are there, which remain unresolved as yet. On the other hand, the issue of high volatility also lies in the sector.
Then there are certain risks that could become a hurdle in the growth of DeFi. For instance, the risks can be associated with hack attacks and frauds. Successful and failed attempts of hacking had been seen in the past happening frequently. For the continuous growth of DeFi sector, all of these issues have been addressed properly and efficiently.