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Liquidity has driven DeFi’s growth to date, so what’s the future outlook? -Breaking

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Liquidity has driven DeFi’s growth to date, so what’s the future outlook?

Mid-February 2020: The decentralized finance total value (DeFi) Applications first exceeded $1Billion. Fueled by the DeFi summer of 2020, it wouldn’t even take a year before it multiplied 20-fold to ReachIt will take another 10 months for $200 billion to hit $20 billion. Given the pace of growth so far, it doesn’t seem outlandish to imagine the DeFi markets hitting a trillion dollars within another year or two.

You can. Attribute this monumental growth to one thing — liquidity. Looking back, DeFi’s expansion can be defined in three eras, each representing another significant development in removing barriers to liquidity and making the markets more attractive and efficient to participants.

Jimmy YinHe was a co-founder at iZUMi Finance. He was previously a member of the World Economic Forum community and a researcher for North American Blockchain Association before he entered DeFi. Max Shen from UC Berkeley, and HK University supervised him in his PhD. Jimmy is working to increase liquidity in spirit and crypto.