2019 — The blossoming period of the DeFi movement
Why is 2019 considered a flourishing year for the DeFi movement?
According to DappRadar’s 2019 end-of-year report (Blockchain is at the forefront of deploying decentralized applications Dapps) on the development of the decentralized application ecosystem — DappRadar 2019 dapp Industry Review, DeFi is the category strongest growth with the number of new users increasing by 529%. In addition, DeFi also accounts for 45% of the total value of ETH and ERC20 tokens in the Ethereum Dapp ecosystem, and the token activity of DeFi products has increased by 1,990% since June.
According to statistics from Dune Analytics — Ethereum-related data statistics website, the DEXes decentralized exchanges have seen quite an impressive transaction volume (over 2.3 billion USD) in 2019 alone.
Idex is the leader with more than 850M USD in trading volume. Ranked second is the Oasis floor with nearly 500M USD. Kyber, Uniswap and 0x were in the next place with a total volume of 388M USD, 370M USD and 228M USD respectively.
In addition, the “giants” in the crypto market are also early aware that DeFi will be the development trend of the market in the future and soon invest in the development of decentralized financial products and services. middle. Typically, the world’s leading cryptocurrency exchange — Binance launched the testnet version of Binance DEX on February 20, 2019. Or in September 2019, Coinbase — the world’s leading crypto wallet, set up USDC Bootstrap fund to work towards the development of DeFi technologies.
2020 — A new era for the global economy
Based on the above figures, we can see that DeFi has seen a pretty good year in 2019, but is it still going to be the trend of 2020? Will DeFi be able to change the traditional finance?
To answer the above question, let’s go back to the definition at the beginning of the article a little bit. The birth of DeFi is an inevitable consequence of a society with many problems of political instability and you cannot trust anyone but yourself!
As you can see, according to recent reports, people in Hong Kong and Santiago have been conducting protests demanding structural change or the election of a new one. They gradually lose confidence in the authorities and this also makes the people here decide to invest in Bitcoin, as it is not under the control of the government.
People’s distrust of banks and financial institutions is increasingly deep. Typically, on October 30, 2019, the Federal Reserve Bank of the United States of America launched a policy to cut interest rates from 1.75–2% to 1.5–1.75% (this is for the third time this year, the Fed makes a decision to cut interest rates). The people think that this Fed’s fiscal policy is problematic and affected by politics. Cutting interest rates can stimulate economic development, but at the same time will easily lead to inflation, then the dollar and other currencies will be susceptible to devaluation and severe adverse effects.
The political and economic instability in the countries is increasingly tense. The United Nations has also issued warnings about an approaching economic crisis. That is why every path leads to a decentralized financial future where everyone takes control of their own assets, transaction data, and financial futures.