Trends In The Defi Space

Guy Elhanani

Written by Guy Elhanani - a blockchain expert and consultant

Until recently everything related to finance was very centralized.

You had the government, the banks, the large financial institutions, large insurance companies and so on.

However, blockchain and crypto have started to revolutionize the space and there is an obvious move of a large amount of people from CEFI (Central Financing) to DEFI (Decentralized Financing).

Guy Elhanani

Some of the places where we see this trend is in the Borrowing and Lending space for example where you can now Borrow against trout crypto holdings or lend your crypto assets and receive a high return for it which usually can get you up to 8-12% which is unheard of in the CEFI world and sometimes more..

Other trend are farming and staking which generates high yields on your crypto assets.

We also see the insurance space starting to go through this shift, asset management, global remittance (international transfers and banking the unbanked), payment solutions with lower fees and many more.

While there has been some resistance by governments, banks and other big institutions then I believe this trend will only continue to grow and expand and more funds will be flow into these Defi solutions and I also believe NFT’s will also became part of this Defi revolution including being a wrapper for different financial products as well as lending and borrowing against them.

I also believe that we have reached the point of no return in crypto adoption so more government and banks will start accepting crypto and adjust their regulations according and start joining the revolution if they want to survive. We have seen Ukraine recently accepting crypto and legalizing it, HSBC entered the metaverse and now one of the largest banks in Israel accepting crypto trading and this is just the beginning.