By Maxim Galash, CEO at Coinchange
Once crippled by the crypto winter, the decentralized finance (DeFi) industry is now beginning to exhibit signs of revival. In the final quarter of 2023, the market recovered from a 30-month low and has the potential to keep climbing. Astonishingly, the industry grew by 865% between 2020 and 2022, peaking with a total value locked (TVL) figure of $254 billion in December 2021. Across the board, audiences are now understanding that DeFi enables an open and inclusive financial ecosystem that challenges traditional intermediaries and empowers individuals with transparency and control over their assets.
Despite being in its infancy, DeFi holds immense potential for mainstream adoption and integration with traditional finance (TradFi). Decentralized finance has the potential to create a global, borderless economy. While traditional banking systems inconvenience individuals with poor accessibility, high fees, uncompetitive savings, and lending rates, and limited asset ownership, DeFi allows anyone with an internet connection to bypass these shortcomings. This opens up opportunities for the unbanked and underbanked populations to access financial services and improve their economic well-being.
But for all its promises, DeFi continues to falter in ensuring trust, security, and user-friendliness. In the face of these challenges, there is an urgent need to establish a…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
