Projecting DeFi Growth in 2020

Asia Blockchain Review
January 2, 2020

In 2019, decentralized finance (DeFi) became the buzzword of the cryptosphere. In 2020, DeFi is expected to gain even greater momentum and push the crypto community towards a more decentralized future.

Introducing DeFi to the Crypto Community

According to Finance Magnates, the DeFi movement began when people started to use decentralized lending platforms on Ethereum.

“The DeFi movement started by the development of decentralized and trustless lending platforms through Ethereum smart contracts,” said Micha Benoliel, CEO and Founder of IoT connectivity provider Nodle.

“People then developed alternative financial services such as synthetic assets (for example gold, diamonds, other currencies), derivatives or even decentralized exchanges,” he added.

In 2019, crypto lenders reported massive growth from Q1 to Q2, with Graychain statistics revealing that Compound, Dharma, dYdX, Maker and nüo experienced a total increase of 239.84% in the number of new loans — from 5,462 to 18,562 — as well as a 145.7% increase in new loans quarter over quarter — from US$64.8 to US$159.3 million.

Stepping Towards a Decentralized World

However, with all the movement in the DeFi community, the financial industry may not be ready for a totally decentralized world any time soon. Dan Schatt, Co-Founder and President of DeFi company Cred, stated:

“To some, [DeFi] represents the ultimate dissolution of all financial intermediaries, in the same spirit that Bitcoin was created. The reality is that the world of finance is moving on a continuum, some faster than others towards decentralization. We aren’t there yet. Today, most would not trust your finances with a purely decentralized custodian.”

“However, most agree that the DeFi solutions most poised to support mainstream customers are those that deepen and blend competencies associated with blockchain, capital markets, lending, borrowing and merchant services,” he added.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    World’s First Virtual WorkTech Summit: Grooves
    Grooves recently hosted a virtual summit with key speakers from Lazada Malaysia, Netflix, IBM and mo...

    July 14, 2020

    APAC Fintech Funding Dip by 58.5% in Q1
    The amount of capital raised by fintech companies in the APAC region dropped 58.5%. Asia Blockchain ...

    July 12, 2020

    “Showcasing Malaysia’s Support For MSMEs Through COVID-19 Crisis And Beyond
    The IsDB in partnership with MDEC, SME Corp, IAP, INCEIF and UNCDF organized a webinar on “Showcasin...

    July 9, 2020

    Zilliqa Expands Blockchain Accelerator – The ZILHive Odyssey
    The experiences and lessons learnt from the first batch over the past 12 months have helped Zilliqa ...

    July 9, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us