DEFI To Explode In A Decade Time?
Many times we've talked about the expansion of the cryptocurrency industry. Maybe some may not really give attention to it, but the user base is greatly growing, and if we're looking at a yearly x2 increase, are we up for global awareness in a decade?
According to coingecko data, Decentralized Exchanges have an estimated 133 million visits on a monthly basis. Though the visits may not really equal the number of users, it sure tallies with its functionality which attracts the public's attention. If we're to look at this traffic and what potential ads revenue would be coming from these visits, we'd realize this sector is more about the relevant clicks and not who is clicking. Just as the volume will always be significantly higher than the number of users, considering that where user A pools $100, user B could be pooling $1,000,000. That said, in a decade with a x2 yearly growth rate, an estimate of 1.3 billion visits is expected (it would probably be more)...
When you look up above, you'd realize Defi currently dominates about 7% of the global market, I mean that's a fair share considering where we are at user-wise, there's basically billions of more people to get these networks of opportunities to, and when once that's a reality, the phase of digital and decentralized banking would key off. I imagine a new age of financial management, with automation as a key function to bridge value on a network of Interoperability, where third-party inputs are not required.
DeFi projects which rarely record remarkable success are also among the focus of the study. Among the most intriguing aspects of the data leads to some centralization, as the majority of the funds are in projects that are controlled by 1,000 developers.
The release, published earlier this week, drew its conclusions from approximately 500,000 coding projects at Github with 160 million commits. The paper described Web 3.0 as the fastest-growing niche in the decentralized sphere and stated that the demand for such developers is at an all-time high.
Developers involvement has seen a 65% increase this far, with about 18k monthly active developers. The quote above may have been throwing shades on DEFI being centralized as though under 1,000 developers control about $100 worth of smart contracts being locked in Web.3.0 project platforms. Well, that's about 50.99% of the total locked value, is it really centralized? Across 1,000 developers?
Considering that these are locked contracts, there's first of all a room for security are these come with certain time frames that investors can project their interest. Second, across 1,000 developers could mean across 1,000 different projects, that's unlikely, but it also means, if in a fair share, that's about $10 billion each developer. Of course this fund is much more spread than these stories may tell, across several pools, with different purposes. I'd say these guys are paying way too much attention to the peg value when crypto aims at removing that system of manipulated Fiat values. The decentralized nature of Web 3.0 isn't about what number of contracts hold the most value, but what number of individuals hold the most tokens, that's comparing circulatory supply to tell each account percentage influence, this is what decentralization implies, the spread of power with tokenization.
There's is something very interesting about this metrics, it's focused on just DEX visits… Centralized exchanges are excluded, meaning the figures are much higher than this when looking at the entire industry… However, 133 million visits shows just how much of an urgency it is for people to adopt DEFI protocols… A few minutes ago I was playing around Thorchain, on a quest to find more honey combs for arbitrage trading, and I must confess that it sure seems like a good atmosphere to build, though I was finding it difficult to connect my wallet, that I intend to try again later and test run my trading…
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