In a decade, Bitcoin (BTC) has managed to break through the $ 20,000 mark. In its wake, many crypto projects, exchanges, and crypto payment gateways, have emerged. What will the face of finance look like in 2030? Will decentralization have succeeded in asserting itself, crowning DeFi and Ethereum (ETH), with DEXs which ended up having the upper hand over CEXs.
ETH leaks in CeFi
Data from Glassnode indicate that a significant portion ofETH has switched from CeFi to DeFi.
A tweet from December 11, 2020 indicates that deposit transaction fees ETH on centralized exchanges fell from 26% in October 2017, to less than 1% on December 9, 2020.
Most of CeFi’s transaction costs in 2020 relate to withdrawal operations.
DeFi made the headlines of most specialized media during the summer of 2020. Many investors had turned to these semi-autonomous exchanges and these lenders, mostly based on Ethereum.
The centralized exchanges had launched new features to offer services similar to those of DeFi.
TVL and bubble: double explosion of DeFi
According to the site DeFi Pulse, the total blocked value (TVL) in DeFi is currently around $ 14.18 billion, up from $ 662 million at the start of 2020.
The quantity of tokens ETH on DeFi protocols is estimated at 7 million units, worth $ 4.1 billion.
A slight increase was noted in December 2020 compared to the previous month, during which the number ofETH had come down to 6.6 million.
The most important DeFi protocols are Maker (MKR), WBTC, Compound (COMP) and Aave (AAVE), which are all based on Ethereum.
The Binance CEO, Changpeng Zhao, had previously warned cryptophyls against the dangers of DeFi.
He also indicated that decentralized exchanges would end up swallowing centralized exchanges.
Can DeFi do better in 2021? She would only be in her infancy. The rise of DeFi could theoretically only happen with a fall of CeFi, a zero-sum game. DeFi should benefit from better infrastructure to support its development with the gradual deployment of ETH2, the achievements of Moonbeam on Polkadot (DOT), as well as the initiatives of other projects that do not intend to stay on the bench key.
Litecoin, welcome in the Silver Age