The capitalization of projects within cryptocurrency ecosystems has grown 61 times in 2020 and reached $ 92 billion, said Dmitry Volkov, CTO of the international cryptocurrency exchange CEX.IO. In 2021, this figure could reach $ 200 billion, the expert said.
Decentralized Financial Projects (DeFi) are blockchain-based applications and services that create an “ecosystem” of a particular cryptocurrency. Most of them are created on the Ethereum network, the second most popular digital currency. The main task of such projects is to act as an alternative to the banking system. With the help of DeFi, you can borrow money in various digital assets at lower rates secured by cryptocurrencies, make deposits at high interest rates, and trade within the ecosystem.
The number of unique addresses, users of the system, has increased 17 times since the beginning of 2020 and exceeded 1.6 million in March 2021, Dmitry Volkov said.
The DeFi sector has become an alternative to the traditional financial system, Gleb Kostarev, director of Binance in Russia and the CIS, is sure. Last year, its growth was the most significant of the entire cryptocurrency industry. Such projects have a transparent, secure system and allow users to control their assets themselves.
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Wallet or bank: the capitalization of cryptocurrency ecosystems has grown 61 times