Report: DeFi could be price driver for Ethereum

Binance describes the decentralized financial movement (DeFi) is growing, but still not leave a lasting impression in the Mainstream left. In a comprehensive report Binance Research followed, such as DeFi – a roof name well-versed in a broad push to automation and removal of intermediaries in the case of traditional financial services such as lending and borrowing, derivatives, Margin trading, and insurance-under the Crypto gaining momentum.

Binance refers can earn on early success stories, such as the crypto rental companies Compound, and has built up a decentralised System, with the people, by the loan of your crypto-currency to other users of interest. Meanwhile, the Compound has a user group of 21.424 customers. The value of the collateral in its Ecosystem in US dollars increased from 13.4 million U.S. dollars at the beginning of 2019 to 86.3 million US dollars at the end of the year, a jump of 541%.

The researchers expect further growth and describe (freely translated):

In our view, we expect that DeFi will encounter in the industry participants and more interest. However, the application remained cases so far is limited mostly to the existing crypto-Community…

As soon as some technical and legal challenges are resolved, we expect a comet’s growth in the decentralized financial industry, which is likely to attract people and capital on the part of the existing crypto-industry.

Binance indicates Ethereum as the undisputed king of the DeFi-movement, but says that it expects that other Blockchain platforms will grow in the coming year faster. What concerns Bitcoin, takes Binance that a growing number of decentralized financial solutions, built around BTC around, will be expected to

Bitcoin (BTC) is likely to play a more important role in DeFi, both on Ethereum as well as a stand-alone solution… [It could also] be used as a safety in MakerDAO (for example, tBTC, WBTC) will be added and a further proliferation in established Ethereum-based DeFi-applications.

Binance also highlights EOS, Binance Chain, NEO, Cosmos, Tezos, Algorand, TomoChain, Tron, Waves, and Ontology as a potential Blockchain platforms, which could in the long term, play a significant role in the growth of DeFi. The decentralised financial economy has experienced in the last year, steady growth, regardless of whether the market was dominated by the bulls or the bears. How-to-date data of defipulse.com 789.8 million USD in all Ethereum-based DeFi show at the time of writing-projects included.

For the next few years strong growth is expected, so that this market may grow to several billion USD. Some industry experts see in DeFi the future of the financial freedom, because there is no middle man, the fees for clean up or other restrictions can impose. This new growth market has been recognized by many companies. So Ripple has invested in the Vega Protocol, in order to have right from the beginning, a foothold in this emerging market.

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