This latest report is a guide to help the new generation of cryptocurrency users and veterans alike on the paths of decentralized finance.
The cryptocurrency market experienced a burst of growth during the decentralized finance (DeFi) summer of 2021 and the rise of fear of missing out (FOMO), which boosted the prices of Bitcoin $BTC and much of of the cryptocurrency market to all-time highs. During that time, the total value locked (TVL) across DeFi soared to nearly $180 billion before crashing to the ground.
After the price of #BTC has crossed the $30,000 threshold in recent weeks, some are speculating that the market is preparing for another uptrend.
More growth for DeFi in the near future?
Before investing in DeFi, it would be important to know the growth potential of the sector if interest increases in the future. If you look at the graph below of the spectacular rise of DeFi during DeFi Summer 2021, it seems to indicate that there is plenty of room to grow to at least the levels reached during the last bull cycle.
There is no guarantee that cryptocurrency markets will replicate the move, but it does indicate that at some point there was a market appetite for DeFi at these levels. The question potential investors should ask themselves is: "Is there more or less adoption today than in the past?" and “Could there be more or less adoption in the future than today?”
So many tools, so little time
Unlike the early days of cryptocurrencies, there are a multitude of different tools and applications available to DeFi participants. It would be impossible to bring together in a single graph all the different solutions that have been founded and implemented.
The following illustration serves as a starting point for DeFi investors to begin investigating the different protocols and possible investments in the crypto universe.
