Although this year is the first year of Bitcoin's third halving and an important year for the launch of Ethereum 2.0, the hottest topic this year is DeFi. So far, DeFi's total lock-up volume has exceeded 8.5 billion U.S. dollars, with a total value of more than 350 billion U.S. dollars, but this value only accounts for a very small percentage in the cryptocurrency field, which is only a quarter of the total market value of Bitcoin. That's it, so there is still a lot of room for development in DeFi in the future.
Compared with CeFi, the current scale of DeFi is almost negligible. You must know that traditional financial derivatives have a market of tens of millions of billions, and the total digital currency is only 1% of it. If the entire financial application of CeFi is moved to DeFi, I believe that DeFi must be the next trillion market for cryptocurrencies.
In the last round of encryption enlightenment, DeFi's popularity cannot be separated from two factors. One is the discovery of the value of Bitcoin. The total market value of Bitcoin has exceeded one trillion, and a consensus has been established in the entire financial market, which is recognized by people. With its value, it has officially become an asset for value storage and value flow, becoming the first important native asset in the digital age, and becoming "digital gold".
The second is that Ethereum brings digital currency into the 2.0 era, that is, the rise of smart contracts. Based on Ethereum's smart contract platform, various financial products with complex logic can be constructed, which is suitable for developing open finance with various gameplay. Coupled with CeFi's complex process, low efficiency, and high barriers to participation, DeFi has quickly become popular due to its decentralized, efficient, fast, easy-to-operate, and anonymity features.
At present, the number of DeFi users is about 400,000, accounting for 1% of the user scale in the encryption field. Specifically in the DeFi project, there are currently about 280,000 Uniswap users; Compound has about 50,000 users, Maker has close to 20,000 users, and Synthetix has less than 10,000 users.
Judging from the above-mentioned user scale, although DeFi seems to be raging in recent times, such as liquid mining, online exchanges, futures, options, etc., the entire DeFi is still in a very niche stage. Although the threshold for DeFi participation is very low, the threshold for use is very high. For most users, to use DeFi, they need to face the wallet registration, wallet key management, wallet and protocol interaction, and then they will be involved. Various more complex interactions such as lending, trading, mining, synthetic assets, various arbitrage strategies, and mining strategies are too difficult for ordinary users.
Especially for newcomers in the currency circle, just registering wallets, managing secret keys, and recharging mortgages are already very complicated. Then you can understand all transactions, liquidity mining, asset reconciliation, and arbitrage strategies in a short time. Yu let them learn the entire currency circle gameplay and system. These operations may be nothing to the core players, but for most ordinary users, it is a very headache.
In addition to the high threshold for use, the DeFi platform also has relatively large interest rate fluctuations, which has caused great difficulties for users to choose which platform to provide liquidity to. This has laid the foundation for the emergence of aggregators and is expected to become DeFi The next trend. It can give users directions and make it more convenient for users to participate in DeFi. At the same time, they don’t have to worry about complicated operations, high costs, selection, security and other issues. Users only need one-click operation, and all the work is handed over to the aggregator. Do it at the bottom to make liquidity easier.
The emergence of aggregators will help promote the development of DeFi, and the popularity of DeFi will boost the price of Ethereum, which is expected to reach new highs in the short term. Therefore, now is the best time to buy Ethereum. However, buying Ethereum spot is not as good as buying BitOffer's Ethereum ETF fund. It has added an intelligent dynamic position adjustment mechanism. The return is 3 times that of the spot and can reach up to 17 times. There is no margin system and there is no risk of liquidation.