The DeFi industry has seen strong growth in 2020 and is continuing to grow. Polychain CEO Olaf Carlson-Wee spoke about the reasons for the popularity of DeFi applications.
In the podcast The Scoop, Olaf Carlson-Wee recalled that back in January 2020, the trading volume on decentralized exchanges was $ 600 million per month, and in January 2021 it should exceed $ 40 billion. The industry’s popularity was influenced by a whole set of factors, for example, the development of wallets like Metamask and the increase in the number of interesting assets for trading.
“You want ease of use, and this is especially true for wallets like Metamask. If you remember, earlier, to work with assets on the Ethereum blockchain, desktop applications were used, which, in fact, were full nodes of the network, and this was very inconvenient, “Carlson-Vee noted.
In addition, the number of different tokens on the Ethereum network has grown significantly. Various stablecoins have emerged, greatly increasing liquidity in the DeFi industry. The CEO of Polychain noted:
“DeFi relies on many assets on the Ethereum network that are fun and profitable to trade. In 2017, there were, I think, less than ten such assets. DAO assets, Uniswap and Compound tokens appeared. In addition, new technologies have been developed, such as the automated market maker Uniswap, further increasing liquidity and trading volumes. ”
Former Director of the Office of the Comptroller of the Currency (OCC) Brian Brooks previously said that outdated regulations are hindering the development of the DeFi industry.
Telegram channel!
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
