Decentralized Finance is the embodiment of the concept of cryptocurrencies. Their crypto projects are considered as a defense against economic collapse, as DeFi seeks to rewrite the way the entire banking system works.
A new stage in the development of the crypto industry
Today, DeFi is the same for cryptocurrencies as oxygen is for people. Yes, the field of decentralized Finance has become so important for the cryptocurrency industry that almost every significant development today has DeFi roots. Even the ICO mania of 2017 cannot be compared to a giant bubble of decentralized Finance. Bubble or not, it creates crypto millionaires faster than you can imagine.
So, what fuels DeFi? Decentralized Finance is the embodiment of the concept of cryptography — the ability to create financial solutions that compete with conventional financial and banking services, although on a decentralized architecture. This means a range of services related to money, beyond the competence of the government authorities and conventional rules. Sounds exciting, doesn’t it? Not surprisingly, millennials who are fed up with banks are looking to invest in next-generation technology.
As the fundamentals of the global economy look increasingly shaky, decentralized applications are finding more support among investors.
DeFi continues to challenge traditional banking
The struggle to maintain true decentralization has given rise to practical decentralized financial services. Today, crypto projects are seen as protection from economic collapse. Investors are looking for special decentralized solutions to protect their wealth from government defaults, economic uncertainty, and the deteriorating global geopolitical situation. Bitcoin has repeatedly proven its value as a safe haven asset during the COVID-19 period.