A lot has been said about decentralized finance, or DeFi, in recent months. Many people feel this is not the future of ethereum.
While those comments are valid, recent statistics show something else entirely.
DeFi is in a Very Good Place
Roughly $3.3 million in ether has been locked in DeFi solutions to date.
That is a pretty solid amount, albeit it won’t get too many people excited.
One also has to keep in mind the current ethereum price is far lower compared to its all-time high.
On Reddit, users expect the ethereum DeFi market to grow to $1 billion in the future.
Several developments can lead to such massive growth.
Either users continue to pour ETH into DeFI solutions, or the ether price recovers.
An 80% increase in value is sufficient to push the total value locked to $1 billion again.
Whether this will happen, is a different topic of debate.
A rising ethereum price will not necessarily be beneficial to the DeFi ecosystem as a whole.
It is certainly plausible that a price increase would force users to move funds out of such projects altogether.
Even so, all of this confirms that DeFi on ethereum is going according to plan.
While it may not be the driving use case yet, it is certainly a market no one can ignore.