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What’s Next for DeFi? The Biggest DeFi Trends to Watch For

Relite Education
Sep 23, 2021
4 min read

Decentralized Finance (DeFi) is creating a metamorphosis in traditional finance, breaking a relationship largely dependent on a centralized ecosystem. DeFi is introducing a new way of practicing finance, consistent with the growth of a digital age where blockchain technology is the backbone of a global ecosystem. Total Value Locked (TVL) is now $172.71 billion and growing.

DeFi trends provide some of the best opportunities for both evolution of the technology and the ability to earn substantial profits. Some DeFi trends are more impactful than others. Knowing how to recognize DeFi trends and maximize the available opportunities will lead to life-changing wealth for many.


DeFi Explained

DeFi introduces the execution of financial transactions through decentralized applications away from a centralized body. Protocols using DeFi can facilitate transactions without intermediaries such as banks, governments, and legacy financial institutions. Collaboration within DeFi markets is completed via peer-to-peer, reducing the necessity for any facilitators.

What’s a DeFi Trend?

Like the most fashionable clothing wear, DeFi Trends is the most recent and popular development within decentralized finance. DeFi’s popularity has exploded in the past eighteen months, accelerated further following familiarization within the public consensus. Developments such as introducing new borrowing and lending protocols and DEX’s are examples of DeFi trends. The success of DeFi and the ensuing DeFi trends that follow encourage wider engagement from users and ongoing evolution of the nascent technology.

What are the latest DeFi Trends?

Several developments in DeFi are proving highly dynamic by nature. In a rapidly-paced environment such as DeFi, being the first to recognize and take advantage of a DeFi trend is highly advantageous. Recently, liquidity mining, also known as DeFi yield farming, was one of the hottest DeFi trends, leading to the ‘DeFi Summer’ in 2020.

Decentralized Exchanges such as Uniswap, Sushi, and Pancakeswap gained a massive influx of users of their services during this time, as the DeFi trend of yield farming exploded.

Top 3 DeFi trends to watch out for in 2021-2023

Legacy Financial institutions are introducing DeFi products: Traditional Finance is now fully aware of DeFi’s potential. An example is the launch of decentralized derivatives products. The current TVL of DeFi derivatives is estimated at $3.35B globally, up from $132M in 2020. Traditional financial products such as options trading are also becoming a hot DeFi trend for 2021 and beyond.


Cross-Chain Technology: Ethereum is viewed as the home of DeFi and the flagship platform. However, DeFi’s technology introduces major scalability issues, given the rapid growth of the DeFi ecosystem. During high times of congestion and breakneck growth, the ETH network becomes congested, causing almost unaffordable high gas fees. With many projects introducing cross-chain functionality in their products, this issue is being addressed.


Monetizing blockchain gaming: Gaming is tipped to become a significant DeFi trend by 2023. DeFi developers are hard at work, hoping to exploit the potential of two billion gamers worldwide by monetizing blockchain gaming. Instead of operations on a centralized server, the video games operate on a blockchain, allowing gamers to mine tokens during their gaming activities. In-game transferability enables asset owners to earn digital returns on their assets. This trend aims to capture a market with $159B in circulation annually and is projected to grow bigger.  


Will DeFi continue to grow?

Yes, DeFi will continue to grow at a steady rate in the foreseeable future, as will the above-mentioned DeFi trends. Most obstacles initially limiting DeFi’s growth continue to be addressed, paving the way for high sustainable development.


Our Verdict

With initial rigidity and inconvenience within DeFi’s environment causing apprehension among specific demographics, it’s evident DeFi is transitioning into an efficient, seamless, and open-ended ecosystem. With strong expectations of future growth and adoption, the future is bright.

Frequently Asked Questions (FAQs)

What is an example of DeFi? Ethereum is an example of DeFi. The ETH platform is the foundation for many DeFi protocols, and its currency and native token, Ether (ETH), is traded at crypto exchanges.

Is DeFi the next big thing? Yes, DeFi is slowly morphing into an economic revolution that aims to usurp traditional finance operations.

How do I get into DeFi? The primary mission of DeFi is to make financial markets easy, accessible, and seamless. Experiencing DeFi is simple. Start by identifying a project and downloading the relevant extension, create a wallet, set up a strong password, purchase the relevant coins, and finally immerse yourself in the world of DeFi.

What is the best DeFi Crypto? There are several great DeFi crypto projects. Ethereum (ETH), Chainlink (LINK), Uniswap (UNI), and Luna (TERRA) are just some of the most popular names within DeFi. Others worth noting include Avalanche (AVAX) and AAVE (AAVE).

Buy $RELI on Uniswap

$RELI Uniswap contract address: 0x0E58ED58E150dba5fd8e5D4A49F54C7e1E880124

Note: Please be aware that the only contract address for RELI is that stated above. There will be fraudulent versions of RELI. If in doubt, please ask an admin in the Relite Community.

Buy $RELI on Pancake Swap

$RELI Pancake Swap contract address: 0x7015a4b6ec17b64e09252a99f9f6e7feee6c37eb

Dextools Profile

Note: Please be aware that the only contract address for RELI is that stated above. There will be fraudulent versions of RELI. If in doubt, please ask an admin in the Relite Community.

Move your $RELI to Binance Smart Chain, or reverse it back to Ethereum. Check out the app bridge.

Stay tuned via Relite’s social media to learn more about what’s to come.

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XRP
XLM
Aave
BlockFi
Cake
Basic
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0.1%
2.7%
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Crypto.com
Nexo
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0.0%
0.1%
2.7%
YouHodler
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CoinLoan
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3.2
Basic
0.5%
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9.3%
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3.5
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5.0%
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7.5%
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4.0
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4.4%
5.3%
8.9%
8.9%
2.5%
3.1%
6.2%
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11.2%
11.2%
3.1%
3%
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1.5%
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6.0%
6.0%
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8.5%
8.5%
14.0%
14.0%
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5.0%
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3.7
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Up to 12.7% for all 25 supported crypto assets
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Up to 12.3% for all 18 supported crypto assets

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