Decentralised financing (DeFi) has experienced parabolic growth since the beginning of 2020, with the total value of these contracts, which are largely based on Ethereum, rising from $1 billion to the current $12 billion.
Decentralised stock exchanges (dexs) have been a key factor in this growth. In 2017 and 2018, many considered these applications to be clunky, as transaction fees were high and the user experience was slow and confusing.
But with the introduction of uniswap and other decentralised exchanges, the situation began to change. At several points last summer, the volume and liquidity of decentralised exchanges exceeded the volume and liquidity of top exchanges such as Coinbase.
However, this growth may not yet be over. Top analysts in the industry expect the Ethereum indices to continue to rise in the coming weeks and years.
This should lead to a rally in the entire DeFi area and probably also at ETH itself, which will benefit from this influx of interest in decentralised processing.
Decentralised stock exchanges will grow even stronger according to analysts
Crypto-asset analyst Qiao Wang believes that two fundamental trends will boost decentralised stock markets in the coming months and next year.
First, after months and years of development, Ethereum’s Layer 1 and 2 solutions will be used. It is expected that Optimistic Ethereum will be introduced, enabling DeFi transactions on a more private, cheaper and more efficient second layer.
Other companies such as Starkware and Matter Labs are also working on promising scaling solutions that should lead to a better user experience.
The second reason why Dexs could take off There have been a number of problems with centralised exchanges recently.
Bithumb was searched. KuCoin has been hacked. Recently, BitMEX was https://www.stemcellsummit.com/bitcoin-loophole/ accused by the US CFTC of derivatives and money laundering violations, while OKEx suddenly stopped withdrawals because a private key holder of the organisation went offline.
„It can hardly be stressed enough how important it is that 1) Ethereum L2s and scalable L1s go online and 2) what has happened to Kucoin/Bitmex/Okex in the last 2 weeks The timing couldn’t be better for the decentralised futures/swap exchanges to finally take off in 2021“.
Uniswap could take the lead in this new era of Dexs with the introduction of the third iteration of the protocol, „v3“.
It is expected that the team behind the protocol will bring out a revised exchange that will significantly improve the user experience. The company recently announced that it had completed a $11 million Series A round in August under the leadership of „Andreessen Horowitz with additional investment from UPS, Paradigm, Version One, Variant, Parafi Capital, SV Angel and A.Capital“ for this upgrade.
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