DeFi Could Potentially Grow By Over $500B In 2022
ADALend Aims For High Market Share
Decentralized finance, or DeFi, is a subset of the blockchain industry that aims to provide a decentralized version of mainstream financial services. Over the last two years, the industry has grown from $1B in January of 2020 to a staggering $98B in September 2021 (Statista), surpassing all expectations.
DeFi’s growth has been sparked by a flood of private and institutional investors attracted by better returns and better rates offered by the lending and borrowing protocols provided in the DeFi space.
DeFi has a lot more room for growth; according to CoinGecko, DeFi has only acquired 5% of the market capacity of cryptocurrencies. “Right now, we’re sitting at a DeFi market cap of about $80 billion. My sense is that a year from now, it will add a zero,” Roszak, co-founder of the DeFi platform Vesper (BusinessInsider).
DeFi Industry Will Expand
There are various reasons why the industry will continue to grow exponentially.
- Development in the industry is poised to absorb more capital so long as new projects rolling out will continue to offer quality services.
- Shaky markets are scaring off the new generation of traders who entered the market last year, finding a haven in the comfort of DeFi lending protocols and safe returns.
- Inflation is another concern for investors who find the USD losing more inherent value each day in comparison to the crypto market, which saw an explosion in price value across the board.
ADALend Aims To Dominate The Market
ADALend is built in a way that makes it a contender to lead the DeFi space. Built on the Cardano blockchain, it incorporates all of the strengths and none of the weaknesses that other DeFi protocols are trying to overcome.
- Optimum Security: With the constantly heightening rates of cryptocurrency-related crimes, ensuring adequate security of users and assets remains a priority. Cardano, as a lead proof-of-stake platform, provides an absolute and proven safety of its users.
- Third-generation Blockchain: ADA is developed to overcome challenges encountered in using other crypto platforms. Cardano is regarded as a better and more dependable digital investment in comparison to other cryptocurrency assets.
- On-Demand Lending: ADALend decentralized application basis provides an immediate reply to loan requests which depends exclusively on the borrower’s eligibility to request a loan. This involves how much the borrower understands guiding rules. First-time borrowers may experience difficulties in analyzing the actual value of requested tokens. This group of borrowers needs to apply extra caution in setting the appropriate value of collaterals, as overvalued collaterals may discourage prospect lenders, restricting funding of the loans.
- Academic Backing: Cardano is one of the few coins academicians and well-known institutions worldwide utilize and endorse. This adds to its value and increases its stability.
- Trustless Operation: Cardano operates on a 100% trustee venture, lessening the need to trust the borrowing party as a lender. Once a borrower puts up a loan request on ADALend, the lending party, ADALend platform, or any other party cannot hinder the said loan request from being activated once the loan amount is granted. So in place of trusting the borrowing party as the lender, decentralization strategies and procedures are utilized to limit the necessity of trusting the borrower, significantly limiting associated risks involved with the implemented borrowing system.
- Multiple layers: Cardano imbibes several techniques to enhance rapid transactions and increase scalability by implementing settlement and computational layers.