DeFi: Reborn | A Spartan Labs x CoinMarketCap State of the DeFi Industry Report
Since its conception in 2016, Decentralised Finance, or DeFi as it is more commonly known, has taken the crypto space by storm. Forged in the crypto winter of 2018, early DeFi applications set the foundations for the huge wave of applications that came to define the DeFi Summer of 2020.
New DeFi innovations were born, including Automated Market Makers (AMMs), Yield Farming, Decentralised Stablecoins and Vault Strategies. At this point, DeFi was booming. tAt its peak, almost a quarter of a trillion dollars were locked in DeFi applications. But alas, this Golden Age did not last for long.
2022 brought about tremendous headwinds for DeFi and crypto in general, with macroeconomic concerns and the subsequent large-scale collapses of Three Arrows Capital, the Terra ecosystem, and several CeFi lenders in the space leading to a collapse of DeFi’s total value locked (TVL). Not all is doom and gloom though; sometimes such a collapse is necessary for a proper rebirth.
As we rebuild again from the ashes of the past cycle, attitudes have shifted toward better designed and more sustainable forms of tokenomics design. Other innovations have also emerged, such as synthetic and derivative assets. What we build, and the narratives that take hold now, will shape the future of DeFi for years to come.
“DeFi: Reborn” discusses the history of DeFi, what it has achieved, where we stand today and where we might be heading to in the future. From a thought experiment in 2016 to creating the bustling ecosystems we have today within the crypto space, DeFi has certainly come a long way.
Despite the tumultuous environment that 2022 has brought about, these challenges will only continue to shape the state of DeFi, one that is most certainly still a work in progress. It will continue to evolve and adapt to challenges. What may come, only time will tell, but one thing is certain: DeFi is here to stay and has so much more to offer.
You can access the full report here:
Check out the report on CoinMarketCap here: