Unstoppable DeFi is the future!
The data consultancy Chainalysis, one of the most relevant in the cryptoassets ecosystem, which recently published its annual report on the adoption rate of cryptocurrencies and blockchain technology worldwide, has now published its new report “DeFi Global Adoption Index” , where growth percentages of this nascent sector are revealed, as well as the countries that lead this aspect of the ecosystem.
The term may be quite new for those who are approaching the world of bitcoin, dogecoin, Ethereum, NFT’s or games like Axie infinite for the first time, but the truth is that, according to the consultancy, the growth of Decentralized Finance (DeFi), It has been one of the biggest stories in cryptocurrencies in the last 18 months. It’s been Unstoppable!
DeFi platforms, which are also known as protocols, have their operation in smart contracts that run on the blockchain, mainly the Ethereum network. Some of the most popular examples of DeFi protocols include decentralized cryptocurrency exchanges and lending platforms.
The DeFi Global Adoption Index 2021 Top 20
According to Chainalysis, unlike the recently released report on cryptocurrency adoption, many of the top countries in DeFi adoption are those with high gross volumes from cryptocurrency exchanges or loans.
They are generally upper-middle income countries or countries with already developed cryptocurrency markets, and in particular strong professional and institutional markets. Featured countries serve as examples, such as the United States, China, Vietnam, the United Kingdom, and several other Western European countries that rank high on the DeFi Adoption Index.
Web traffic to DeFi platforms: a revealing indicator
According to Chainalysis, North America accounted for the great majority of web traffic to DeFi protocols from April 2019 to June 2020, with Western Europe accounting for a substantial portion as of September 2019.
However, another revealing piece of information is knowing that institutional investors dominate a significant share of DEX as the report indicates that large transactions make up a much larger part of DeFi activity. Institutional transactions accounted for more than 60% of DeFi transactions in Q2 2021, compared to less than 50% for all cryptocurrency transactions. Professional transactions, large and small retail-sized retailers also accounted for a higher percentage of all cryptocurrency activity compared to DeFi’s activity in that same time frame.
Latin America is present in the DeFi 2021 ranking
Argentina and Brazil are present in the ranking of the 20 countries that use DeFi protocols the most globally, occupying positions 16 and 17 respectively. Which coincides with the recently announced cryptocurrency adoption report, where these countries ranked 12th and 13th, respectively.
The report points out that although emerging markets (such as Latin America) are promoting the adoption of cryptocurrencies, the truth is that it is due to the need of citizens to preserve their savings against the devaluation of the currency or to send or receive remittances in one more way. The adoption of DeFi, on the other hand, has been driven primarily by seasoned cryptocurrency traders and investors looking for new sources of ample profits on innovative platforms.
With 2022 just starting there’s a lot more to come!
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