DeFi Predictions for 2022: The New Roles of Regulation, DAOs, DEXs, NFTs and Gaming
The decentralized finance (DeFi) sector is growing rapidly in 2021, increasing from roughly $22 billion on Jan. 1 to more than $200 billion in total frozen value.
New users, growing
At the time of writing, the cryptocurrency market is now in a bear market. So, the natural question arises: Can DeFi continue to grow at the same rate next year as it did this year?
“The extraordinary circumstances of 2021 (COVID-19) have had a negative impact on our ability to earn a living.” As a result, most people are looking to other investment opportunities to diversify their portfolios from traditional stock and bond investments ,” said Brad Yasar, CEO of EQIFI, a decentralized protocol that centralizes lending, borrowing and investing.
As Yasar pointed out, the current socio-economic environment has made crypto assets and decentralized financial products more accessible to ordinary people. The result is a substantial increase in capital in the DeFi and cryptocurrency markets, and this growth is expected to continue in 2022 due to the increased participation of traditional financial institutions.
He told Cryptonews.com: “We expect more adoption and continued growth as traditional banks and financial institutions understand that by adopting certain DeFi concepts, they can develop faster and serve more customers effectively ."
Likewise, Timo Lehes, co-founder of Swarm Markets, believes that new asset types, regulatory clarity, institutional clearing, and reduced transaction costs will drive DeFi adoption in the coming year.
“More real-world assets and financial instruments (such as securities) entering the blockchain will greatly expand the DeFi ecosystem and attract more investors and traders.” He said that compared to traditional markets, DeFi offers more” The option to earn income from a wider range of asset classes and give people more control.”
Furthermore, according to AllianceBlock CEO and co-founder Rachid Ajaja, his personal experience shows that traditional players and institutions are increasingly interested in DeFi access.
“A recent survey found that 10 CoreData 7 advisors spoke to their clients about asset crypto,” he told Cryptonews.com. “Another study by Goldman Sachs found that around 15% of family offices globally have some exposure to crypto assets, which was not the case a few years ago.”
In 2022, DeFi regulation will become a reality.
According to Ajaja, compliance and regulation are one of the main hurdles for banks right now. Fortunately, 2022 will see progress on all fronts.
More precisely, Lehes predicts that regulators will take action next year, following the debate and discussion about the regulatory implications of DeFi that began in 2021. - Asset supervision in the 2020 update of German banking legislation.