The future of finance is evolving and DeFi based on Ethereum is at the forefront. This year has seen explosive growth in decentralized finance, despite the performance of the recession’s crypto assets. 2020 is ready to grow even more with the upcoming DeFi projections.
2020 may be too big for DeFi
Decentralized finances have literally exploded this year. It provides a unique way to earn interest on digital assets without deducting the intermediary. With the current traditional banking system on the verge of collapse and interest rates entering negative territory, savers are being punished on a large scale.
DeFi is the solution in the form of a deposit in Ethereum or a stable currency like Dai that can generate impressive interest rates on some platforms. This week, DeFi is blocked by the amount of ETH to establish new records.
According to Defipulse.com, the current amount of ETH closed at DeFi at an all-time high of more than 2.7 million. Dai also closed with earnings of 30 million. In USD terms, the figure is not far from its historical maximum with $665 million at this time.
The Blockchain Capital industry consultant predicted that DeFi will continue to grow in 2020 and can be valued at $5 billion. On such a positive note, he said that out-of-control industries could b under the scrutiny of regulators. Since they currently do not require KYC / AML procedures.
It is likely that a series of positive developments will announce the DeFi ecosystem next year. According to a recent defipulse blog post, privacy and anonymity solutions for blog posts that use zero-knowledge are likely to improve in 2020 as the Ethereum network grows even more in revenue.
Ethereum 2.0 stacking opportunities
Decentralized exchanges r also expected to grow next year and efficient non-custodial financial instruments will continue to attract more operators than centralized exchanges for profit.
Since Ethereum 2.0 will debut, there will be stacking opportunities on the net. So it will be interesting to see how the earnings compare directly between Stack and DeFi. The publication states that major exchanges are likely to offer ETH custody as they are currently doing with Tezos.
New services such as a decentralized stacking group and DeFi opportunities for ETH 2.0 next year move into space.
The demand for decentralized financing should not be underestimated, and a quick look at the state of the current banking system is enough to give a reason.