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S&P Global, a leading financial analytics agency, predicts an explosive growth in the DeFi industry, capable of surpassing the trends of the Metaverse and NFT tokens. According to the company’s specialists, smart contracts and blockchains competing with Ethereum will receive significant investments for development from the traditional banking sector.
S&P Global reminds in the report that it was the development of DeFi that contributed to the release of cryptocurrency capitalization to the level of $ 3 trillion in 2022 and the drop in the share of Bitcoin dominance to 39%.
Analysts emphasize in their report the fact that the developers of DeFi platforms did not come up with anything new, the largest number of “frozen” investments (TVL) attracted protocols that decentralize traditional financial services.
According to DeFiLama, the top 5 ranking includes smart contracts for landing services, which share with investors part of the earnings on loans issued against cryptocurrency collateral. Algorithmic stablokins and wrapped “Bitcoin” ranked third and fifth in the table.
Based on statistics, S&P Global concludes in the report that DeFi will not replace banks, but only complement their services. Decentralization in this case is not as important as the introduction of blockchain, the cryptography of which can eliminate some of the intermediaries of financial services. We are talking about underwriting, clearing houses, depositories, keeping registers of securities, etc.
The development of DeFi will allow banks to abandon them, significantly reducing the cost of corporate services. Similarly, the introduction of smart contracts will affect the issuance of loans and the launch of payment systems.
In 2022, banks will be forced to actively invest and develop DeFi, as well as stablecoins, in order to remain competitive. Companies will be forced to use public blockchains to develop trust in their innovative products. The emergence of institutional applications will raise the cost of utility tokens no less than in 2021, when their rate grew along with the explosive increase in TVL.
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