The financial industry is constantly changing, but decentralised finance (DeFi) is becoming more vital. It has seen dramatic growth in popularity since the year 2020 – this year, 2022, has even been dubbed the ‘Year of Defi’. The crypto market has seen tremendous upheaval in recent months and substantial instability at the state of 2020, whereas DeFi projects have flourished and saw a significant rise in value and price. Investors are now placing greater attention on Defi with assets reaching record highs across the world.
The popularity and interest in DeFi is forecast to grow due to the pipeline of opportunities it provides the financial world, as well as its ability to further evolve security measures for safer transactions. But it is important to first understand what DeFi is, why it has experienced such tremendous growth, and why it is predicted to continue to do so.