Does DeFi need new innovation after three years of TVL stagnation?

Does DeFi need new innovation after three years of TVL stagnation?

There is visible growth among some of the most prominent sectors of the crypto ecosystem; However, decentralized finance (DeFi) appears to be lagging behind. Noting this anomaly, Patrick Hansen, Circle’s senior policy director for Europe, defended that the sector needs a complete reform.

There is visible growth among some of the most prominent sectors of the crypto ecosystem; However, decentralized finance (DeFi) appears to be lagging behind. Noting this anomaly, Patrick Hansen, Circle’s senior policy director for Europe, defended that the sector needs a complete reform.

Advertisement

DeFi issue is in the spotlight

According to Hansen’s observation, DeFi’s total value locked (TVL) has remained at the same level as it was over three years ago. According to Hansen, this metric is even less than half of what it is if Liquid Stake’s equity lock is excluded.

Related
Tron’s Justin Sun Breaks Silence on Latest Ethereum Bets

According to data from DeFiLlama, DeFi TVL is currently pegged at $142.347 billion, a drop of over $220 billion as of December 2021. This massive drop comes despite a growing number of dApps on Ethereum (ETH) and others. protocols with deep connections to smart contracts. Financial applications.

For an industry that is evolving outwards, Patrick Hansen suggests there should be a significant difference in the locked TVL. While the policy expert noted that TVL is a flawed metric for judging holistic market performance, he noted that DeFi needs a new wave of innovations and applications in general.

Why regulation can hinder innovation

The focus of traders in the market has noticeably shifted in recent years towards Ethereum recovery protocols. This is the main aspect of the DeFi ecosystem that recorded a significant rally, with Lido DAO and EigenLayer leading the way in this regard.

However, the intention to innovate may face significant market pressure in the future. This is based on the tough regulatory climate in the United States, the main liquidity market for DeFi.

Related
Robinhood CEO breaks silence amid SEC drama

Uniswap, the leading protocol pioneer in the world of decentralized exchange (DEX), has received a Wells Notice from the US Securities and Exchange Commission (SEC).

Despite Hansen’s calls for new innovations, these regulatory hurdles could impact and dampen optimism.

Leave a Reply

Your email address will not be published. Required fields are marked *

Best Exchanges
Buy, trade, and hold 600+ cryptocurrencies on Binance
Buy, trade, and hold 450+ cryptocurrencies on ByBit
Buy, trade, and hold 150+ cryptocurrencies on Kucoin
Buy, trade, and hold 100+ cryptocurrencies on BitFinex 
Buy, trade, and hold 150+ cryptocurrencies on CoinBase

Guru Investing is an independent source of information about investing , not controlled by any broker. All our reviews and guides are created honestly, according to the best knowledge and judgement of the members of our independent expert team; however, they are intended for informative purposes only and should not be construed as, nor relied upon as, legal advice. You should always make sure that you meet all regulatory requirements before making any financial operations . Copyright ©2024 Email for contact [email protected]
follow telegram
pornhd.com hindisexyporn.com kashmiri girls sex jayasex indaporn.info desi bhabi xxx xlnindia sexo-vids.com 1st time sex video たかはししょうこ動画 javfuck.mobi 真正中出し3本番 彩乃なな sex film sexy film xxxhindividoes.com xnxx indian teens
ano nga ba ang pangarap iwantmoreteleserye.com hello heart episode 3 reshma hot saree images nuporn.mobi xvidies com bihar chudai tubezaur.mobi heroine photo hot dasixx hardcoreporntrends.com ileana d'cruz hot photoshoot www.xxxsexvideo.com xbeegtube.mobi hindi movi
www sxe vidoes erohardcore.info boops sucking dehati fuck kitporn.info chuk chuk rail fuckcomix.com mojoporntube.net gujaratisexvidio probinsyano october 18 2021 full episode freeteleseryetv.net ang probinsyano july 14 2022 قصص سكس كرتون cmsextra.net سكس بنات تخينة