The future of DeFi depends on Ethereum

There is no doubt about it that the rise of Ethereum created Defi in the first place. No question about it that most DeFi places were based on Ethereum and direct inflow of Ethereum that helped create the most successful DeFi platforms like Sushiswap, Lycan and AAVE. And as a result the future of DeFi depends on Ethereum still.

The two have always been directly tied, and always proportional. In mid-February 2020, the total value locked within decentralized finance (DeFi) applications first exceeded $1 billion. Fueled by the DeFi summer of 2020, it wouldn’t even take a year before it multiplied 20-fold to reach $20 billion and only another ten months to reach $200 billion. Given the pace of growth so far, it doesn’t seem outlandish to imagine the DeFi markets hitting a trillion dollars within another year or two.

DeFi really grew with liquidity increase, especially as more and more people were invested in staking and making the best they can from it. As more and more money flowed into the DeFi space, more people were receiving returns for their stakes and more projects were sponsored, creating more value in the market. This is really the future.

Now that Eth is going towards the next update, there’s a real promise of DeFi going into hyper-drive as well. Eth will be a lot better, as projected by analysts already. The future promises faster transactions, higher speeds and a better experience, and this too will be reflected on the projects of the future. Especially those grounded in the school of Defi and web 3.0