DeFi Is The Fastest Growing Among Crypto Industries
An apparent trend is taking place within the crypto industries, with decentralized initiatives beginning to outpace centralized firms. In 2022 alone, over $2.7 billion was poured into global DeFi projects from investors – an astonishing 190% growth from 2021’s figures! On the other hand, investments in centralized entities dwindled by 73%, amounting to only 4.3 billion dollars at year-end.
Crypto Winter Has Substantially Reduced Investment In Crypto
Remarkably, during a time when most of the crypto-investment landscape was declining sharply – with 2021’s $31.92 billion investment down to only $18.25 billion in 2022 – the DeFi world saw tremendous surges in growth and development. Undoubtedly, the market made a dramatic transformation from 2021 to 2022. Despite two records achieved in the market’s total value during 2021, a bear market commenced in 2022 and may still be ongoing. On top of that, faith in central authorities dwindled rapidly after LUNA and FTX’s downfall. Unfortunately, at this moment, bitcoin is still unable to regain its bullish trend. The year 2023 began with some cheer, but talking about a new bull market would be premature. Thus far, the signs look optimistic, yet there is no guarantee that they will continue in the same direction.
DeFi Is The Most Growing Industry
Reports from CoinGecko, which are dependent on information acquired by DefiLlama, suggest that DeFi may, in fact, be the new epicenter of the growth in the crypto industries. Coingecko’s report implies that a decrease in investment toward centralized projects could signify this part of the crypto field has attained its peak saturation point. In comparison to every other sector within the cryptocurrency industries, DeFi was a shining star of success that experienced substantial growth in investment from 2021-2022. As for all other sectors, they have suffered greatly and declined heavily in terms of investments—except for “blockchain technology or services,” which showed some slight increase during this same period.