Top Trends That Have Revolutionised The Cryptocurrency Space
By CNBCTV18.com May 31, 2023 6:03:52 PM IST (Published)
Over the past decade, technological breakthroughs within cryptocurrencies have paved the way for mini-trends to emerge in the industry. For instance, the launch of Central Bank Digital Currency (CBDC) projects, DeFi protocols, NFT collections, decentralised exchanges, and so on, are examples of such mini-trends. Even though all of these concepts are still in their nascent stage, they have already begun to shape the cryptocurrency space. Let us take a closer look at the top trends within the crypto industry.
Decentralised Finance (DeFi)
One of the most popular and important trends observed in the cryptocurrency sector is decentralized finance (DeFi). DeFi is a concept that encompasses an ecosystem of financial services and products built on blockchain networks.
The DeFi space has witnessed remarkable growth in the past few years. According to DefiLlama, the total value locked (TVL) in DeFi protocols stood at $15 billion at the beginning of 2021 but soared to $166 billion by the year’s end. However, since then, DeFi valuations have struggled to match earlier levels due to weak crypto prices.
Nonetheless, the same has not stopped the emergence of new projects, protocols, and offerings within the DeFi sector. Recently, the most notable developments in DeFi include cross-chain interoperability and layer-2 solutions.