The decentralized finance (DeFi) market witnessed very strong growth since the DeFi summer of 2020 and over the last year. We have seen several Ethereum Layer-1 competitors like Solana and Fantom coming to fame.
However, the recent crash in the crypto space has particularly hit the DeFi space very hard. Although Bitcoin witnessed a 50% correction since November 2021, some of the most popular DeFi protocols like Compound, AAVE and MakerDAO faced deeper corrections.
Apart from strong liquidations, the DeFi sector has also recently witnessed developer departures and user exodus. Pedro Herrera, senior data analyst at tracker DappRadar said that if the crypto bear market last for a year, we can probably see 80% of the DeFi apps flushed out of the market. In a word with Bloomberg, Herrera said:
“As far as crypto winter, DeFi dapps have never gone through it. They have experienced crashes, but this feels like a prologued one. Probably 20% of the apps that hold 80% of the industry value will
We współpracy z: https://coingape.com/dappradar-strong-possibility-of-defi-shakeout-in-2022-amid-crypto-user-exodus/
