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Why the growing interest in UNI, Chainlink, AAVE doesn’t tell the whole story




Decentralized Finance (DeFi) is often referred to as the future of digital financial transactions. Now that is only possible when people are not only willing to accept it, but are also technologically capable of embracing it. So will only technologically developed countries really embrace DeFi? Most importantly, which country will lead this “global DeFi rally”?

DeFi adoption around the world

It turns out that more and more people have been willing to adopt DeFi over the years. They aren’t limited to developed countries either, with names like Vietnam and Thailand ranking second and third, respectively, on the DeFi Global Adoption Index.

Ranking of countries according to DeFi adoption | Source: Chainalysis

As can be seen from the accompanying chart, based on data from multiple DeFi metrics, each country was assigned a figure between 0 and 1. While the US is leading this adoption, developing countries are equally excited about adoption. by DeFi.

Several DeFi startups in Vietnam have been raising funds to develop platforms. Also in Thailand, centralized banks such as the Siam Commercial Bank, as well as the Kbank, have been making efforts to adopt DeFi.

But who really drives the bus?

Institutions. Since the crypto-madness began in 2020, various entities have changed their position on them. Initially, DeFi was run by industry professionals. However, since the fourth quarter of 2020, they have changed hands with the institutions. In less than a year, the contribution of institutions to the DeFi space has grown from 7% to 65%.

While retailers were expected to grow in this space as well, the opposite has happened. In fact, the retail trade figures have dropped significantly. Still, this has considerably benefited multiple DeFi tokens and their price actions.




Distribution of the maximum activity of Defi by entities | Source: Chainalysis

Consider this: Leading DeFi tokens like AAVE, Uniswap, and Chainlink rallied over the last month.

Time AAVE went from $ 222 to $ 398, its investors recorded more than 82% in profits. Similarly, Uniswap was also up 94%, touching $ 28 on the charts. However, it was Chainlink that increased by more than 105% as it also reached the $ 28 level.

LINK recovered by 105% | Source: TradingView – AMBCrypto

DeFi is starting to see more adoption these days, and it goes beyond its tech shackles. This will continue to be the case going forward, especially as investors continue to make profits along the way.

This is a machine translation of our English version.

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TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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