DeFi continues to thrive despite market crisis

Decentralized finance (DeFi) had its peak in last year's bull run it was popular in every social trend although decentralized systems are here to stay long term its reign declined rapidly with the introduction of non-fungible tokens (NFTs) that outpace Defi's popularity in the trending marketplace investors were attracted by large cash flow in NFT business now with web3 and metaverse gaining popularity NFTs have become a thing of the past.

Large money flows in the crypto space tend to determine the beginning of new market trends with Def, NFTs web3, and metaverse all introduced when blockchain technology came about, there is more room for the development of more interesting financial tools that will revolutionalize traditional financial services years from now.

image source

flaws in DeFi

DeFi has its shortcomings, which include the unavailability of direct fiat conversion; with crypto, not being a legal tender for most countries there's a need to always convert your liquid crypto assets to local cash before enjoying its real value, there's also coding manipulation from devs, DeFi gives one total control over their asset use which makes the user less vulnerable to such hacking problems, small deFi platform have low liquidity pool funding which makes exchange/swap of token slow, eliminating third party users on deFi also means you bear every risk of losing funds and take responsibility for every action taken by interacting with DeFi protocols.

Standing tall

Weighing the cons involved with interacting with DeFi's it's worth giving a shot, seeing an increase in centralized finance halting users' funds due to liquidity problems, deFi are considered as go option for executing day-to-day transactions lately.

With the recent FTX collapse, the need for a self-custodial wallet for users to connect on the go with decentralized applications (DApps) built on blockchain for trading crypto assets have seen a good turnout, Uniswap an Ethereum-based decentralized trading tool has seen a mass trading volume of users trying to perform their normal trading activities on the chain exchange. Other decentralized finance exchanges like PancakeSwap, Aave and more have seen increase volume in trade as traders chooses a more secure option for trading their crypto assets using hardware cold storage wallet without exposing their assets to centralized entities.

This new awaking shows decentralized apps (DApps) will in time continue to see an increase in use case as it gives total control over one's asset use also giving room for crypto adoption.