Defi still an insider’s club, analysts say

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The party around crypto and defi is only starting according to a study by analyst and compliance tech builder Chainalysis.

 

Muyao Shen reporting at Coindesk cites a “global defi adoption index” looking at growth in the past 18 months in a variety of nations around the world.

 

One thing the study found was that countries with a bigger professional crypto base led the charge in defi adoption.

 

“The Chainalysis index used three metrics that emphasized grassroots DeFi activity – on-chain crypto volume received by DeFi platforms, total retail value (transactions of under $10,000) and individual deposits to DeFi platforms – to rank 154 countries,” Shen writes.

 

The coverage also includes a monetary growth estimate of $5 billion to $159 billion for the defi industry as a whole, provided by Defi Llama.

 

All in all, the reports suggest that if rank-and-file consumers and small investors follow leading trend activity, we’ll see even more buy-in for various types of decentralized finance assets.

 

That involves not only cryptocurrencies, but other kinds of blockchain instruments, too. For example, non-fungible tokens or NFTs are now getting their day in the sun, with a pop-culture relevance that a lot of people can get behind.

“NFT token value depends upon the token scarcity,” writes erangadot at Bitcoin21.org. “NFT tokens are rare and special, so it has high priced value as compared to fungible assets. It is easy to draw the huge attention of the right investors and reap massive profits…Many NFT enthusiasts are interested in creating, trading NFTs, and paving the way for NFT development growth. NFT popularity is rising, and the monthly sale increased double times when compared to past sales. It attracts many people to spend their money on NFT creation and gets unimaginable prices.”

There’s also the NFT’s uniqueness.

“An individual NFT has unique characteristics that dictate its peculiarity; hence the name ‘non-fungibles’,” writes TribalScale CEO Sheetal Jaitly at Medium. “They are much similar to rare and precious stones, works of art, and luxury things in general.”

Look for more of this in exchange markets and beyond.

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