Fund managers: these 3 catalysts could drive greater adoption of Ethereum DeFi

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He shared four pivotal metrics indicating that "Breaking out in spectacular fashion." They are as follows: there is now $4.27 billion worth of assets locked in DeFi by 300,000 users, $10 billion has been traded on decentralized exchanges over the past 12 months, there is $1.42 billion worth of outstanding decentralized loans.

Fund managers in the space believe that DeFi can grow even faster if these three catalysts/trends are realized.

Developers need to improve scalability, fiat on-ramps, and infrastructure to catalyze faster growth in Ethereum DeFi.

Ethereum's DeFi space has been lauded over recent months for its rapid growth and innovation, but the blockchain is far from perfect.

Arguably the most important of these three is the former as high costs and slow transaction times would automatically cut down the potential user base of DeFi to a fraction of its original size.

Rew Kang, a DeFi analyst and founder of Mechanism Capital, argued that DeFi likely isn't in a bubble due to the development of the space "Hitting an inflection point" with more on-chain liquidity, better development tools, successful case studies, education, and much more.

Publicly adoptable DeFi protocols are arguably needed now more than ever before.

With yields on financial assets low, access to loans uncertain, and a devaluing U.S. dollar, a move to an alternative system that DeFi can provide may be seen as valuable for many consumers.

"The chase for yield in DeFi will only continue to grow exponentially. $3.5 billion USD locked in DeFi, nearly $15 trillion locked in negative yielding debt."

The chase for yield in DeFi will only continue to grow exponentially.

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