Coinbase Co-Founder: DeFi Sector Is Growing Exponential
The growth of the decentralized finance sector, or DeFi, with the increase in the number of platforms and products, becomes exponential. This was stated by Coinbase CEO Brian Armstrong during the next session of the AMA (Ask Me Anything - Ask Me Anything).
Decentralized finance services are gaining popularity even despite the scalability problems of the Ethereum network, on which the vast majority of such applications are based.
Coinbase Custody CEO Sam McIngvale, who also participated in the AMA session, noted that in recent months a lot of new participants have come to the sector and they are not afraid to experiment with their products.
What Is DeFi?
At the core of the DeFi sector is the idea that the cryptocurrency industry will be able to recreate traditional financial instruments in a decentralized environment. Instruments obtained in this way will be free from the control of companies and governments.
The DeFi Pulse portal offers a measure of sector growth by the number of ETHs reserved for ecosystem needs. Over the past year, the sector has more than tripled: from 1.06 million ETH ($ 210.6 million) to 3.4 million ETH ($ 614.4 million).
In September, Coinbase announced the creation of USDC Bootstrap Fun, an initiative aimed at stimulating further growth of the DeFi sector. As the name implies, decentralized application developers will be supported by a fund consisting of USDC tokens.
Also last month, another cryptocurrency company, Ripple, acquired the Logos Network platform, with which the company will develop technical solutions in the field of DeFi.
Chinese companies are also showing interest in the decentralized finance sector. For example, a division of one of the largest state-owned banks of China, China Merchants Bank - China Merchants Bank International (CMBI) - and the Nervos startup blockchain signed an agreement on cooperation in this area.
The bank plans to use Nervos and its blockchain Common Knowledge Base to create DeFi applications. CMBI will also use the Nervos architecture to scale its services without sacrificing security and performance.