Chainlink founder: DeFi to break trillion dollars in TVL next year

DeFi boom still growing strong from last year’s fire

According to Decrypt 8, Sergey Nazarov, founder of the prophecy machine project Chainlink, said at this year’s Ethereal summit, “The value locked in DeFi will be another zero next year. So if it’s $70 billion now, it’s going to be $700 billion, maybe up to $1 trillion – it’s going to become hard to ignore.”

Chainlink founder: DeFi to break trillion dollars in TVL next year

According to DeFi Pulse data, TVL now exceeds $80.1 billion, a new record high. Since the beginning of this month $68.4 billion growth of 17.1%, compared with the same period last year $ 0.96 billion, more than 8 times has been greatly increased.

Chainlink founder: DeFi to break trillion dollars in TVL next year

And Nazarov’s bullish attitude about DeFi’s prospects is no surprise, as Chainlink’s prophecy machine is itself an important tool in the field, linking external, off-chain data to the blockchain.

According to CoinMarketCap, the Chainlink network’s native token, LINK, was quoted at $49 by press time, up 27.1% in seven days, ranking as the 12th largest cryptocurrency and 2nd largest DeFi token with a market cap of $20.6 billion.

The largest DeFi token by market cap is Uniswap (UNI), a mainstream decentralized exchange with a market cap of $21 billion, which was quoted at $40 by press time, down 2.19% in seven days.

The DeFi boom has continued to grow strongly since last year, drawing the attention of the Bank of Japan (BOJ), the country’s central bank, which released a DeFi research report on April 28.

As reported by the foreign media CryptoNews yesterday, the document was released by the BOJ’s payment and settlement system department, which is responsible for formulating the central bank’s payment policy development. The report covers topics such as DeFi’s liquidity mining, the rise of autonomous financial services and the pursuit of governance.

On the topic of regulatory policy for the DeFi industry, the BOJ says that because of its inherent nature, it is difficult to ensure that central bank, financial regulator and government regulations are effectively enforced. The report also identifies the potential advantages and disadvantages of DeFi, including

Advantages: increased competition within the financial industry; creation of new financial services; improved accessibility to financial goods and services

Disadvantages: lack of regulation and potential problems in the case of leveraged agreements; smart contract vulnerabilities; lack of a centralized auditor and complex user protection

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/chainlink-founder-defi-to-break-trillion-dollars-in-tvl-next-year/
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