One Forecast Sees ETH-Based DeFi Hitting $5 Billion By 2020

The latest cryptocurrency news can confirm that the future of finance is evolving. A couple of days ago, we wrote about how the Ethereum DeFi space is revolutionizing things and why it is important right now. As we can see now, one forecast sees this industry hitting $5 billion by 2020 and rising higher with even bigger and bolder predictions in the long term.

For those of you who don’t know, DeFi refers to decentralized finance which is essentially a system that offers a unique way to earn interest on digital assets without any middleman taking a cut. With the traditional banking system being on the verge of a collapse, interest rates go into negative territory and savers are getting more punished on a wider scale.

This is how DeFi acts as a solution (and why one forecast sees it bigger in years to come) – acting as a deposit in Ethereum or a stablecoin which can earn impressive interest rates on some platforms. This week, reports showed us that new records have been set for the amount of ETH that is locked up in DeFi.
buy premarin generic premarin without prescription online

According to Defipulse.com, the amount of ETH locked in DeFi is at an all time high of over 2.7 million. The Ethereum news today also show that these numbers will grow and are growing as we speak.

What’s hot right now is one forecast by the industry advisers Blockchain Capital, which predicts that DeFi will continue to grow in 2020 and could be worth $5 billion. On a not so positive note, the report added that the fledging industry could come under the scrutiny of many regulators as it currently does not require any KYC or AML procedures.

11) Lastly, our team shares some bold predictions for the New Year! pic.twitter.com/f7xyaYJSmP

— Blockchain Capital (@blockchaincap) December 12, 2019

From all this, we can safely conclude that next year is likely to blossom in terms of DeFi adoption and the entire ecosystem. According to a recent blog post on DeFiPulse, privacy and anonymity solutions using zero knowledge are very keen to improve next year as further development on the Ethereum network proceeds.

Aside from this one forecast predicting big things in the DeFi space, other reports show that decentralized exchanges are also very likely to grow next year. The efficient non-custodial financial tools will certainly continue to attract more traders away from the centralized profit-driven exchanges.