Is DeFi Set To Be More Disruptive Than Bitcoin?

The crypto industry has been booming in the past years, and the biggest player has always been Bitcoin. It currently has a market cap of around $970 billion, which puts it around $800 billion ahead of Ethereum, the second-biggest cryptocurrency. And Ethereum’s market cap is still more than four times bigger than any other cryptocurrencies besides Bitcoin’s.

These numbers are very impressive, and it’s no wonder that people are stoked for Bitcoin’s future. That being said, in the few past months, decentralized finance (DeFi) has exploded, and it might just end up becoming bigger than Bitcoin.

At the moment, DeFi is one of the hottest topics in the crypto industry, and rightfully so. According to Bank of America analyst Francisco Blanch, “DeFi is [...] the most fundamental challenge to modern finance that we've encountered.”

While its numbers might not seem as exciting as Bitcoin’s at first glance, they are actually very impressive. At the end of 2020, the total value locked in DeFi was sitting at just around $16 billion.

However, in February 2021, the total value locked in the DeFi market reached around $40 billion. This means that the total value locked in DeFi more than doubled in only two months. Further, it should be noted that there is a difference between the total value locked in DeFi and the market cap of DeFi.

While the market cap is the market value of all outstanding shares, the total value locked expresses the dollar value of all tokens that are locked in the smart contract of any specific decentralized lending project.

See also: What is DeFi?

DeFi and what it offers

DeFi is an emerging and fast-growing category of digital, peer-to-peer financial services technologies that enable trading, interest accounts, loans, and more.

By using public blockchains and crypto assets rather than traditional systems, DeFi services cut out intermediaries, which, in turn, allows faster operation, around-the-clock availability, and full transparency as well as auditability. Further, it eliminates the need for minimums and reduces paperwork.

However, most DeFi products lack proper banking, so there is a gap between traditional finance and blockchain. This gap needs to be bridged to explore the full potential that DeFi has to offer.

That being said, there is one DeFi product, called EQIFi, that is powered by a regulated bank and bridges the gap between traditional finance and blockchain technology by combining the best of both worlds.

“DeFi is easily one of the most exciting developments in the financial sector in a long time, and a fundamental challenge to modern finance, as Mr Blanch claims,” said Jason Blick, EQIFi Chairman. “However,” Blick went on, “there are some issues those within the space are facing, including, for example, siloed operating models, legacy technology, and low liquidity.”

According to Blick, “the answer [to these issues] is a global debt marketplace for both borrowers and lenders with real-world safeguards, access, and bridges.”

EQIFi is bridging the gap between blockchain and finance

EQIFi is a global debt marketplace for both borrowers and lenders. Because this marketplace is powered by a regulated bank, it comes with real-world safeguards, access, and bridges.

“EQIFi is one global solution that replaces the need for multiple complex relationships with a single solution to the global needs of lending, borrowing, and investing,” said Blick.

Further, it is designed to offer one of the highest yield environments available in the sector, which makes it a great choice. Moreover, it provides floating-rate products, fixed-term products, and even interest rate swaps.

Additionally, by providing a single solution to the global needs of lending, borrowing, and investing, EQIFi eliminates the need of having to deal with multiple complex relationships.

Disclaimer: the writer does not have a relationship with EQIFi. This article is not financial advice and is educational in nature. Please consult your financial advisor before investing in any digital currencies or projects.