DeFi needs to start creating real-world value if it wants to survive
2022.08.21 22:13
DeFi needs to start creating real-world value if it wants to survive
The total value locked in decentralized finance (DeFi) projects is hovering around $62 billion as of mid-August, down from a peak of over $250 billion in December 2021. Capital is fleeing the crypto space amid war, soaring inflation and whatever other surprises 2022 may still have in store for us.
However, unlike previous crypto bull runs, it was not just retail interest that drew in this capital in the first place. Rather, major institutional players, which have recently opened up to crypto, quickly developed an appetite for the yields DeFi is known for. But now that winter is upon us, the pitfalls of high-yield platforms have become more apparent.
Till Wendler is a co-founder of peaq. He worked previously as the head of operations at Advanced Blockchain AG between 2017 and 2020 and also served as the CEO at Axiomity AG, a blockchain services company.
