Is DeFi dead?

[BrianH]

Is DeFi dead?

• With China effectively banning crypto.
• India planning a ban.
• Europe and US planning to force users into centralized exchanges through KYC.
• South Korea is already forcing KYC and banning certain altcoins.

This will encapsulate roughly 90% of the money in crypto.

Let's look at what DeFi is supposed to offer:

• Decentralized exchanges (DEXs) - Effectively banned.
• Stablecoins - to be replaced by CBDCs
• Lending platforms - Effectively banned or no different than banks.
• "Wrapped" bitcoins (WBTC) - still around, but limited utility.
• Prediction markets - are there any? Will likely be regulated as a security, in near future.

Is DeFi dead? What good is it anymore? What utility will altcoins like ADA even offer?

It certainly seems like it will be in the US and Europe if residents don't make their voices heard to stop imminent crypto legislation.

[jrrsparkles]

China banned mining not the bitcoin

India is banning bitcoin for a decade now.

USA and UK regulated cryptos.

And DeFi has nothing to do with the bitcoin regulations, DeFi hype ended so you are not seeing much news about it now.

[TheMimic1]

DeFI hype is no more since 2020 4th quarter, it was a very good experience as many DeFI projects brings good profits for me but the ban on crypto isn't going to work out, china ban mining in the country and India never have a good plan for crypto anyways as they always ban but believe me all this won't have any negative impact, the only thing that have negative impact on crypto was covid19 and that's not going to happen again hopefully

[viananda2525]

all of fud only effective for short time only but slowly its negative effect will gone by it self. we ever heard crytocurrency project will die in near time , and even several super power country use serious action to realized it.but the market still alive now due no one could controll crypto market. personally my concern now changes to NFT gaming project , its a wonderfull breakthrough from dev team.

[adekogbe]

Defi isn't dead and cant die, the problems that you raised in your message here are general cryptocurrency problems and most of them have been existing for a long time but cryptocurrency is still thriving.
It is normal for governments to try and control the use of cryptocurrencies the best way they can but decentralized finance is an innovation that is doing great especially with the increased use of NFTs.

[SquirrelJulietGarden]

China banned mining not the bitcoin

China bans Bitcoin mining in some areas of China mainland and does not ban it nationwide.

India is banning bitcoin for a decade now.

India does not ban Bitcoin. Bitcoin Gains by Country: Who Benefited the Most from the 2020 Boom?. India is in top big gains by country. There are many crypto exchanges from India, Warzix for example.

And DeFi has nothing to do with the bitcoin regulations, DeFi hype ended so you are not seeing much news about it now.

Governments will do more regulations on Bitcoin, crypto, stable coins and DeFi but it won't be apocalypse for DeFi projects. If they are legit companies, and obey regulations, they will be allowed to operate.

[Yogee]

DeFi cointinues to evolve while regulatros are still trying to catch up to the trend. It will probably reach a plateau at some point and the whole DeFi space will be subject to a level of regulation. I won't be surprised if that happens since I know the "De" is not really decentralized and these projects are using the word loosely.

[cryptoknows]

DeFi may have come to a standstill within the Ethereum ecosystem for a while. Many projects have already settled in the minds of many cryptoenthusiasts and this is a lot of competition. Check out new DeFi projects on many cross-chain platforms like Solana, Near Protocol, Matic. Everything is just beginning inside their ecosystems, and perhaps there you can find an interesting DeFi project for you.

[jrrsparkles]

China banned mining not the bitcoin

China bans Bitcoin mining in some areas of China mainland and does not ban it nationwide.

India is banning bitcoin for a decade now.

India does not ban Bitcoin. Bitcoin Gains by Country: Who Benefited the Most from the 2020 Boom?. India is in top big gains by country. There are many crypto exchanges from India, Warzix for example.

And DeFi has nothing to do with the bitcoin regulations, DeFi hype ended so you are not seeing much news about it now.

Governments will do more regulations on Bitcoin, crypto, stable coins and DeFi but it won't be apocalypse for DeFi projects. If they are legit companies, and obey regulations, they will be allowed to operate.

You didn't get the sarcasm buddy, sorry if I just kept too simple to understand.

China ban news related to crypto currency existing here for very long time and especially everytime when the price gets bullish so its not letting the bitcoin down but contrarily helping bitcoin.

About India ban by their central banks from 2017 but recently such ban also lifted by the court judgement and after that the central bank advised them to ban by making new policy but government of India is not going to look cryptos for now since they have lot on their priority list.

[Dragonfund]

With DeFi or not, KYC will remain on top centralized exchanges, this is a measure to mitigate fraud and scammers. This has help so far and I don't think kyc affects DeFi that much, even the so called DeFi platform have a limitation to services they offer, once you try to cross the limit, they will ask you to go for kyc.
About ban, I'm even happy about bitcoin mining ban. We don't have to be play by China time bitcoin increase in value because they always come with this anti ban shit to destroy bitcoin but now that they don't have anything to ban, bitcoin can now enjoy without any hindrance.

[capcaypro]

DeFi hype has started to be pushed aside and is no longer as interesting and enthusiastic as it used to be but that doesn't mean defi is dead because as far as I know there are still some that are still running and if I'm not mistaken Mark Cuban once said there is a crypto-based DeFi and this is proof that DeFi isn't dead yet.
but the hype is now being replaced by NFT which is experiencing a positive trend in the last few months I think.

[btcltcdigger]

It's anything BUT dead. Even with these bans, it's utility grows, as people seek new ways to invest their money.
Defi is certainly one of them.

[Refrumatrix]

DeFI reign is officially over, now we have NFT and they are more than just the hypes surrounding DeFI projects, I meant NFT projects are way better in terms of utilities, most DeFI projects don't have any real use case than decentralized finance aka Yield farming but NFT has what it takes

[ectbit]

Dead? haha

Everyday many people earn a lot of money from DeFi projects. If you are careful not to get rugpulled or to step on scam then you can earn a small or higher piece.

I don't know if NFT is better or just a hype, this is a big discussion

[retnoanjani]

DeFi may have come to a standstill within the Ethereum ecosystem for a while. Many projects have already settled in the minds of many cryptoenthusiasts and this is a lot of competition. Check out new DeFi projects on many cross-chain platforms like Solana, Near Protocol, Matic. Everything is just beginning inside their ecosystems, and perhaps there you can find an interesting DeFi project for you.

while there are other more interesting trends right now for example NFT and some meme coin moments. so defi seems dim. actually the defi market is still there and growing pretty well as you mentioned, but it's not as booming as it was last year, where all projects almost embed the word "defi" in their introduction. trend is always changing, developers are trying to adapt to this to strengthen market support.

[Slow death]

don't worry that in the cryptocurrency market whenever you create something dies to make way for something new, we had ICOs that died, now DEFI that will follow the same path as ICO, and we have NFT that after some time also holds the same path as the ICOs. always have this cycle

[AmoreJaz]

don't worry that in the cryptocurrency market whenever you create something dies to make way for something new, we had ICOs that died, now DEFI that will follow the same path as ICO, and we have NFT that after some time also holds the same path as the ICOs. always have this cycle

defi is not yet dead but it is now facing potential reduction of user-base. people are realising that passive income via staking or farming is not possible if the platform itself is not rock solid with less number of clients. not all defis can survive in this market, some are already exiting the game owed to hacking or other internal problems.
but with NFT, i guess, this one will survive long. it is just in the early phase and it is attracting a lot of audience already coming from popular personalities, athletes, artists. they are discovering that creating their own NFT collection is a new digital way to connect with their fans and this will be a lucrative industry.

just few personalities who are already into NFT (and there's a lot more) -

Manny Pacquiao
Tony Hawk
Paris Hilton
Beeple

[tabas]

Not yet.
https://coinmarketcap.com/view/defi/
Look at that list and see how much money that's still on the Defi's. That's why I don't think that defi's are dead.

[asriloni]

Bunch of defi are still alive right now. It's quite impossible for the defi to be dead. people are using the centralized exchange site as a gateway to put their money to get into the defi ecosystem. The defi itself is still relatively news. it has been 2 years since the first defi already introduced to the market. The defi will still alive and it will not die. The only hype will be gone but it could also come back again anytime.

[FairUser]

You give us a wide range of information and FUD in the market,
maybe I think I'll see you soon with topics like 'deFi revival after death..' stuff like that.
Perhaps you are well-prepared for the big changes in the near future.