he DeFi space is constantly evolving with innovation making way for new solutions and products almost daily. June has been no exception with the crypto market experiencing volatility, Binance increasing their weight in the NFT market and Solana Labs announcing the launch of the first Web3 mobile phone. Here's what happened in the DeFi space during June.
Crypto entered a bear market
Cryptocurrencies entered a bear market in mid-May and prices have continued to decline throughout June. This has caused a lot of defi protocols to either perform better or worse depending on how they are structured. For example, MakerDAO's Dai stablecoin has outperformed USDT as investors seek safe havens for their money. However, protocols that are collateralized by ETH such as
NewYork published stablecoin guidance
The New York State Department of Financial Services (NYDFS) has published new guidance on stablecoins. The guidance covers three types of stablecoins – backed by fiat currency, backed by commodities and backed by other cryptocurrencies. It is the first time that a US regulator has provided specific guidance on stablecoins.
Solana Labs launches the first Web3 mobile phone
Solana Labs, the company behind the Solana blockchain, made headlines this month when it announced the launch of the world's first Web3 mobile phone. The phone, which is called the SOLO Phone, is designed to be a decentralized alternative to traditional smartphones and will run on the Solana network. The phone is currently available for pre-order and is expected to ship in Q4 2022.
What's next for DeFi?
Over the next few months , we can expect to see more innovation in the DeFi space as developers continue to build on existing protocols and create new ones. With the increasing popularity of DeFi, we can also expect to see more mainstream companies enter the space and offer their own decentralized solutions.
For example, Nike has already announced that it is working on an NFT platform called Nike Icons, which will allow users to create and trade digital collectibles. The platform is currently in development and is expected to launch later this year.
As the DeFi space continues to grow and evolve, we can expect to see more exciting developments in the months to come. SokuSwap are launching a v2 DEX which will include a cross-chain aggregator that will over 9 different blockchain networks. These kinds of advances will allow for more efficient trading and make the transition to DeFi easier.
DeFi Trends to Watch
Traditional finance will enter the DeFi space
The value of financial derivatives on Ethereum has surpassed $1 billion for the first time ever, according to data from Skew. This is a significant milestone for the DeFi space as it shows that traditional financial institutions are starting to take notice of the potential of decentralized finance.
As more and more institutional investors enter the space, we can expect to see an influx of capital that will lead to even more innovation and growth in the DeFi space.
Blockchain gaming will continue to rise
NFTs have been one of the hottest topics in the crypto space over the past few months, and that trend is showing no signs of slowing down.
The popularity of NFTs is being driven by the rise of blockchain gaming, which allows players to own their in-game items and assets. With more and more people becoming interested in blockchain gaming, we can expect to see even more growth in the NFT space.
Defi protocols will become more user-friendly
One of the main obstacles preventing mass adoption of DeFi is the fact that many protocols are still too complex for mainstream users. However, that is starting to change as more and more developers focus on making DeFi protocols more user-friendly.
For example, the popular decentralized exchange Uniswap recently launched a new interface that makes it easier for users to trade cryptocurrencies. This is a significant development, as it shows that DeFi protocols are becoming more accessible to the average person.
As DeFi protocols become more user-friendly, we can expect to see an influx of new users who will help drive the growth of the DeFi space.
Frequently asked questions
Is DeFi heating up?
Yes, the DeFi space is heating up as more and more people become interested in decentralized finance. This is causing a lot of innovation and growth in the space, as we can see from the trends that are happening.
Is now a good time to invest in DeFi?
There is no one-size-fits-all answer to this question, as it depends on your personal investment strategy. However, the DeFi space is currently experiencing a lot of growth, so it may be a good time to invest if you are comfortable with the risks involved.
What are the current DeFi predictions?
Some current DeFi predictions include more traditional financial institutions entering the space, the rise of blockchain gaming, and more user-friendly DeFi protocols. These predictions are based on the current trends that we are seeing in the DeFi space.