In recent months, the decentralized financial or DeFi crypto trend has been evolving. On average, DeFi crypto assets rose by 42.9%, 56%, 60.5% and 168.4% from May, June, July and August, respectively – huge monthly gains for every asset group.
A founder of the portal Messari.io, Ryan Selkis, talks on Twitter about what future holds for the DeFi ecosystem. He raises the question of whether DeFi will repeat the fate of the ICO of 2017 when many investors lost their savings in the pursuit of big profits.
The DeFi bubble will pop sooner than people expect.We're nearing the apex of ponzi economics, rug pulls, and "yield" hopping, and ETH fees are going to eat too heavily into non-whale profits. Ryan Selkis @twobitidiot via Twitter
He believes that DeFi is a pool of capital that is promoted at the expense of other participants in the ecosystem. When the founders of this pyramid decide to withdraw, many "investors" will be left out.
ICOs boomed for a while because everyone (laughably) thought there would be a coordinating utility token for every industry.DeFi is just one big pool of capital sloshing around a small group of insiders and mercenaries who will soon run out of victims to fleece. Ryan Selkis @twobitidiot via Twitter
Last week, Uniswap's open trade exceeded Coinbase Pro in terms of trading volume for the first time in history. Uniswap reported $ 472 million. On the other hand, Coinbase Pro earned just $ 416 million. This could become a new trend if The Ethereum DeFi field continues to expand.
Remember, though, that the Ethereum has already been heavily limited. The friction caused by DeFi's accelerated growth contributed to a surge in transaction costs.