DeFi, is universally known as Decentralized Finance, but it has received massive attention in the world of traditional assets such as government bonds, stocks, ETFs, etc. DeFi and Fintech are gradual evolutions in the world of cryptocurrency or digital money.
The money and digital investment sector thrived at the end of 2017 when the world saw massive price rallies for investors and made significant profits, which would otherwise take decades or people to acquire.
That’s when Bitcoin, Ethereum, and XRP hit very exponential highs, but the three cryptos to date didn’t have the same potential to regain the same momentum to trade above $ 20,000.
However, the current momentum and the crypto market requires a new injection of cash from institutional investors, which are currently lacking. DeFi, along with crypto as an investment option, is looking for new ways to invest money. Therefore, as cryptocurrency gained momentum in the investment field, DeFi took over as an innovation in DeFi assets.
When comparing traditional assets with DeFi assets, the latter includes cryptocurrencies namely, Bitcoin & Ethereum. However, the DeFi platform now includes many tokens apart from 1st and 2nd generation cryptos. DeFi definitely deserves a place in the portfolio.
For practical comparison, we analyze stock indices that market bonds against DeFi or, in general, Bitcoin and Ethereum; we see the major ones in almost all markets, including the crypto market.
But the latter holds full support while the former continues to fall without good support. Undoubtedly, the former gained some lost momentum, but we cannot ignore the intermittent collision that followed.
In addition, if we compare the figures in terms of YTD growth of this index, the S&P 500 has recorded a growth. The numbers clearly show cryptocurrency growth has always been at the top.
In addition, Bitcoin is often compared to Gold, and the latter is a better investment value among traditional investment assets.
Likewise with DeFi, many analyzes say DeFi will be the future of digital investment in the near future because the world is facing the latest problem, the Corona Virus Pandemic.
At present, DeFi is not yet an attractive area for potential investors, but in the coming months, when traditional markets face resistance such as the ongoing Pandemic, Fintech and DeFi will not take the time to step up and make their breakthroughs.