Can DeFi Replace Traditional Finance?


“DeFi eats JPMorgan raw,” said Messari, one of the leading crypto money research institutions. The report, which has very bullish comments for decentralized finance protocols, highlighted the important features of DeFi that can overthrow traditional finance.

As the decentralized finance (DeFi) industry grows steadily, the total value locked in DeFi platforms has exceeded the $ 30 billion milestone. DeFi tokens have been a major player in the ongoing altcoin rally. With more projects and services developed in decentralized finance that can rival traditional finance, can DeFi really replace banks?

Growing in 2020, the DeFi sector and the cryptocurrencies it brought with it performed better than many major coins. In the face of this momentum in the cryptocurrency industry, the idea that DeFi could pose a threat to traditional finance began to gain strength. The report published by the crypto money research platform Messari also supports this idea.

DeFi has the potential to eat JPMorgan raw

According to the report named “DeFi Will Eat JPMorgan” published by Messari, the DeFi sector has a significant potential to rival traditional financial systems. According to the same report, researchers are very optimistic that DeFi protocols will be much larger than existing financial institutions over the 15-20 year period. According to Messari, the features that make DeFi better than CeFi; It consists of factors such as sphericity, accessibility, ease of value transfer and efficiency.

DeFi creates a tremendous combination for a devastating technology

Messari believes DeFi protocols are more successful in global transactions than legacy financial institutions like JPMorgan. Free from factors such as boundaries and regulatory constraints, DeFi space provides a more efficient picture of scaling. DeFi is defined by Messari as easy to access and almost impossible to destroy.

“DeFi protocols do not have any special area; They can be found everywhere, but they are not bound to any physical location. This is an incredible combination to create a staggering technology. ”

Messari said that the DeFi industry is at an early stage; It underlines that it is in the stage of development and adoption. According to Messari researchers, although it is too early to say what the future will bring for DeFi, it is possible for the industry to strengthen its potential with the expansion of various financial services and increased interoperability.


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