News29 October 2021

The US Leads in Global Adoption of Decentralized Finance

Decentralized Finance adoption is the highest in the United States of America, according to Chainalysis. Following closely are other countries with emerging economies. The ratings focused on metrics like the on-chain number of deposits, on-chain DeFi value received and on-chain 'retail' DeFi value received. In the overall index ranking, the top 10 list was headed by the US, followed by Vietnam, Thailand, China, UK, India, Netherlands, Canada, Ukraine, and Poland. North America and Eurasia topped the list.

While there was substantial growth in DeFi protocol usage in North America and Western Europe between 2019 and 2020, there has been massive adoption in the same in Southeastern Asia in 2021.

Unlike Bitcoin, whose primary adoption reason is speculative, DeFi adoption hinges on its usage for saving, borrowing and lending. It eliminates banking go-betweens while providing cheaper funding, faster.

Decentralized finance is unique because it comes with the primary benefit of the blockchain - transparency. Compared to banking, decentralized finance comes without all the expenses, barriers, and slow approval processes.

The Chainalysis study also showed that institutional investors and cryptocurrency whales are also venturing into decentralized finance. Transactions worth more than $10 million were observed in more than 60 percent of all DeFi activities in the second quarter of 2021.

Kibet Elikana
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