DeFI Market
- According to Chainalysis's latest report into global cryptocurrency adoption, North Americans sent $276 million to decentralized finance (DeFi) platforms between July 2020 and June 2021. DeFi transactions made up 37% of North America's transaction volume, and the U.S. topped the chart for global DeFi adoption.
- The Chainalysis report showed that large transactions -- ones over $10 million -- made up 60% of all DeFi transactions in the second quarter of 2021. It says that DeFi is "disproportionately popular" among bigger investors, although some retail investors in the U.S. are also getting in on the DeFi game.
How To Make Money In DeFi
- Lend/Earn: Essentially, crypto investors can deposit assets on the platform and earn higher rates of interest than they would with a traditional savings account. The way the platform generates those high returns is by lending the assets out and paying investors part of the interest.
- Decentralized exchanges, or DEXs, are another popular DeFi application. Unlike a centralized exchange, where the platform sits in the middle of the trade to make it happen, DEXs let people trade directly with each other.
- Liquidity pools are another way to earn passive income on your assets. It's a little bit like having a storeroom in the back of a supermarket, ready to meet customer demand.