As of December 2021, the Total Value Locked (TLV) has grown to $243.84b and it continues to rise.
In this short article, we’ve picked out our top 3 DeFi trends to look out for in 2022 and beyond. As expected in this ever-changing landscape, there will be more new, exciting and interesting things to come in the industry but these are the 3 that we believe right now are the most important trends to follow.
1. DeFi hopes to monetize blockchain gaming
The gaming industry has been consistently growing over the past few years. According to the latest statistics, there are approximately 3.24 billion video gamers in the world. That’s nearly half of the entire global population!
Developers have started to monetize the blockchain gaming industry. Rather than running through a central server (such as with FIFA 22), these games are hosted on the blockchain protocol. They work by allowing players to ‘mine’ during various stages and scenarios of a game.
Big gaming organizations such as Ubisoft have already been producing blockchain games and multiple titles are being released monthly.
DeFi protocols are needed to allow for aspects such as in-game transferability and a return on investment for holders of coins related to these games.
2. Governance Tokens will gain more importance
You may have noticed when researching certain DeFi products and platforms that they usually offer their own token. The token that they offer is known as a governance token. Unlike with standard cryptocurrencies, the primary purpose is to give holders voting rights with regard to an underlying DeFi protocol.
Allowing holders to vote on aspects such as future initiatives, 2021 has seen a big rise in the price of these tokens. The more a protocol increases its users, the higher the value. With the way this trend has grown already, it would be hard to argue against further growth in 2022.
3. Traditional financial products like insurance will enter and grow the DeFi space.
With the rise of DeFi in general and its derivative products, we should see a rise in more traditional financial products entering the space. One product to note for a rise in 2022 has to be insurance.
According to Google Trends, there has been a significant rise over the last 12 months for people searching for ‘DeFi Insurance’ with its peak in March of this year and an upward trend as we write this in October 2021.
This shows that regular internet users are certainly interested in this type of product. Although DeFi contracts are similar to the more traditional insurance, they epitomize the meaning of DeFi by matching users looking to increase their current income with those who are hoping to reduce the risk factor.
InsurAce.io protocol is already the second-largest protocol in DeFi insurance despite only launching our $INSUR token in February 2021 and a mainnet launch to the Ethereum network only 2 months later.
Covering 60+ protocols on 8+ chains, InsurAce.io has been built to empower the risk protection infrastructure for the DeFi community. Offering portfolio-based insurance products with pricing models up to 60% cheaper than other protocols. This 2022 trend is going to be instrumental in our own projected growth.
Do you agree?
These are the 3 trends that we predict will go to the moon in the DeFi world. We’d love to hear your thoughts though. Whether you want to tell us a trend we’re missing, whether you want to learn more about InsurAce.io or whether you want to hear what the DeFi community is saying RIGHT NOW — our Telegram group is open for all of these conversations.
About InsurAce.io
InsurAce.io is a decentralized multi-chain insurance protocol, to empower the risk protection infrastructure for the DeFi community. InsurAce.io offers portfolio-based insurance products with optimized pricing models to substantially lower the cost; launches insurance investment functions with flexible underwriting mining programs to create sustainable returns for the participants; and provides coverage for cross-chain DeFi projects to benefit the whole ecosystem.
At the time of writing, InsurAce.io has provided coverage to 87+ protocols, safeguarding over $170M DeFi assets on 12+ public chains.
InsurAce.io is backed by DeFiance Capital, Parafi Capital, Alameda Research, Hashkey group, Huobi DeFiLabs, Hashed, IOSG, Signum Capital, LongHash Ventures and a dozen of other top funds.
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