The founder of Chainlink issued a strong prediction: DeFi TVL will break trillion US dollars next year

According to a foreign media “Decrypt” report, Sergey Nazarov, the founder of the oracle project Chainlink, said at this year’s Ethereal Summit: “The value locked in DeFi will be one more zero next year. So if Now it’s 70 billion U.S. dollars, it will reach 700 billion U.S. dollars, maybe 1 trillion U.S. dollars-it will become hard to ignore.”

According to DeFi Pulse data, TVL currently exceeds US$80.1 billion, a new high. Since the beginning of this month, US$68.4 billion has grown by 17.1%. Compared with US$96 million in the same period last year, it has increased by more than 8 times.

And Nazarov’s optimistic attitude towards the prospects of DeFi is not surprising, because Chainlink’s oracle itself is an important tool in this field, which can link external and off-chain data to the blockchain.

According to statistics from CoinMarketCap, the native token LINK of the Chainlink network was quoted at US$49 before the deadline, with a 7-day increase of 27.1%, ranking the 12th largest cryptocurrency and the 2nd largest DeFi token with a market value of US$20.6 billion.

The DeFi token with the largest market value is the mainstream decentralized exchange Uniswap (UNI), with a market value of 21 billion U.S. dollars. It was reported to be 40 U.S. dollars before the deadline, a 7.19% drop in seven days.

The DeFi boom has been growing strongly since last year and has attracted the attention of the Bank of Japan (BOJ), which released a DeFi research report on April 28.

According to a foreign media “CryptoNews” reported yesterday, the document was released by the Bank of Japan’s Payment and Settlement System Department, which is responsible for formulating the development of the central bank’s payment policy. The report covers topics such as DeFi’s liquidity mining, the rise of autonomous financial services, and the pursuit of governance.

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Regarding the issue of DeFi industry regulatory policy, BOJ said that because of its innate nature, it is difficult to ensure that the central bank, financial regulatory agencies, and government regulations can be effectively implemented. The report also pointed out the potential advantages and disadvantages of DeFi, including:

Advantages: increase competition within the financial industry; create new financial services; improve the accessibility of financial goods and services

Disadvantages: Lack of supervision, problems may occur in the case of leverage agreements; smart contract loopholes; lack of centralized review institutions, complicated user protection

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.