S&P Global 2022 Global Financial Outlook: DeFi Will Not Replace Traditional Finance

Financial analyst S&P Globol (hereafter Standard & Poor's) released its “Global Credit Outlook 2022” on December 1 and said DeFi's role will continue to support, not change, existing finances for the world. 'next year. The incomes of top earners will increase over the next few years.

DeFi will not quickly change existing budgets, controls or interruptions in the years to come.

S&P noted in its statement that DeFi is still in its infancy and that there is no significant overlap between its customers and traditional finance. The DeFi app is now available for cryptocurrency purchase, exchange, loan, or insurance. , which makes it difficult to threaten the traditional economy in 2022.

S&P also said that DeFi's strength lies in the possibility of high costs (loans, high funding, etc.). Existing funds will have a direct impact on the organization's financial choices (however, S&P said this will take years).

S&P believes that the global expansion of DeFi policy in 2022 will allow more financial industry participants to join DeFi. As a management controversy, DeFi could be revamped and expanded in 2022. Compliance compliance is a prerequisite for many existing / business organizations.

Standard & Poor's notes that the existing DeFi has a number of features that may support additional interference management.

* Liquidity fluctuations in the cryptocurrency market and existing financial markets

* Negative risk (many jobs can turn out to be stolen)

* DeFi causes uncertainty in the financial market.

* The decentralized monetary system can affect the strength of monetary policy (which cannot be effectively addressed in a financial crisis)

* Price fluctuations and lack of oversight have led to increased risk for investors and businesses.

While not the only one to adhere to the DeFi distinction, S&P noted that financial systems must always evolve and invest constantly in order to be competitive.

Galaxy Digital CEO: 2022 will be driven by DeFi.

As previously reported, billionaire and Galaxy Digital CEO Mike Novogratz is more optimistic about DeFi improvements next year, saying that while investors have yet to express their love for DeFi in 2021, it is expects DeFi to take the lead in 2022., is also expected to address concerns about DeFi's inability to obtain Personal Information (KYC).

US registered venture capital advisor Ritholtz Wealth Management and ETF issuer Wisdom Tree have teamed up to develop a new crypto index, RWM Wisdom Tree, and introduce key currencies such as DeFi and Metaverse as collateral. To show.

According to data from DefiLlama, as of this year, the total amount of DeFi shutdowns has reached $ 248 billion before the deadline. Many new features such as Warring States period have also been developed, and the top 5 DeFi protocols at current close price is as follows.

Curve ($ 23.01 nphom)

Convex ($ 19.08 nphom)

Developer ($ 18.08 billion)

United Arab Emirates ($ 14.51 billion)

WBTC ($ 12.42 billion).