DeFi Boom – The Beginning of Web3

Investment trends are an important factor when considering investment projects. The question that is always asked is:

• Where is the market going?
• What does the market need?

The fact that you research the crypto project you plan to invest in can meet the needs of the market and follow the trend of the market that is going, which is the key to a long-term investment strategy in addition to considering the team. team and capital.

The following article is an assessment of the direction of technology projects developed based on Blockchain – that is, moving to Web3.

DeFi’s Explosion

2020 is really a strong year for DeFi with impressive numbers:

• Total value locked in DeFi (Total Value Locked (TVL)) skyrocketed from just $600 million in January 2020 to over $26 billion.
• Outstanding loans increased 22 times from $150 million to nearly $4.5 billion.
• The monthly trading volume on DEX (Decentralized Exchange) is up to 30 billion dollars.
• Over 230 DeFi dapps, with new projects announced daily.
• The biggest projects in the crypto market also have a great development:
  • The Maker Project issues over $1.5 billion in the form of DAI (Maker’s stablecoin).
  • Compound has $5.8 billion in interest-bearing assets across nine markets.
  • Uniswap handles a transaction volume of up to $51.7 billion.

The strong investment in DeFi shows a strong interest in the decentralization and anonymity of this sector – two properties that characterize crypto, blockchain and Web3. That is why in the future we can see a strong shift of institutional investors through Web3 like what is happening for Bitcoin.

The Beginning of Web3: The Graph

Developers use The Graph to extract data from the blockchain and provide information to Web3 (Decentralized Internet) applications. As we move towards a decentralized web, an “indexing layer” like The Graph will be the mainstay of Web3, allowing applications to load quickly and providing a good user experience.

I would like to give a chart of service usage statistics hosted on The Graph in 2020 to demonstrate this boom.

Daily queries

Some interesting stats on the Graph:

• The volume of archived information queries will increase 100 times in 2020 (from 100 million queries in January 2020 to over 11 billion in January 2021 only).
• The number of Subgraphs (open API) on The Graph increased from ~1k Subgraphs in January to over 7k Subgraphs at the end of the year.

This significant growth has mainly come from DeFi, art and collectibles NFT, DAO, which shows huge potential for different industries to participate in the Web3 space.

Just talking about DEX arrays:

• DEX and AMM offering strategies, driven by Uniswap, Balancer and Curve, make up the majority of query volume in DeFi sectors.
• Followed by the derivatives segment – an array in which in 2021, you can witness a series of explosive projects from options, futures to synthesis assets.

Evaluate

Right now, we are at a crucial stage of blockchain, where tools and innovations are working in tandem.

We are at the stage of building the infrastructure to enhance the developer experience through layers in Web3 such as Oracle and indexing – tools that can save developers both time, money and effort for things like code to synchronize and index blockchain data. Instead, developers can easily build truly decentralized and serverless applications, thereby starting the boom of Web3 and DeFi with these tools.

Forecast

In fact, the shift from Web2 to Web3 has really begun. Most of what exists on the Internet today will be decentralized on Web3, and many new innovations will continue to accompany this revolutionary technology.

We can clearly see what is coming in 2021.

• “Art and collectibles” accounted for 14% of all subgraphs and 4% of query volume.
• The game will account for 8% of the total 8% of the total.
• “DAO” will make up 8% of the total 8% of the total.
• Ethereum is dominating (and will likely continue to do so).
• Developers are moving towards a multi-chain world.
• Layer 1 blockchains will gradually realize the need for an indexing layer. This will be especially important when data is spread across multiple blockchains and storage layers.

Epilogue

As you can see, society is starting to realize the importance of decentralization. 2021 will be a year where you will see more decentralized websites, services, tools, and applications than ever before.

You will see the gradual narrowing of centralized institutions.

However, the changes to the decentralization trend will not happen overnight and DeFi is just the first big step to be taken.

The Graph will play a huge role in the development of the internet and open the gates of Web3 for all developers and traders.

You can learn more through the original post here.