Decentralized finance has seen impressive growth throughout 2020. To put this into perspective, a new report from Cointelegraph Consulting shows that the total value locked in DeFi jumped past $6 billion in August while in June, the TVL in DeFi was just over $1 billion, and ultimately stands at $9.4 billion at the time of writing.
While impressive, the DeFi space is still in its infancy, and many hurdles must be overcome before it enters the mainstream crypto market. Many of the challenges currently faced by the DeFi sector revolve around the rise of questionable projects and issues resulting from the Ethereum blockchain network. To date, the DeFi industry is dominated by projects built on Ethereum. While these decentralized applications may be more compatible with exchanges, wallets and stable coins, high gas fees and scalability challenges are hampering growth.
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