Decentralized finance has become one of the hot topics in crypto this year. Although activity and volume in the DeFi space still lag behind its popularity, this is starting to change as novel protocols become available. In fact, according to a recent report by Consensys, the amount of Ether (ETH) locked and active users on DeFi platforms has soared after being “fairly stagnant” during the rest of the year due to Compound’s release.
DeFi tokens have also been the topic of much discussion, as they have outperformed Bitcoin in the price charts week after week. In fact, Compound’s COMP token rose 233% in its first week of trading, and Aave’s LEND token has surged 1,000% in the last three months. As such, an obvious comparison between decentralized finance and centralized finance can emerge. Centralized systems have their advantages and disadvantages, and it is likely that, even if DeFi takes off, both types of financial products and services will always be available to the masses.