2021 was a banner year for the DeFi industry as the world continued to catch on to its transformative attributes. DEX trading volume jumped by 8,000% in Q1 2021 alone compared to the same period in 2020.
Statistics by the end of the year were arguably even more impressive as the industry’s Total Value Locked (TVL) rested at about $243.88 billion by the latter end of December.
2021’s DeFI TVL only totaled about $18.29 billion.
Now in January 2022, some are projecting an even bigger year for decentralized finance as they reflect on 2021’s immense growth. Maple Finance co-founder Sidney Powell noted at the start of January how “DeFi will hit the mainstream in 2022, knowledge will compound, institutional sentiment will continue shifting in favour of crypto…”
DeFi optimism means many within the industry are working hard to revolutionize finance and propel web3 technologies forward.
Curious about what projects might make the biggest headlines in 2022 as the DeFi industry continues to mature? Keep reading for an overview of four platforms to keep your eyes on.
ClubRare
NFTs enjoyed spectacular growth last year. Statistics revealed the global NFT market reached $22 billion in 2021. While NFTs have long only been within the digital world, platforms like ClubRare are starting to grab attention by bringing them to the real world.
ClubRare is the world’s first NFT platform connecting physical items to the metaverse. Users can trade, buy, and sell limited and luxury goods like watches, art, and jewelry with real-world value being expressed as NFTs. According to ClubRare, each mini metaverses will be customized to match the identity of the owner.
ClubRare stands apart as a physical goods NFT marketplace is an entirely new concept than a virtual-only platform. But as the prices of many luxury assets only continue to rise, ClubRare could make headlines in 2022 for its unique angle.
Polkadot
Polkadot is a blockchain protocol working to support parachains created by various developers to provide interoperability and scalability.
Developed by former Ethereum executives Gavin Wood and Jutta Sreiner, Polkadot’s ability to support multiple chains results in forkless upgrades to the platform and unique parachain specialization abilities.
Polkadot is already immensely popular among many developers due to shared security and a vibrant ecosystem. More than 400 projects were building on Polkadot by March 2021.
Polkadot’s wide range of developer tools leads many to believe building will only get easier and more robust as time goes on – giving the project strong growth prospects for 2022 and beyond.
Aave
Aave is a decentralized lending system allowing users to borrow and earn interest without a middleman. Software allows for the creation of lending pools where borrowers must post collateral and can only borrow up to its value. Aave, originally named ETHLend, raised $16.2 million with its 2017 ICO.
Aave has already been climbing quickly in the first few weeks of 2022 due to excitement on social media and interest in upcoming updates to Aave’s blockchain. In mid-January, The Coin Bureau YouTube channel even speculated the “fair valuation” of the coin could be $1,000 in mid-January 2022. Aave was at around $170 as of January 21st.
Aave’s many pros, like large lending pools, stable interest rates, and the offering of flash loans has led many to speculate the project could continue to grow by leaps and bounds in 2022.
Centrifuge
The Centrifuge team is working to bring assets like royalties, real estate, and invoices to the world of DeFi, where borrowers can finance assets without a third-party. Notably, Centrifuge won the 9th parachian auction on Kusama and intends to utilize the infrastructure to finance assets on Centrifuge Chain.
Centrifuge’s goals to make it easier for investors to bring assets into the blockchain is intriguing, as it could potentially serve as a well-used on-ramp for legacy businesses and traditional investors interested in engaging with the world of DeFi and blockchain technology.
Overall, 2022 only looks to be another year of massive growth for DeFi as more people understand the many inefficiencies of the traditional financial system. As decentralized applications continue to grow in scope, DeFi-focused platforms should only continue to become much more accessible to people across the globe.
