DeFi (decentralized finance) has been booming in the past few years, attracting the attention of countless investors. From the hype frenzy to the current mature development, the DeFi market has experienced many twists and turns, but its prospects are still fascinating. So, is the DeFi get-rich-quick market over, or has it just begun? Let’s dig into it.

 The rise of DeFi and the legend of getting rich

 Current status and challenges of the DeFi market

However, as the DeFi market becomes hot, it also comes with a series of problems and challenges. Hidden risks in safety, supervision, project quality and other aspects often cause investors to worry. The recent frequent black swan incidents of DeFi projects have plunged the market into chaos. The existence of these problems makes people wonder, has the legend of getting rich in the DeFi market come to an end?

 Development trends and prospects of DeFi

However, despite the many challenges faced by the DeFi market, its development potential cannot be underestimated. More and more traditional financial institutions are beginning to pay attention to and try to integrate into the DeFi field, injecting new vitality into it. The continuous innovation and improvement of technology has also laid a solid foundation for the future development of DeFi. From this perspective, the DeFi market may have just begun, and its legend of sudden wealth may have more exciting chapters waiting to be written.

 Empirical data support: Development trends of the DeFi market

According to the latest data, the total locked value (TVL) of the DeFi market continues to grow, and the number of users is also expanding. DeFi platforms represented by Ethereum have attracted a large amount of capital inflows, and various innovative projects have emerged one after another. At the same time, more and more capital and talents are pouring into the DeFi field, injecting more vitality and innovation into it. These data undoubtedly prove the potential and prospects of the DeFi market.

 Creative Insights: The Future Development Direction of DeFi

In the future, DeFi is expected to further integrate traditional finance, break down the barriers of the existing financial system, and achieve a more open and inclusive financial ecosystem. As blockchain technology continues to mature and become more popular, DeFi will provide financial services to more people and promote the globalization and digitalization of finance. Therefore, it can be said that the DeFi instant wealth market has not ended, but has ushered in a new starting point, showing a broader development space.

 Conclusion

To sum up, DeFi, as a revolutionary attempt in the financial field, has exciting development prospects. Although there are many challenges and risks in the market, as technology continues to advance and the market gradually matures, the DeFi rich market may only have just begun. While investors are exploring DeFi, they also need to remain rational and cautious, seize investment opportunities, and jointly witness the legend of getting rich in the new era of DeFi.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

This wave of DeFi came very suddenly and unexpectedly. Its tipping point was the launch of the COMP governance token on June 17. After the launch of COMP, the skyrocketing price quickly triggered a wave of currency issuance for projects in the entire DeFi circle, and these projects It also attracted investors’ enthusiasm.

In just over 2 months from June 17 to now, a number of miracles have been created in the DeFi field, the biggest of which is YFI. As of the time of writing, the price of YFI has reached US$25,277, which not only exceeds the current price of Bitcoin, but also exceeds the highest price in Bitcoin history. Even the price of its imitation YFII has reached US$3,738.

Under this vigorous trend, there is an obvious phenomenon in the industry that most old leeks have missed this round of market conditions, while new leeks have actively participated, and from time to time there are stories of overnight wealth.

Lao Jiucai almost universally has a pessimistic view of DeFi. For example, Li Xiaolai believes that the risks of DeFi are too high and something will happen sooner or later; while Bao Erye’s view is more pessimistic. He believes that “DeFi is impossible to survive because the entire scale of DeFi will not be too big, so there is no point in paying attention to DeFi.” ".

Because New Leek is at the forefront of this wave, its pursuit of DeFi is very enthusiastic. Of course, this pursuit is largely related to the wealth effect. This wealth effect has driven many newcomers to rush into this field, eager to realize the myth of getting rich here.

DeFi has developed to the present, how will it develop next? Will it continue to be brilliant or come to an abrupt end? Many people have great differences on this.

In my opinion, the most important thing to look at when an ecosystem can sustain its development is what is its driving force and how long can this driving force last?

I once listed several typical differences between DeFi and ICO in the article "What is the difference between the current hot DeFi and the ICO of the past" on August 13: For example, DeFi is a practical application, and DeFi brings benefits to participants. The actual income has not been achieved, which is very different from the 1CO financing stage that only stayed in the imagination stage.

This is an analysis based on the actual effects that DeFi has brought to us. If we look at DeFi itself, we will also find that its internal drive is fundamentally different from the previous ICO, and this difference, in my opinion, is the more critical driver of the current and next development of DeFi. force.

This is model innovation.

After 1CO entered the rapid development period in 2016, its model has hardly changed much in the subsequent development process----
It is to issue ERC-20 tokens on Ethereum, and then users send ETH to this token contract in exchange for project tokens. As for the future value of this token, it depends entirely on the project team’s propaganda and demonstration. Therefore, the value of the token is highly subjective to a large extent.

When the project side was unable to tell a more exciting story and began to deceive public investors in a pyramid scheme, this kind of gameplay naturally came to an end.

But today's DeFi is completely different - the project does not rely on storytelling. At the first moment of landing, users can experience whether the project can bring value and benefits to themselves through personal participation. Therefore, the biggest and most direct driving force for whether a project can become popular in the DeFi field is whether the project itself can bring effects to users in terms of incentive mechanism, user experience and revenue.

I attribute the incentive mechanism, user experience and revenue to the model of the project itself. Therefore, the model of the project itself is the most fundamental driving force of the DeFi project, which depends on a series of hard-core elements such as the technical content, interface design, and mechanism design of the project itself.

In the DeFi field, we will find that when friends recommend projects to each other, they often say: Have you used XXX? I recommend you try it, it is so easy to use; do you know XXX? Its XXX mining mode is quite interesting. I recommend you give it a try - these are all real objective feelings, not pie-in-the-sky and story-telling.

It is this direct driving force that has caused many DeFi projects to become Internet celebrities as soon as they are launched. Why? Because it brings real benefits to users in the first place.

It is precisely driven by this driving force that DeFi projects are constantly iterating, and new projects emerge one after another. Even if the new project is plagiarized, we will find ways to add a little innovation and a new way of playing on the basis of plagiarism. Isn’t this what we have been talking about as “mass innovation”?

In my opinion, this drive for innovation has not faded, but has become more intense. New projects appearing every day are gaining momentum not only in quantity but also in quality.

Therefore, in my opinion, the current DeFi is not only far from reaching the end, but in fact, I am afraid that this innovation has just begun.

With the continuous development of blockchain technology, DeFi, as one of its important applications, has set off a revolution in the financial field. With the help of smart contracts and decentralized platforms, DeFi provides users with faster and more convenient financial services, while also bringing more investment opportunities to investors. In the world of DeFi, everyone has the potential to become the next “rich legend.”