OAX Foundation: 3 predictions for decentralized finance in 2020

Published by OAX Foundation, created to explore the future of decentralized exchanges and address their four main shortcomings: speed, scalability, interoperability and trust

OAX Foundation: 3 predictions for decentralized finance in 2020

One of the key hurdles in blockchain technology is mass adoption, and with the growth of DeFi, it seems that mass adoption for this use case is finally within the horizons.

As interest in DeFi is increasing, many have been weighing in on the trend and where the industry will bring DeFi in 2020. Here’s a summary of the top 3 predictions for Decentralized Finance in 2020:

1. The total value locked in DeFi will continue to raise and has already surpassed the $800 million mark

There was a massive upswing for DeFi in 2019, and industry experts are predicting 2020 to be a great year for the sector. The total USD value locked in DeFi has surpassed $800 million and has already grown over 22% in 2020 thus far.

2. Significant competition for Ethereum will arise

There may be a growth in more cross-chain DeFi projects, with at least two major public chains other than Ethereum that will establish a noticeable DeFi ecosystem. While Ethereum has definitely established itself as the most promising platform for DeFi, this opens the opportunity for other competitors to join in and tap into the potential of the growing space.

3. Interoperability has the potential to arrive in 2020

2020 is set to witness significant progress in interoperability, and the adoption of DEXes with asset swaps between more than one blockchain. The progress and launch of projects such as Polkadot are also set to spur progress in tackling interoperability.

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