Chainlink Founder Predicts Widespread DeFi Adoption by 2030

DeFi industry has reached 30% of its journey towards widespread adoption, says Chainlink co-founder.

The decentralized finance (DeFi) industry has reached 30% of its journey towards widespread adoption, according to Chainlink co-founder Sergey Nazarov in an interview with analyst Michaël van de Poppe.

He stated that platforms for direct financial transactions between users could achieve 50% global adoption once clearer regulations are established. The United States plays a crucial role in this, the expert believes.

“Many governments watch what the US does because they want to be compatible with the country’s financial system,” Nazarov said.

The figure will rise to 70% when there is a clear and effective path for institutional users to invest capital and client funds in DeFi.

A turning point in the financial landscape will occur when the sector’s capitalization becomes comparable to traditional markets. This will lay the groundwork for a “meaningful comparison” between the two systems, Nazarov emphasized.

“I believe a full transition to DeFi will be possible when financial reports include pie charts clearly showing what portion of client funds and institutional capital is placed in the decentralized ecosystem versus the traditional financial system,” he added.

According to his forecast, such charts will emerge by 2030. They will resemble those showing the percentage of the treasury market relative to stablecoins.

“As the percentage grows, I think people will start saying, ‘Oh, good, wow, this percentage of all institutional capital is now in this blockchain-based form.’ That’s when the shift from niche tool to mainstream will happen,” Nazarov concluded.

At the time of writing, the total value locked in decentralized protocols is estimated at $118.1 billion. At its peak in November 2021, the figure was $174 billion.

Back in November, Ethereum co-founder Vitalik Buterin stated that the DeFi sector had reached a level of maturity and security sufficient for use “as a primary bank account.”

He noted that decentralized finance is becoming a “viable form of savings.”

However, decentralized finance remains the most vulnerable element of the cryptocurrency ecosystem, as evidenced by ongoing hacks of DeFi projects. One of the most significant recent incidents was the attack on the Balancer protocol, during which attackers stole $128 million.