As many subsectors in the crypto market continue to take heavy hits from recent volatility, some market players see decentralized finance (DeFi) as resilient and gaining interest despite the negative macroeconomic environment.
Centralized financial institutions are similar to traditional firms, with people running their operations and managing their funds. In contrast, DeFi protocols use technology — not people — to execute services through things like smart contracts.
“We see significant institutional interest in the sector,” Robert Alcorn, CEO and co-founder of decentralized capital markets ecosystem Clearpool, said to TechCrunch. “This was apparent before the recent bout of volatility and continues despite it.”
The general consensus among both crypto-native and traditional institutions is that DeFi has the potential to solve the problems that led to the current market turmoil, Alcorn said.
