It’s hard to believe that just 12 months ago we wrote about ~$15bn deposited into DeFi. As excited as we were about the its product-market fit, the final numbers dwarfed all our expectations:
Almost $300bn! And yet the room for growth is enormous as only 4mn wallets have interacted with DeFi so far:
Stablecoins (USD-pegged) - the area of focus of our team - didn’t disappoint either:
Digital consumption evolved from thesis into a substantial industry:
In the meantime, ETH became a ‘productive’ asset - i.e. its burn rate often exceeds its emission with obvious implication for its supply / demand:
And all of the above happened despite China banning the whole crypto industry and massive exodus of crypto miners (which conveniently found their home in the US):
As we are looking ahead into 2022, we couldn’t be more excited. Best wishes for the New Year and see you on the blockchain!
Author is the Managing Partner of Re7 Capital - a stablecoin centric DeFi fund.