42% of participants in the annual ForkLog survey "Bitcoin and other cryptocurrencies in our lives" invested in the decentralized finance sector (DeFi). Another 25.5% of respondents plan to do this.
Cryptocurrency investment companies have shown huge growth. 34.5% invested in DeFi tokens, 14% are engaged in profitable farming and almost 8% invested in companies engaged in development in the sector.
In 2020, 25% of respondents announced long term crypto investment, and more than half noted that they are not planning to get fiat from crypto. Also, they mentioned that they do not know enough about the technology or do not trust such projects.
PancakeSwap became the most popular service in this sector in 2021. It is used by 26% of respondents. A decentralized exchange has a unique set of functions to eliminate certain problems in the crypto industry. It provides transaction speed and minimal transaction fees.
In addition, the interface is user-friendly, and there are many ways to make a profit on the network. Considering all these features and advantages, it is easy to conclude that the exchange has a bright future.
Recall that the co-founder of the Chainlink cryptocurrency project, Sergey Nazarov, said that in 2022 the DeFi space will continue to grow due to the appearance of traditional banks in it.
Another contribution of PancakeSwap concerns centralization, which has become a serious problem in the crypto market. The DeFi revolution started on the Ethereum blockchain, which is why 90% of the tokens on the market are based on ERC-20.
Although, when the ICO hype began in 2017, everything changed before the advent of decentralized finance. When a new participant launched the Ethereum blockchain, the network recorded another increase in the number of its users and supporters.
But all these revolutions and newcomers seem to have made the market attractive and profitable; some significant problems have arisen that permeates the existence and functioning of the crypto market. As soon as a newcomer joins the community, he/she will notice that everything is not as it seems from the outside.
For example, Ethereum's scalability issues have not been fully resolved. The network is still using the proof-of-work concept, and that's why problems continue to arise. For example, transaction delays are a constant problem for those who use the network.
In addition, increased transaction fees discourage many investors from using the network. Whenever the network becomes congested, these two issues become a problem for users.
The reason for the increase in transaction fees in Ethereum is that the network uses GAS as an incentive for miners. With GAS, network nodes execute Ethereum virtual machines faster.
However, due to the widespread adoption of blockchain by several projects, the network is often overloaded, and transaction fees continue to grow. In 2021, GAS will cost $20, and it now takes 5 minutes instead of seconds to complete transactions on Ethereum.