DeFi Platforms Drive Crypto Mainstreaming
Scroll DownThe long-awaited influx of institutional investors to the cryptocurrency markets is finally taking place, and we have decentralized finance technology to thank for this positive trend. Most individuals looking to become long-term investors in cryptocurrencies will look for an institutional broker, a broker-dealer, or any other "systems-based" financial product company that has an established history of dealing with cryptocurrencies, and this is what decentralized technology projects such as Solana are bringing to the table.
Solana token holders have been enjoying the spoils of a nice market rally, and this is not just a matter of SOL riding the coattails of Bitcoin. This platform has become the go-to solution for institutional investors who wish to dip their toes into the cryptocurrency trading pool, and this is explains why SOL has rallied by nearly 200% since the final week of March. Thanks to the speedy and reasonably priced transactions offered by Solana, launching a new blockchain project on this platform has become trendy; when we think about all Solana transactions being ultimately settled with SOL tokens, it is clear to see why this digital currency is on the rise.
DeFi is one of the best things the digital currency world has experienced in recent years. We used to think that established blockchain networks such as Bitcoin and Ethereum would have been able to handle major surges in trading volumes, but we were proven wrong in this regard a few years ago. When you look at the Ethereum network supporting dozens of digital currency tokens, it is easy to understand why the network has become slow while the cost of clearing transactions has increased considerably.
If you are a cryptocurrency entrepreneur looking to launch your new project quickly, DeFi is your best friend. Decentralized exchange markets allow investors to make funds available to others by exchanging their cryptocurrencies for more established tokens. As long as these DeFi platforms continue to provide this functionality, institutional investors will not have to worry about the dubious scaling of the Ethereum, which is still the preferred blockchain for business developers interested in minting new digital currencies.
Comments