Chainalysis, in its soon-to-be-released “Global DeFi Adoption Index” report, noted that “large institutional transactions, meaning those above $10 million in USD, accounted for over 60% of DeFi transactions in Q2 2021, compared to under 50% for all cryptocurrency transactions.”
Banks and financial institutions are beginning to allocate huge amounts of funds to other crypto products other than Bitcoin. This is an indication that investors are diversifying their portfolio to include some products from the DeFi market.
The Chainalysis preview report also highlighted a broadening division in the adoption metrics for DeFi and the general crypto market. While emerging markets continue to show greater adoption for legacy cryptos like Bitcoin (BTC), the growth of the DeFi sector is fuelled by more developed economies.
Regulators are increasingly focusing on the DeFi market. A few days ago, the US SEC initiated a probe into the developers behind Uniswap Labs. SEC Chair Gary Gensler also hinted at more stringent crypto policies back early in August.
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Source: Cryptocurrency - investing.com
