Currently, it\u2019s not easy to determine how the current trend will affect the broader market. But many crypto companies may migrate to the DeFi sector considering its growing trend and benefits. <\/span><\/p>\nFeatured image from Pixabay and chart from Tradingview.com<\/p>\n","protected":false},"excerpt":{"rendered":"
In the wake of significant collapses in centralized finance (CeFi) platforms, the crypto industry is witnessing a significant shift in funding from CeFi to decentralized finance (DeFi) platforms, according to a recent report by CoinGecko. The report highlights that investors are increasingly looking towards DeFi platforms due to their transparency, security, and efficiency compared to CeFi platforms. Related Reading: Bitcoin Price Turns Red Below $23K, What Could Trigger A Sharp Decline The Crypto Funding Shift The CoinGecko report revealed that the risks in the CeFi sector had increased the number of investors turning to DeFi platforms, which offer several benefits. These benefits include increased transparency, where transactions are recorded on a public blockchain, allowing investors to see how the platforms use their funds. Moreover, DeFi platforms are more secure since they use smart contracts to execute transactions rather than relying on centralized intermediaries. Also, the efficiency of DeFi platforms contributes to its growing number of investors, as they allow them to have more control over their funds. This enables them to trade assets instantly without going through a centralized exchange, resulting in lower fees and faster transaction times. The CoinGecko report concludes that the shift toward DeFi funding is likely to continue in the coming months as investors increasingly prioritize security, transparency, and efficiency over centralized control. DeFi And CeFi Funding Activities There were several DeFi and CeFi funding activities from various crypto organizations to recall in 2022. But according to the report from CoinGecko, Luna Foundation Guard (LFG) made the most significant DeFi funding in this period, a $1 billion in sales of the LUNA coin in February 2022. This remarkable event preceded the fall of TerraClassicUSD and Terra Luna Classic three months later. Other contributors to the DeFi funding were Lido Finance, an Ethereum staking protocol, and the Ethereum-native DEX (decentralized exchange) Uniswap. The report shows that both companies raised $94 million and $164 million, respectively. Regarding CeFi funding, the report noted that FTX U.S. and FTX received the highest portion after raising about $800 million in January. This figure amounts to 18.6% of the total CeFi funding recorded in 2022. However, after 10 months of regular operations, the crypto firm collapsed and filed for bankruptcy. Related Reading: Bitcoin Price Crashes Below $22,000, These Are The Reasons Some other areas included in the investment include blockchain technology and blockchain infrastructure companies. Both sectors raised about $2.7 billion and $2.8 billion, respectively, and this trend has remained over the last few years. Currently, it\u2019s not easy to determine how the current trend will affect the broader market. But many crypto companies may migrate to the DeFi sector considering its growing trend and benefits. Featured image from Pixabay and chart from Tradingview.com<\/p>\n","protected":false},"author":584,"featured_media":522011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[84230,6664,54512,1946,78803,71704],"class_list":["post-522004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cefi","tag-crypto","tag-defi","tag-ethereum","tag-ethusdt","tag-ftx"],"acf":[],"yoast_head":"\n
Investors Shifted Funding From CeFi To DeFi Following Major Crashes<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n