DeFi is a movement still in its infancy but ripe with potential to massively disrupt the traditional financial sector.

This is according to new research by Copper, delving into the advancement, current status, and growth potential of DeFi.

In February 2020, the value of the tokens underpinning the DeFi protocols surpassed $1.2bn. For the Ethereum ecosystem, which DeFi is intrinsically linked to given that the vast majority of projects are powered by the Ethereum network, this represented a significant boon – drastically increasing its value proposition.

Prominent applications like lending protocol Compound have also seen well over $1bn of flows year-to-date, and Copper’s research also found that dYdx, which started as a lending platform and expanded into a fully functional decentralized leverage exchange, has seen inflows double of that.

Finally, the report looks at how the meteoric rise of DeFi is permeating the traditional finance sector, specifically the central banks' progress with the development of their digital currencies.

You can download the full report here: Copper No4