Defi Sees Institutional Demand in Q2 2021 — Chainalysis Report

An unreleased report by Chainanalysis has revealed a change in the trend of players dominating the burgeoning DeFi sector. Before now, it used to be the domain for retailers, but institutional investors appear to have taken over in the second quarter of 2021.

In the report titled “Global DeFi Adoption Index,” the blockchain intelligence firm stated 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.”

This has proven the claims that the crypto niche has recently been attracting big-money players, as it continues to see the influx of banks and several financial-related institutions trooping in with funds. This indicates a shift of interest and an attempt to tap from the potential of the evolving DeFi sector. 

In the preview of the report, Chainanalysis revealed the difference between DeFi and the entire crypto market. The emerging market shows massive adoption for the flagship crypto-asset Bitcoin, while DeFi sees more institutional investors in major economies.

Away from the report, it appears that the United States Security and Exchange Commission has its increased focus on the sector. The agency has revealed its intent to regulate the space and better protect investors. 

Just recently, we reported that the financial regulator begun investigation on Uniswap, a leading Defi exchange.

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