- Decentralized finance (DeFi) is estimated to be about 30% adopted globally, with potential for full adoption by 2030.
- Regulatory clarity and institutional participation are key to increasing DeFi adoption.
- The U.S. government’s stance on DeFi could influence international regulatory frameworks.
- DeFi lending protocols have grown significantly, with total value locked rising over 72% year-to-date to $127 billion.
Sergey Nazarov, co-founder of ChainLink, stated that decentralized finance (DeFi), a peer-to-peer financial system built on blockchain networks, is about 30% adopted worldwide. He projected that clearer regulations and institutional involvement will accelerate adoption, potentially reaching full global usage by 2030, as shared in his interview with Michael van de Poppe on YouTube.
Nazarov highlighted that progression toward 50% adoption depends on establishing clear legislation that explains DeFi’s reliability. He noted that regulatory and institutional hurdles must be addressed to realize this growth. In agreement, Michael Egorov, founder of Curve Finance, identified regulatory uncertainty, compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, liquidity challenges, transaction transparency, and security risks as significant barriers to adoption.
Regarding government roles, Nazarov expects the United States to lead regulatory clarity, influencing other countries to align given their financial ties to the U.S. financial system. This view reflects comments from Michael Selig, chief counsel for the crypto task force at the U.S. Securities and Exchange Commission, who emphasized focusing on onchain application features and intermediaries involved in DeFi.
Nazarov projected that DeFi could achieve 70% adoption once institutional investors gain a clear and efficient way to allocate capital. Full adoption would require DeFi’s capital base to be broadly comparable to traditional finance. He illustrated that by 2030, institutional capital allocation could be represented in charts comparing DeFi and traditional finance holdings, similar to existing comparisons between treasury markets and stablecoins. This shift would mark the move from early adopters to mainstream users.
In recent developments, DeFi lending protocols have experienced substantial growth. Data from Binance Research shows a rise of more than 72% year-to-date, increasing total value locked from $53 billion at the start of 2025 to over $127 billion in cumulative assets.
For further context, watch the full conversation between Sergey Nazarov and Michael van de Poppe here.
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