In light of the popularity of DeFi and the growth of DEXes on Ethereum, users and developers were limited by high gas costs and slow transactions. Users are expecting DEXes and DeFi to have a centralized exchange experience but DEX’s security.
The blockchain technology is the bottleneck from driving the global mass adoption of DeFi. In order for DeFi to grow to a billion users, blockchain needs to solve these problems, and improve issues of centralization, capital inefficiency, and liquidity segmentation.
How valuable would that be?
Let’s just do some really rough calculations.
- Well, daily trading volume is around $10T. If 0.25bp fees reduced volume by 75% and otherwise 20% of the volume moved to a decentralized venue, the resulting volume would be about $500B/day.That would result in $3B of annual revenue and a valuation likely around $100B.
- In social media, Say that gas costs of $0.00002, Twitter:Daily cost of $10k, Facebook:Daily cost of $100k
- How about credit cards? VISA handles ~2k-50k TPS; scalable blockchains can handle this and has a $500b valuation. So we could have $1T valuation of credit card companies on-chain.
