Suche
DeFi on the decline: Only 1.5% of users generate real returns!
A recent report shows that DeFi protocols are only attractive to 1.5% of users while centralized exchanges are booming.
DeFi on the decline: Only 1.5% of users generate real returns!
The cryptocurrency space is currently experiencing a boom in returns, but the DeFi segment appears to be lagging behind. According to a recent report from MoreMarkets, only 1.5% of users earn returns through DeFi protocols. This contrasts sharply with estimates that suggest that between 20 and 36 million users are actively generating income through centralized exchanges (CEXs). While DeFi protocols like Lido and Aave are only used by 500,000 to 700,000 active users to generate income, this shows a clear advantage of centralized solutions.
The majority of users have specific expectations for staking, with at least 6% return cited as a requirement to consider participating. However, security and liquidity concerns are key barriers to retail adoption of DeFi offerings. 43% of users express concerns about the possible insolvency of platforms, while 42% perceive security breaches as a risk. Such fears have been heightened by past bankruptcies of well-known platforms such as Celsius and BlockFi, which 15% of users have heard of.
User concerns and understanding
Another important point is the lack of understanding among users about crypto returns. 28% of respondents do not understand how these yields work, further hindering DeFi adoption. Furthermore, only 21% of users show interest in auto-compounding or high-yield mechanisms. This suggests that simplicity in staking rewards is crucial to attracting more users to DeFi protocols.
The survey results reflect a widespread sense of uncertainty and show that many users view returns below 6% as insufficient to justify the potential risk. These challenges explain why DeFi continues to lag behind centralized platforms.
Overall, user regulations and concerns appear to be heavily influencing how and where returns are generated from crypto assets. The data from crypto.news' report highlights the need to better understand and respond to user needs to fuel the growth of DeFi and increase adoption among the general public.