 ▲ DeFi (Decentralized Finance), Blockchain Infrastructure / ChatGPT-generated image |
The decentralized finance (DeFi) market is rapidly emerging as a mainstream force in the financial ecosystem, fueled by the full-scale entry of institutional investors and moving beyond being merely an alternative to centralized exchanges.
According to a February 28 report by crypto-focused media outlet The Street, Antonio Juliano, founder of the decentralized exchange dYdX, said that institutional investors are now beginning to prefer DeFi over centralized exchanges. Juliano noted that while institutions previously relied on the convenience of centralized systems, they are now turning to decentralized platforms to ensure transparent asset management and security. Following a سلسلة of collapses among centralized exchanges, the technological foundation that allows direct control of asset ownership has become the most important value for institutions.
Juliano identified transparency as the primary driver behind institutional investors’ shift to DeFi. While centralized exchanges do not fully disclose their internal operations, decentralized finance enables real-time verification of all transactions and collateral status through on-chain data. He explained that institutions now want clear visibility into where their assets are and how they are managed, adding that these transparency demands are creating synergy with dYdX’s high-performance trading environment. By building its own chain, dYdX has achieved faster speeds and lower fees compared to its previous Ethereum (ETH)-based infrastructure, enabling it to handle large institutional trading volumes.
DeFi’s influence in the global digital asset market continues to expand. Juliano analyzed that although DeFi still accounts for a relatively small share of total trading volume, its growth rate far surpasses that of centralized exchanges. Institutional investors require advanced technological capabilities to manage complex financial products, prompting dYdX to strengthen its infrastructure to process tens of thousands of orders per second. The inflow of institutional capital not only increases funds in the market but also enhances overall market stability and liquidity.
Changes in the regulatory environment for digital assets are also expected to favor DeFi. Juliano projected that once institutional frameworks such as the U.S. crypto market structure bill, the CLARITY Act, are finalized, more institutions will utilize decentralized platforms within a defined legal framework. As regulations become clearer, the monopolistic position of centralized exchanges is likely to weaken, increasing the likelihood that decentralized finance—offering both security and autonomy—will become the market standard. Juliano emphasized that the alignment of regulatory clarity and autonomy represents a major historical shift in finance.
dYdX plans to further solidify its market position by expanding tailored services for institutional investors. As self-custody of assets returns to the fundamental principles of finance, the role of decentralized exchanges is expected to grow significantly. Juliano concluded that the era of institution-led decentralized finance has officially begun and will elevate the overall maturity of the digital asset ecosystem.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*