Will the Next Bull Market Repeat the Success of “DeFi Summer”? It Depends on Seamless Cross-Chain UX
Interoperability, enabling seamless transactions and communications across multiple blockchains, has long been a goal of crypto developers. Only with truly seamless interoperability is it possible to unlock the network effects of blockchain ecosystems, allowing liquidity and users to flow between connected apps and services as they do in Web2.
However, “solutions” often come at the risk of introducing yet more friction, making them offputting to all but the most hardcore crypto advocates. Could seamless cross-chain activity via providers like RocketX be the key to generating the network effects needed to recreate 2020’s “DeFi Summer”?
The summer of 2020 represented a pivotal point of innovation for the crypto sector, most specifically, DeFi. At the beginning of the year, liquidity locked in DeFi protocols stood at around $600 million – a figure that would rise to $15 billion within the next 12 months. Developments, including flash loans, project governance tokens, and yield farming, all fed into the craze, where each iteration of innovation created yet more interest and adoption.
There was just one huge problem – all the activity was concentrated on Ethereum. By the end of 2020, other blockchains such as Polygon and Solana were beginning to foster Defi ecosystems of their own, promising lower transaction fees and higher throughput. Fast forward to the present time, and there are many blockchains supporting networks of dApps offering access to on-chain financial services.
But the fact is that the overarching network of blockchains operating their own DeFi ecosystems doesn’t replicate the beauty of Ethereum’s OG DeFi network that flourished during the summer of 2020 due to a glaring lack of interoperability.
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