Market Analysis & Pain Points
The recent explosive growth of the cryptocurrency and blockchain industry has surprised everyone in the industry and outside the industry. DeFi and NFT are the hot spots in the development of blockchain sector. and it only took less than a year to reach an historic-high. The high-speed iteration is dazzling. It seems that the current stage is the most innovative stage in the history of blockchain. The key indicator of most DeFi projects (Total Value Locked) has increased by 10 to 20 times, and their token prices have experienced similar results.
TVL refers to the total dollar amount locked in the smart contract, which provides liquidity for these DeFi agreements. It reflects the users participation and trust in DeFi concepts, as well as the security and stability of different projects. In 2020 alone, TVL has increased by more than 20 times, from US$691 million to US$14.1 billion. In March 2021, the figure has reached to more than US$40 billion on Ethereum chain alone.
In the current world of DeFi, a lot of project information does not have a stable information source channel or a search tool. Whether it is a new investor or an experienced investor, the information acquisition and data analysis of DeFi projects is difficult and requires a lot of time cost and capital cost to conduct research and evaluation. Even with such information, most investors are not familiar with the operation of a Defi project, which more often than not, are not friendly to new DeFi investors.
Due to the convenience of listing decentralized projects on public chains like Ethereum and Binance Smart Chain, many DeFi projects went online in a hurry without security audits and risk assessments, leading to security problems one after another and causing great losses to both project promoters and investors. The root cause is that there is no practical risk return evaluation model in the current market to help investors analyze and evaluate the risks of DeFi projects, or to monitor the real-time status of those projects.
The NFT sector has been gaining momentum recently, and there are still many user pain points in the process of rapid development. For example, there is no universal NFT lending platform in the market, no NFT oracle, and no reliable port for the deposit and withdrawal of NFT transaction funds. New investors and artists are not familiar with the use of cryptocurrencies, which undoubtedly increase their barriers to entry. This is not conducive to the expansion and long-term stable development of the industry.
The DeFi market has exploded with the improvement and maturity of Ethereum, Binance Smart Chain BSC, Huobi HECO Chain, and some other decentralized public chains. Therefore, TheForce.Trade platform will be launched on BSC and Huobi Heco first, with the view to support OKChain and ETh in the near future.