Three things that the crypto sector must provide in order for TradFi to become genuinely mainstream

<p>Earlier this year, we witnessed the crypto economic system experience exponential boom as massive sums of money were poured into various cryptocurrencies, decentralised finance (DeFi), nonfungible tokens (NFT), crypto indices, insurance coverage goods, and decentralised options marketplaces.</p> <p>The total value locked (TVL) in the DeFi industry has increased from $18 billion in January 2021 to $240 billion in January 2022 across all chains. With so much liquidity in the ecosystem, the crypto loan market has increased significantly, from $60 million in January 2021 to more than $400 million by January 2022.</p> <p>Regardless of the exponential advancement and innovation in DeFi products, the crypto lending market is primarily limited to token-collateralised loans, which need the pledge of one cryptocurrency as collateral to borrow another coin.</p> <p>There are other platforms that provide NFT-collateralised loans, such as Nexo and Genesis, however the service is mostly for institutional buyers with blue-chip NFTs. There aren't any more than token-collateralised loans available for retail lots.</p> <p>If the crypto economy is to grow to the size of any real economy, it must reach out to a large number of retail customers and be able to provide them with financing options.</p> <p>The following are the critical factors that must be developed before crypto banking infrastructure can compete with that of banks.</p> <p>A diverse range of items and businesses</p> <p>One of the most frequently asked questions from someone who is new to the crypto economy is, "What can I buy?" Apart from NFTs, DeFi merchandise, staking, and liquidity provision, there isn't much more in the current architecture.</p> <p>Currency exists in a typical economic system because exchanging items for companies, or vice versa, does not always have a 1:1 ratio, hence currencies serve the purpose of facilitating product and company transactions. Currency exists in the cryptoeconomic system before goods and services are widely available t