Increase in Institutional User Participation

Reviewing the early development process of DeFi industry, "retail-led" is the most significant label in the market. In the early days of the "DeFi Summer" outbreak in 2020, the market participants were mainly cryptocurrency enthusiasts and individual investors, who became the first explorers of the DeFi ecology with their curiosity about blockchain technology and the tolerance of high risk. Today, with the continuous maturity of the DeFi market and the gradual clarity of the regulatory environment, institutional users are accelerating their entry, becoming the core force of reshaping the market pattern. On the one hand, as a "bridge", institutions can introduce funds, users and scenarios from traditional financial markets into DeFi. On the other hand, the professional needs of institutions will drive the further upgrading of DeFi technology. For example, in order to meet the demand of "asset traceability", the cross-chain technology will be iterated in the direction of "full link verification"; in order to meet the demand of "privacy compliance", the zero-knowledge proof technology will be deeply integrated with the KYC system of traditional finance to achieve "balance between privacy protection and compliance review". It can be said that the admission of institutional users is not a weakening of the "decentralized" nature of DeFi, but a strengthening of its "financial attribute". It transforms DeFi from a "niche speculation tool" to an "infrastructure serving the whole finance", and promotes the industry to a new stage of more mature, more professional and more social value.