Decentralized finance (DeFi) is on the brink of mainstream adoption according to Sergey Nazarov, co-founder of Chainlink. He asserts that significant regulatory changes will be pivotal for achieving worldwide acceptance.

Nazarov stated, “I think we’re about 30% of the way there,” during an interview with Michaël van de Poppe. He believes that with clearer regulatory guidelines, DeFi could see a jump to 50% global adoption.

In February, Michael Egorov, founder of Curve Finance, echoed similar sentiments, stressing that legal uncertainties and compliance mandates like Know Your Customer (KYC) regulations are substantial obstacles for DeFi growth.

Nazarov predicts that once the US government solidifies its approach to DeFi, it will trigger a global ripple effect. “A lot of governments follow what the US does because they want to be compatible with the US financial system,” he remarked.

He projects that DeFi’s acceptance could reach 70% once a sound mechanism is established for institutional investors to allocate capital. Ultimately, he forecasts that full adoption may occur around 2030, supported by visualizing the distribution of funds among decentralized and traditional finance.

With DeFi lending gaining steam, new statistics show these protocols have surged over 72% year-to-date, growing from $53 billion to beyond $127 billion in total value locked.