Decentralised Finance is reshaping the way money flows, challenging long-standing barriers to access. With blockchain at its core, it holds revolutionary potential—but can it truly deliver on its promise?
Decentralised Finance (DeFi) is experiencing an explosive resurgence. After a significant crash in 2022, borrowing activity on major DeFi platforms surged nearly 10-fold, reaching $19 billion by the end of 2024. By April 2025, the total money locked in DeFi platforms skyrocketed to $113 billion, signalling how rapidly DeFi is disrupting the financial world.
While the rise in DeFi is evident, it’s not just about the growing popularity of digital money. It represents an entirely new way of saving, borrowing, and transacting in regions where traditional banking infrastructure has often failed.
DeFi operates on blockchain technology, utilizing smart contracts—self-executing computer programs that automate transactions once predefined conditions are met.
Unlike traditional banks, which act as intermediaries, DeFi allows anyone with a smartphone, an internet connection, and a crypto wallet to perform financial transactions, bypassing banks entirely.
The central advantage here is that DeFi doesn’t require a physical bank, making it accessible to populations who live in areas where financial institutions are either non-existent or difficult to access.
Several factors are driving DeFi’s growth. First, Ethereum—once the dominant blockchain in DeFi—still commands 66% of the total value locked, but its dominance has decreased as other blockchains gain traction. Platforms like Tron (with JustLend at $6.5 billion), Binance Smart Chain (Venus at $2.4 billion), and Solana (Jito at $1.9 billion) are emerging as serious contenders in the DeFi space.
This decentralised shift is a response to gaps in traditional finance. It opens up the possibility for financial inclusion by providing alternatives for people in underserved areas to manage their finances without the need for a physical bank.
DeFi’s real-world impact is already visible in regions with limited banking infrastructure. In Kenya and Nigeria, where mobile money services like M-Pesa are widely used, DeFi platforms such as Celo and Kotani Pay have taken financial inclusion a step further.
Users can now send and receive digital dollars using just their phone number. For instance, a worker in Nairobi can get paid in stablecoins through Celo and cash out using M-Pesa—no smartphone or traditional bank account required… to read more click here.