Onchain Finance: The Trillion-Dollar Future of Crypto Markets

Onchain Finance: A New Era

According to Maple Finance CEO Sid Powell, the notion that 'DeFi is dead' signifies a transformative shift rather than an end. Powell foresees onchain finance becoming indistinguishable from traditional markets, with all capital markets activities transitioning to blockchain technology.

The E-commerce Analogy

Powell likens this shift to the rise of e-commerce, where the internet revolutionized shopping habits. Similarly, blockchain is poised to become the foundational layer for global financial transactions.

Institutional Adoption

Powell predicts that major financial entities such as sovereign wealth funds, pension managers, and insurers will dominate this new onchain financial system, seamlessly integrating blockchain into their operations.

The $50 Trillion Stablecoin Revolution

Stablecoins are already gaining traction, with financial giants like PayPal and Société Générale launching their own. Powell envisions stablecoins processing $50 trillion in transactions by 2026, challenging major card networks and offering merchants cost-effective settlement solutions.

This economic incentive will drive rapid adoption among small businesses and push neobanks and traditional banks to support stablecoins directly.

A Trillion-Dollar Market

The DeFi market, currently valued at approximately $69 billion, could soar to $1 trillion in the coming years, driven by the expansion of stablecoins and tokenized assets. Powell sees the growth of DeFi as closely tied to these factors.

Ultimately, Powell's vision transcends the divide between crypto and traditional finance, suggesting a future where blockchain-based infrastructure underpins a unified financial ecosystem.