DeFi is growing fast but won’t replace banks, says Jupiter president

Core Viewpoint - Decentralized finance (DeFi) is growing rapidly but is unlikely to completely replace traditional banking, with both systems expected to operate in parallel in the future [1][6]. Market Size and Growth - The current market size of DeFi is still small compared to centralized crypto, but it is experiencing rapid growth [2]. - The share of trading on decentralized exchanges has significantly increased, rising from nearly zero three to four years ago to approximately 30% today [3][4]. Coexistence of Financial Systems - Traditional financial institutions are expected to continue existing alongside DeFi, as many users prefer trusted intermediaries for convenience and regulation [5][6]. - The future financial landscape is envisioned to include a thriving DeFi ecosystem operating in parallel with traditional finance [7]. Impact on Financial Inefficiencies - The emergence of on-chain systems has the potential to reshape parts of the financial system by reducing inefficiencies, particularly in payments and transfers, which often incur high costs due to multiple intermediaries [8].