The DeFi is making headlines these days as we see new  tokens being introduced each and everyday. Numbers do not lie we can see that if we check the capitalization of all DeFi tokens. The current capitalization is $129,701,145,619 and this shows that they are receiving a positive response in the market.

When an asset is brought up on the market, mostly we will find some drawbacks which can determine their future.

Whats Challenge could be faced with DeFi tokens?

DeFi tokens has so many advantages over other cryptos on the market, and investors seem to be making a fortune out of these tokens. There is a main disadvantage on DeFi tokens and this is,

Since they are created and rely entirely on the crypto currency which they are built upon  e.g ERC-20 and BEP token. Lets say Ethereum or Binance is facing some difficulties that will also impact the tokens created and residing on their blockchains. Of-course we do not expect that to happen but when it happens its inevitable, they will just suffer the consequences.

Another thing which is worrisome is the cost associated with swapping these tokens, e.g when you try to swap tokens on metamask. When you try to swap on that wallet you will be charged about $100 just to swap, so its another disadvantage when you own these tokens. This might be a problem which will determine their dominance on the market.