3. Cross-Chain Technology

High transaction fees and scalability issues on the Ethereum network have driven the development of cross-chain technology. This innovation allows transactions and smart contracts to move between different blockchains, making DeFi more scalable and efficient. Polkadot and Avalanche are leading the way in this space with their interoperability solutions.

4. DEXs and AMMs Fuel DeFi Growth

Decentralized exchanges (DEXs) like Uniswap facilitate peer-to-peer trading without intermediaries. Automated market makers (AMMs) ensure liquidity and efficiency. The trading volume on DEXs has seen exponential growth, demonstrating the increasing adoption and reliance on these platforms for decentralized trading.