Chainlink Co-Founder Predicts Full DeFi Adoption by 2030, Contingent on Regulatory Clarity

Sergey Nazarov, the co-founder of Chainlink, has put forth a bold projection: the decentralized finance (DeFi) sector is currently 30 percent of the way toward achieving widespread global adoption and could reach the 100 percent mark by the year 2030. In a recent interview released on Tuesday, Nazarov pinpointed two crucial prerequisites necessary for DeFi to scale up to a level comparable with traditional finance (TradFi). These factors are achieving definitive regulatory clarity and securing broad institutional recognition.

Nazarov elaborated on the path to this milestone, suggesting that the 50 percent global adoption threshold will be crossed once regulators, presumably starting in the United States, establish clearer legislative frameworks that validate the trustworthiness of decentralized services. He further forecasts that 70 percent adoption will materialize when effective conduits are established for deploying institutional capital into DeFi ecosystems. The complete realization of the sector's potential, in his view, will signify that its capital base rivals the funds allocated within TradFi, an event he anticipates occurring around 2030.

The sector's current upward trajectory certainly bolsters this optimistic outlook. Data compiled by Binance Research indicates that the total value locked (TVL) in DeFi lending surged by over 72 percent since the beginning of 2025. This figure climbed from $53 billion at the start of the year to exceed $127 billion by the close of November 2025. This performance stands in contrast to July 2025 figures, when lending TVL was approximately $89 billion, with institutional capital accounting for 11.5 percent of that total. This growth throughout 2025, driven by asset tokenization and growing institutional interest, is setting the stage for further development, which Nazarov connects to the creation of a global Contract Internet powered by Chainlink.

Other key figures within the industry have also highlighted significant hurdles preventing greater DeFi uptake. Michael Egorov, the founder of Curve Finance, cited regulatory and legal ambiguity, alongside the necessity for strict Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, as primary obstacles. Egorov also emphasized that resolving the issue of impermanent loss remains the last major technical barrier to genuine on-chain liquidity provision. His new venture, Yield Basis, introduced in June 2025, specifically aims to tackle this technical challenge through an innovative mechanism involving leverage and interest rate rebalancing.

Simultaneously, the regulatory environment itself is undergoing shifts. Michael Selig, the Chief Counsel for Cryptocurrency at the SEC and a nominee for the CFTC Chair position, addressed the Senate during hearings on November 19, 2025, where he characterized the term 'DeFi' as somewhat of a buzzword. Selig stressed that regulators should concentrate their focus on specific on-chain applications, their inherent functions, and whether an actual intermediary is present. His approach, which appears geared toward fostering innovation, could potentially deliver the very regulatory clarity that Nazarov identifies as the catalyst for reaching the 50 percent adoption mark.

Consequently, Nazarov’s proposed roadmap links the exponential growth metrics seen in DeFi during 2025 with the pressing need for institutional integration and legal certainty. While technical hurdles, such as impermanent loss, are actively being addressed by innovators, the regulatory frameworks being shaped in Washington—especially considering Selig's potential role at the CFTC—will dictate the pace at which the sector moves toward the projected 100 percent adoption by the decade's end. The period leading up to 2030 is shaping up to be decisive for the convergence of decentralized technologies with the established global financial system.