The Shadow Banking Revolution: Why Cryptocurrencies Thrive Outside the Bank Vaults

The last decade has witnessed a phenomenal surge of interest in cryptocurrencies and Decentralized Finance (DeFi) from the general public, businesses, and financial markets alike. Starting as niche technological innovations, these digital assets have grown rapidly, driven by investors searching for alternative opportunities in a low-yield environment. This growth, however, has been characterized by high market volatility and record-high market valuations. The massive capitalizations achieved by cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have raised crucial questions about their overall "footprint" on the existing global financial system. Are traditional financial giants—the banks—embracing this new technology, or are new, less-regulated entities taking over?