Decentralized Finance Could Become $ 800 Billion Industry Next Year, Veteran Crypto Investor Says
Roszak added: Speaking to Business Insider, Roszak said he believes a “perfect storm” is on the way for the industry, as the adoption of mainstream cryptocurrency grows as the investors around the world are looking for higher returns, available on DeFi platforms.
Available data shows that so far this year, assets committed to DeFi projects have grown by 385% and that if the current pace continues by the end of next year, the $ 800 billion mark. could indeed be crossed.
Right now, we’re sitting at a DeFi market cap of around $ 80 billion. My feeling is that in a year it will add a zero
Business Insider points out that it is not clear whether the space can maintain its current growth rate, as a recent decline in committed assets has meant that the space is still below levels seen in May.
For Roszak, much of the expansion seen in DeFi is due to investors looking for higher returns on platforms that offer incentives to liquidity providers, such as distributing their own native token. These tokens inflate returns and attract users, but the investor sees the practice “normalize” as the industry continues to grow.
In his words, the government’s relationship with the industry will be vital for its continued growth. He noted that China’s crackdown on cryptocurrencies is “like a trillion dollar gift today that it just handed over.”
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading crypto-assets carries a risk of financial loss.
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