Roszak added: Speaking to Business Insider, Roszak said he believes a “perfect storm” is underway for the industry, as mainstream cryptocurrency adoption is growing while investors throughout the world have been chasing higher yields, which are 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 broken.
Right now we’re sitting at a DeFi market cap of about $80 billion. My sense is that a year from now it will add a zero
Business Insider points out that whether the space can maintain its current growth rate isn’t clear, as a recent dip in assets committed has meant the space is still below levels seen in May.
To Roszak, a lot of the expansion seen in DeFi is due to investors chasing higher yields on platforms that offer incentives to liquidity providers, such as the distribution of their own native token. These tokens inflate yields and attract users, but the investor sees the practice “normalize” as the sector keeps growing.
Per his words, the government’s relationship with the industry will be vital for its continued growth. He noted that China cracking down on cryptocurrencies is “like a trillion-dollar gift today that they’ve just handed over.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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