• According to a veteran cryptocurrency investor, decentralized finance could become a $800 billion industry by next year

  • Matthew Roszak, a veteran cryptocurrency investor and co-founder of decentralized finance (DeFi) platform Vesper, believes the DeFi industry could reach $800 billion next year if its current exponential growth trend continues.

    Roszak told us that he believes the industry is in the midst of a “perfect storm,” as mainstream cryptocurrency adoption grows and investors around the world seek higher yields, which are available on DeFi platforms.

    Roszak continued:

    Right now, the DeFi market cap is around $80 billion. My guess is that it will add a zero in a year’s time.

    According to available data, assets committed to DeFi projects have increased by 385 percent this year, and if the current pace continues, the $800 billion mark could be broken by the end of next year.

    According to ULTCOIN365, it is unclear whether the space can maintain its current growth rate, as a recent drop in assets committed means the space is still below levels seen in May.

    According to Roszak, much of the growth in DeFi can be attributed to investors seeking higher yields on platforms that provide incentives to liquidity providers, such as the distribution of their own native token. These tokens increase yields and attract users, but the investor expects the practice to “normalize” as the sector expands.

    According to him, the government’s relationship with the industry is critical to its continued growth. He noted that China’s crackdown on cryptocurrencies is “like a trillion-dollar gift they just handed over today.”

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