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Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange Binance, said decentralized finance is here to stay despite many DeFi projects showing signs of being in a bubble.
In a November 17 interview with Russian news agency RBC, Zhao said that “many DeFi projects are already in a bubble, and I also believe there are some signs of a bubble in the DeFi sector, but that doesn’t mean that DeFi will eventually disappear altogether. “
Zhao went on to say that the DeFi sector has great growth potential, noting that DeFi still remains popular during an ongoing Bitcoin (BTC) rally. The executive also pointed out that initial coin offerings, or ICOs, were called a bubble in 2017, but a number of ICO-born projects, including Binance, are still doing great:
“Companies create new tokens, issue them as a reward. This is not a longstanding story. But I think DeFi is here to stay. Even now, with Bitcoin’s popularity on the rise, DeFi is still popular. We believe there is a lot of growth potential in DeFi. “
However, Zhao said some DeFi projects “may not last too long” despite the industry providing a number of incentives through DeFi yield farming and DeFi liquidity.
Zhao also claimed that cryptocurrencies like Bitcoin are the best form of money, calling it “freedom money for millions of people around the world”. The CEO predicted that the cryptocurrency market has the potential to grow to 100,000% as digital assets, presumably, will become more widely adopted than fiat.
As he sees a future for DeFi, Zhao has noted that obstacles to the industry achieve mass appeal. In August, he said that centralized exchanges will remain popular until decentralized exchanges become more user friendly.
