Running behind the next Bitcoin (BTC) wouldn’t be so pointless anymore; DeFi would represent one of the best investment opportunities of the decade since the oldest crypto. The sector is exploding its market cap, but it should get rid of the clones that are dampening investor enthusiasm.
DeFi: the new Bitcoin?
The latest statistics from DeFi indicate that the industry’s market capitalization is now over $ 13 billion.
6 months earlier, the market cap was estimated at $ 5 billion, or even slightly below; it has therefore registered an increase of almost 160% since then.
The figures for Total Value Locked (TVL) are also impressive: this amount is currently estimated at $ 8 billion, compared to $ 700 million at the start of the year.
The trader and former head of Messari, Qiao Wang, believes that DeFi represents one of the best investment opportunities of the decade since Bitcoin and Ethereum (ETH).
He compares in a tweet, the current situation of DeFi to that of Bitcoin in 2013 andEthereum in 2015, explaining that this was an opportunity not to be missed, for those who did not take the “first 2 trains”.
Technically, the growth potential of the Challenge would equal that of the entire financial sector, which represents trillions of dollars.
Clones, a cancer for DeFi
Theenthusiasm around DeFi decreased slightly following the setbacks related to malfunctions of a wave of clones based on existing protocols from yield farming.
These products are also responsible for the spectacular increase in transaction costs on Ethereum.
The co-founder of Coin Metrics, Jacob Franek, considers these costs as an obstacle to large-scale mobilization around DeFi.
Qiao Wang admits that yield farming could be a financial bubble, but that doesn’t stop him from believing in the potential of DeFi.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
From 5 billion to 13 billion in 6 months: will growth be linear, exponential or will it slow down over the next 6 months? The more cautious could miss another great investment opportunity in the cryptosphere; they might also be right to be wary of a DeFi that looks like a bubble that will eventually explode, even if the number of active addresses in DeFi tend to show otherwise. Go there at the risk of regretting it or waiting at the risk of regretting it? Regrets only come later.
Litecoin, welcome in the Silver Age