Binance CEO bullish on DeFi over CeFi in upcoming rally.
In July of last year, Binance CEO Changpeng 'CZ' Zhao confidently predicted that decentralized finance (DeFi) would surpass centralized finance (CeFi) in terms of importance and prominence within the financial landscape. He believes that this shift will occur within the next six years. Zhao also noted a recent increase in institutional interest in cryptocurrencies, which he sees as a validation of the industry and its technology. He believes that if even a small portion of the trillions of dollars controlled by institutional investors in the equity market were invested in crypto assets, it would significantly boost the growth of the cryptocurrency market. Binance CEO bullish on DeFi over CeFi in upcoming rally.
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Binance CEO bullish on DeFi over CeFi in upcoming rally. Binance Boss Upbeat About DeFi Domination
The individual in question has maintained a steadfast conviction for the past two months, firmly believing that DeFi is poised to surpass centralized finance in both prominence and significance within the broader financial landscape. This belief is rooted in his confidence in the transformative potential of DeFi, which he envisions as a force that will reshape how we perceive and engage with financial systems.
During a live X Spaces event on September 1, CZ AMA, the CEO of Binance shared his thoughts on the future of DeFi. He expressed his belief that as the industry becomes more decentralized, it will see improvements and hinted at the possibility of DeFi overtaking CeFi in trading volumes in the near future.
“Defi is the future, the volume is somewhere between 5% to 10% of CeFi volumes, which is not small right […] the next bull run may very well make DeFi bigger than CeFi,” CZ said.
Based on the latest industry achievements, CZ claimed that in the first two quarters of 2023, Uniswap, the largest and most widely used decentralized exchange (DEX), outperformed Coinbase, the centralized industry giant, in terms of spot trade volumes.
As per DeFiLlama, decentralized exchanges have witnessed a trading volume of around $12 billion in the past week. The share of DEX in the market for spot trading of cryptocurrencies accounted for almost 18%.
Volumes Are Up
According to reports, the median trading volume on the top three decentralized exchanges (DEX) increased by 444% within a 48-hour period after the United States Securities and Exchange Commission (SEC) took legal action against centralized exchanges Coinbase and Binance on June 9. As of now, the 24-hour trading volume on DEXs is $722.7 million.
Binance CEO, Zhao, has reiterated the exchange's commitment to compliance amidst regulatory challenges in various countries. Despite facing investigations and legal actions in countries like Australia, the United States, Canada, and Europe, Binance is willing to comply with regulations.
CZ, as Zhao is commonly known, anticipates the dominance of decentralized finance (DeFi) over centralized finance (CeFi) in the upcoming bullish market. He also expressed the idea that cryptocurrency adoption should be embraced universally, although different nations may have varying degrees of urgency in adopting it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.