Binance boss CZ Predicts DeFi will grow bigger than CeFi soon
Binance CEO says DeFi might overtake traditional finance soon. With DeFi trades rising and a 190% investment increase in 2022, it's becoming the new big thing in crypto.
Binance's boss, Changpeng “CZ” Zhao, believes that decentralized finance (DeFi) could soon be more popular than traditional finance (CeFi).
In a recent online chat on X Spaces, Zhao said DeFi is the future. He noted that even though DeFi's activity is only 5-10% of CeFi's, it could grow bigger in the next strong market period.
After the U.S. government agency (SEC) took action against big platforms like Coinbase and Binance, the activity on the top three DeFi platforms went up by 444% in just two days. Now, they handle over $722 million in trades every day.
Zhao also talked about a recent court case against a DeFi platform calledUniswap. The case was about people who said they lost money because of fake tokens on the platform. But the judge said the platform couldn't be blamed and highlighted that unclear rules mean less protection for users.
A person in the chat mentioned that developers shouldn't be blamed if someone misuses a DeFi platform. Zhao agreed, saying writing code is like free speech.
Recent numbers show that people who invest money are now focusing more on DeFi than on CeFi. A report also said that in 2022, investment in DeFi went up by 190% to $2.7 billion. But investment in CeFi dropped by 73% to $4.3 billion. The report thinks this means DeFi might be the next big thing in the crypto world.
