However, Changpeng Zhao warned that some Defi projects will not last long and possibly never recover from the bubble.
Speaking to a Russian media outlet RBC, Binance CEO Changpeng Zhao (CZ) said that the decentralized finance alias DeFi is here to stay despite showing signs of a market bubble.“A lot of DeFi projects are already in a bubble, and I also believe that there are some signs of a bubble in the DeFi industry, but this does not mean that DeFi will eventually disappear entirely,” CZ highlighted.The Defi ecosystem has boomed in the past few months with most of the native respective tokens experiencing heightened volatility.According to Zhao, the DeFi industry has a significant potential for market growth in the future based on the booming demand. He further noted that the DeFi tokens are still very popular amid the ongoing Bitcoin rally.However, Zhao warned that some DeFi projects will not last long and possibly never recover from the bubble.DeFi Ecosystem in Relation to Highlights Made by CZAccording to the metrics provided by Coinmarketcap, the DeFi crypto market cap stands at $16.04 billion. In addition, Defi Pulse market analysis shows that the total value locked in the DeFi ecosystem as of November 17 stands at $12.909 billion.Leading the list is the MakerDAO Maker with approximately $2.34 billion locked assets in its ecosystem, thus a dominance of 18.16% of the total Defi ecosystem. Followed closely by WBTC with approximately $2.11 billion locked assets in its ecosystem after it added around 4.3% in the past 24 hours. Compound closes the top three Defi projects with $1.47 billion locked assets in its ecosystem having added approximately 3% in the past 24 hours.The ecosystem is poised to further explode once Ethereum 2.0 is fully implemented and more projects get built on the Binance Smart Chain that offers more scalable services than those in Ethereum blockchain.The DeFi industry is facing immense challenges that put it at risk of lagging behind in the near future. Among the challenges is the increased level of scams especially from project managers who vanished with users’ locked assets.Besides, there has been an increase in DeFi attacks that have left most users stranded in the market.Earlier today Origin Protocol reported that attackers had compromised its system and made away with $7 million of customers’ funds. With no refund policies, most projects are left bankrupt after such an attack and users counting immense losses of capital.However, there are insurance companies that are developing crypto covers that details the DeFi world. One such company is the decentralized Bridge Mutual insurance provider that announced an insurance policy for the stablecoin industry.next Share:
.ml-error input {
background: url(https://bucket.mlcdn.com/images/default/error-icon.png) 98% center no-repeat #ffffff !important;
background-size: 24px 24px !important;
}
.ml-subscribe-close {
width: 30px;
height: 30px;
background: url(https://bucket.mlcdn.com/images/default/modal_close.png) no-repeat;
background-size: 30px;
cursor: pointer;
margin-top: -10px;
margin-right: -10px;
position: absolute;
top: 0;
right: 0;
}
