Crypto investor Dan Tapiero says he sees massive inbound growth for a specific sector of the digital asset space.
In a new interview with Real Vision’s Raoul Pal, Tapiero says he thinks US-based decentralized finance (DeFi) could explode in size after previously being pushed out of the country due to hostile regulators.
Tapiero, the founder of several venture capital firms in the sector, says institutions are about to discover how small the DeFi world is compared to the rest of the financial markets.
“So as I look at the next two years, I think US-based DeFi could really take off.
So DeFi was essentially pushed outside the US two years ago. And so the first step for everyone is through a centralized exchange, they come on their Kraken, or Gemini, Coinbase, and they buy their Bitcoin.
But now, especially Coinbase and also Kraken, they have made it easy to transition to DeFi, not everyone is going to buy a Ledger and go through Ledger Live or MetaMask.
But I do think that once these institutional guys start owning their Bitcoin through the ETF, they will also own their Ethereum. As they focus on that, they will come to understand that it is actually decentralized finance that has the ability to grow.
I mean TVL (total value locked) in DeFi is I think $100 billion, which is very small. If I add up all the cryptocurrencies and all the stocks, the total value today is about $4 trillion. So of that $4 trillion sitting there, only 2% is actually active in DeFi. And I think that will change.”
TVL is a metric that represents the amount of assets staked or locked on a platform. At the time of writing, DeFi has TVL stands at $136.232 billion.
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