“I think DeFi is here to stay. DeFi is still popular,” says Binance CEO

On the future of decentralized finance (DeFi), some consider it a bubble that will wipe out soon, but some are having positive vibes for DeFi. Binance CEO Changpeng Zhao is on the list of people who believe it has a lot of potential for the present as well as for the future.

Signs of Bubble in DeFi Sector

According to Zhao, DeFi will remain prevail in the crypto space because it has a lot of potential. While talking to RBC, the Russia-based news outlet, Binance CEO admits that many DeFi projects are like a bubble and will soon wipe out, but there are some projects which are responsible for the success and growth of decentralized finance. “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,” he said.

He then compares the case of DeFi with the ICO bubble, which said to be failed in 2017, but some ICO-based projects became very successful, and Binance is an example of this as it also came on the screen as a result of an initial coin offering. Despite criticism from some members of the crypto space, still, DeFi sector has a lot of potential, and funding in the sector is increasing day by day. Zhao stated:

“I think DeFi is here to stay. Even now, with Bitcoin’s popularity rising again, DeFi is still popular. We think there is a lot of growth potential in DeFi.”

As some startups are offering features, such as liquidity and yield farming, to attract people but some are set to fail and “may not lost too long.”

Over the recent few months, decentralized cryptocurrency exchanges have witnessed exponential growth. Zhoa said in August that decentralized exchange will have to become more user friendly if they want to overturn centralized exchanges in trading volume.

DeFi sector has attracted more investment as the total value locked over different protocols has reached $13 billion.

Bitcoin, on the other hand, is also making new records as it has touched $16,900 in the daily trading session.