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The DeFi market is in for a bubble ...

DeFi Market Wants the Fate of 2017 ICO Bubble – Binance CEO Russia & CIS
CONTENT

  • Only strong projects can weather the DeFi market crash

  • The current situation with DeFi resembles the ICO market in 2017, notes the head of Binance in Russia and the CIS

  • So far, decentralized platforms cannot completely replace centralized counterparts.

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Development Director of Binance in Russia Gleb Kostarev believes that the situation on the decentralized finance market is somewhat reminiscent of the 2017 hype

The vast majority of startups in the decentralized finance (DeFi) marketplace are blockchain-based financial services that offer users access to open, efficient and … More. This opinion was expressed by the head of Binance in Russia Gleb Kostarev at the DAO Consensus conference. According to Kostarev, the story of the hype around DeFi will repeat the 2017 scenario..

The DeFi market is in for a bubble ...

“The problem with DeFi is that there is partly hype. It resembles 2017, ICOs and, of course, we must be prepared for the fact that most of the startups in the DeFi field will close [and] go bankrupt. History will repeat itself again, as it was in 2017 “, – he said.

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However, the head of Binance in Russia noted that the current market situation opens up new opportunities, which Binance itself took advantage of three years ago, raising funds to launch the exchange.

“Of course, the strongest startups will survive and continue to develop successfully,” added Kostarev.

Decentralization is near

According to Kostarev, decentralized exchanges (DEX) do not yet have a chance to gain a significant market share due to the lack of algorithmic trading. Also, the head of Binance in Russia refers to the restrictions for DEX’s “from the point of view of the blockchain”, which, however, will be resolved in the future..

Another disadvantage of decentralized platforms, according to Kostarev, is the lack of support for fiat payment gateways. The lack of decentralized fiat-backed sites “limits the influx of new people,” he notes..

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Although decentralization, according to Binance, is a market trend, and the DeFi sector will continue to grow, centralized solutions are indispensable for now, Kostarev noted. At the same time, decentralized technologies have a number of undeniable advantages over their centralized counterparts in terms of doing business..

The DeFi market is in for a bubble ...

“From the point of view of the exchange infrastructure, DEX’s are much cheaper to maintain. You don’t need to maintain a staff of lawyers, you don’t need to maintain a staff of listing specialists. In fact, you only need to maintain a development team, “said the head of Binance in Russia..

In the meantime, the total capitalization of all protocols in the DeFi segment has already reached a record high of $ 13 billion, amid the rapid growth in the price of tokens. Token Became Record Holder As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More Yearn (YFI), which has gained more than 90% since the beginning of November, while the YAX token has jumped 82% over the same period.

Whether the NFT industry can squeeze out DeFi – read in a special material from BeInCrypto.

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