Changpeng Zhao, the CEO of Binance and one of the prominent figures in the crypto world, expresses a strong belief in the significance and potential of decentralized finance (DeFi) over centralized finance (CeFi). Zhao's unwavering belief in this transformation, set to unfurl within the next six years, stems from a compelling tapestry of evidence. Among the threads woven into his conviction are the burgeoning curiosity of institutional investors towards cryptocurrencies, poised to bloom into a fervor, and the looming possibility of an inundation of institutional capital into the cryptoverse.
CZ's optimism regarding the future superiority of DeFi has remained unwavering since he first voiced this view two months ago. He sees DeFi as a force reshaping how we perceive financial systems and interact with them.
During a live event on September 1st, CZ highlighted that the industry continues to centralize, and he expects further developments. He also hinted at the possibility of DeFi surpassing CeFi in trading volume in the near future.
His claim is supported by recent achievements in the DeFi industry. In the first two quarters of 2023, the decentralized exchange Uniswap outperformed the centralized giant Coinbase in terms of spot trading volume. According to DeFiLlama, decentralized exchanges reported approximately $12 billion in trading volume, representing around 18% of spot crypto trading.
The average trading volume on three major decentralized exchanges surged by 444% within 48 hours after regulatory measures were taken by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance on June 9th. At the time of writing, the 24-hour trading volume stands at $722.7 million.
Despite regulatory challenges and investigations in various countries, CZ reiterated Binance's commitment to compliance. Binance is prepared to comply with regulations in countries like Australia, the United States, Canada, and Europe.
In addition to his predictions about DeFi's dominance, CZ emphasized the importance of global cryptocurrency adoption, acknowledging that this adoption might occur at varying speeds in different countries. His overall message reflects an optimistic outlook on the future of DeFi and the cryptocurrency industry.
#DeFiChallenge #DeFiCeFi #DeFiVsCeFi #Binance #ChangpengZhao
