#Binance CEO Changpeng "CZ" Zhao recently predicted that decentralized finance (DeFi) has the potential to outperform centralized finance (CeFi) in the upcoming bull market.

Ask Me Everything Session

This is what CZ predicted during the live "X Spaces" where he shared his thoughts about the future of DEFI in the "AskMeAnything" session. Among other things, he said:

DeFi will come; the volume is somewhere between 5% and 10% of CeFi volumes, and that's not small at all, but the next bull run could make Deci bigger than CEFI.

Rejection of the case in America

In June, in response to the US Securities and Exchange Commission's (SEC) lawsuit against the centralized exchanges Coinbase and Binance, the average trading volume on the 3 major decentralized exchanges (DEX) showed a remarkable increase of 444% in just 48 hours. At the time of publication of this publication, the total 24-hour trading volume in DEXs had reached an impressive $ 722,776,226.

CZ also shared his opinion on the recent dismissal of the case against the Uniswap decentralized protocol. “The Uniswap event was extremely positive, extremely reasonable, logical and clear. That's very good,” he said.

On August 30, a US federal court dismissed the class action lawsuit against Uniswap, as well as its CEO, foundation and venture capitalists. This lawsuit was filed by plaintiffs who claim that they suffered financial losses due to counterfeit tokens on a decentralized cryptocurrency exchange.

The judge dismissed the case due to the inability of both sides to identify the fraudsters, stressing that the uncertainty in the legislation has led to a decrease in investor protection:

Now they are summoning the Uniswap defendants to court in the hope that this Court Decries the fact that the current state of cryptocurrency regulation leaves them without compensation.

During the meeting, a user of the X platform raised the issue of the judge's decision, which ruled that developers cannot be held responsible for the misuse of a DeFi platform. This decision was welcomed by the user as good news for the developers of DeFi. CZ shared this perspective and stressed the importance of more protection for the sector.

“For developers who write code, this code is a kind of freedom of expression. So the development process is really positive,” CZ said.

Directing resources

Recent data shows that venture capitalists are redirecting their resources from CeFi projects to increase their investments in DeFi projects.

According to CoinGecko's report dated March 1, digital asset mutual funds invested a huge $ 2.7 billion in DeFi projects in 2022, which represents an impressive increase of 190% compared to the previous year. However, during the same period, investments in CeFi projects decreased by 73% to $ 4.3 billion.

According to the report, this seems to indicate that DEFI could be the new growth area in the crypto industry. It is also suggested that the decrease in financing for CeFi projects may be due to a possible saturation point in that sector. #czbinance #crypto2023 #BTC