During a live broadcast on X Spaces (formerly known as Twitter Spaces) on September 1st, Binance CEO Changpeng “CZ” Zhao shared his predictions about the future of decentralized finance (DeFi). He stated that DeFi has the potential to surpass centralized finance (CeFi) in the next price surge. He emphasized that the more decentralized the industry becomes, the better it is. CZ predicted that in the near future, DeFi might dominate trading volumes over CeFi. He also expressed a positive view on a recent lawsuit involving the decentralized protocol Uniswap.
On August 30th, a US federal court dismissed a class-action lawsuit against Uniswap and related individuals. The plaintiffs claimed they were deceived by fake tokens on the decentralized Uniswap exchange. While the court rejected the lawsuit due to the difficulty in identifying fraudsters, CZ still believed in the importance of protecting users and reducing risks for investors.
CZ also shared that the development of DeFi is a positive sign, as developers have the freedom to write code and contribute to the cryptocurrency industry. Recent data also indicates that investors are shifting funds from centralized finance projects to DeFi, indicating a growing interest in DeFi.
According to a report from CoinGecko, in 2022, digital asset investment firms invested $2.7 billion into DeFi projects, marking a 190% increase compared to 2021. Meanwhile, investments into CeFi projects decreased by 73% to $4.3 billion within the same year. This suggests that DeFi is emerging as a new high-growth sector in the cryptocurrency industry and hints at a reshuffling of funding sources for CeFi projects.