Cryptocurrency exchange Binance CEO Changpeng Zhao is the 13th president of BNB. in a blog post after he completed his incineration, he evaluated DeFi and the cryptocurrency market for the remaining quarter.
Defi contributed greatly to the growth of the sector in the quarter we left behind, Zhao said. The increasing number of cryptocurrencies locked in liquidity pools has made cryptocurrency prices more resilient to negative news, the CEO said, adding: “a series of bubble bursts, ‘rugs, price falls or whatever you call it this quarter. . It is an important reminder that in a decentralized world you must always be alert and learn to protect yourself., ” He said.
“In defi, annual returns will return to a reasonable range”
Liquidity pools, automated market makers, loans on the chain, etc. DeFi brought it to the world of cryptocurrency. “High returns won’t last that long, ” Zhao said, stressing that he believes many key innovations will be permanent. The numbers will return to a reasonable double or single-digit range over time. “he says.
As Zhao points out, the DeFi industry has experienced dramatic growth in the past few months. Numerous new Defi platforms have emerged and some have reached key-value peaks. There were protocols that gave returns as much as multiples of the amount invested. On the other hand, these have been likened by many experts to the Ponzi scheme. Sometimes there were scandals like Eminence.
Zhao reiterated once again that he believes Defi will outperform Central stock markets in the long term. For some reason, the CEO who thinks that can’t be right, the plea of a low number of active users in their causes, the locked value is high, although 99.9% of the world’s wealth is a currency of nominal said, to bring them into the world of crypto and fiat of the central market there is a need still to bridge. in the form listed. Zhao also added that not everyone has enough technical knowledge to use Defi at this stage, and that central shopping is easier for most people. The CEO believes this will be instilled in time.
Finally, Zhao said he expects the bubbles in Defi to burst a little more in the coming months, and believes there will be more “rises” and more fraud incidents.
