Binance CEO admits next bull market can make DeFi bigger than CeFi

Cryptocurrency platform Binance CEO, Changpeng Zhao, opined that the decentralized finance industry has the potential to outperform centralized finance (CeFi) in the next digital asset market rally.

“DeFi is the future, their volume is about 5–10% of CeFi, which is not so small. […] The next bull market could very well make DeFi bigger than CeFi,” Zhao said.

He believes that the more decentralized the cryptocurrency sector becomes, the better for all members of the community. The businessman also noted the positive moment associated with the dismissal of the class action against Uniswap by the court. Back in 2022, the decentralized exchange was accused of distributing unregistered securities, including the UNI token.

“Developers write code, this code is freedom of speech. So the development is really good,” Zhao said.

According to the head of Binance, the world needs cryptocurrencies, but some countries need it more than others. Those who intend to maintain a leading position in the field of financial innovation should recognize the crypto industry, Changpeng Zhao emphasized.

And analysts state that the current financial crisis has not spared the decentralized finance industry. The total volume of assets locked in DeFi protocols (TVL) has decreased to an all-time low in the last couple of years.

According to the DeFillama analytical project, after a series of recent price drops, the TVL of decentralized exchanges has decreased to $37.7 billion. Previously, similar values were recorded in early February 2021, when this parameter fell to $37.1 billion.

At the end of 2021 and the beginning of last year, the daily volume of transactions on DeFi platforms reached an average of about $4 billion. And over the past few months, it has fallen to $1.5 billion.

Do you believe in the prospects of the decentralized finance sector?