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Binance CEO Changpeng ‘CZ’ Zhao made a confident claim last July that decentralized finance, commonly referred to as DeFi, is set to rise above centralized finance, or CEFI, in terms of prominence and importance within the financial landscape. Is. As per his visionary vision, this transformational change is expected to materialize during the next six years.
Zhao pointed to the recent increase in institutional interest in cryptocurrencies, seeing it as recognition of the industry and its technology. He believes that if even a small fraction of the trillions of dollars controlled by institutional investors in the equity market are invested in crypto assets, it will greatly fuel the growth of the cryptocurrency market.
Binance Boss Bullish About DeFi Supremacy
Even after two months have passed since his initial assessment, his conviction remains unwavering: his conviction that the DeFi sector is on the verge of surpassing centralized finance in both prominence and importance within the broader financial landscape. This claim reflects his firm belief in the transformative potential of DeFi, envisioning it as a force that will reshape our perception of and engagement with financial systems.
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live now.
— CZ 🔶 Binance (@cz_binance) 1 September 2023
At a live XSpace event, known as the CZ AMA, on September 1st, the Binance boss expressed his thoughts on the future of DeFi. He added that he believes the industry will see improvements as it becomes more decentralized and also hinted at the possibility of DeFi overtaking CeFi in trading volumes in the near future.
“DeFi is the future, with volumes between 5% and 10% of CeFi volumes, which is not small. […] “The next bull run could make DeFi even bigger than CEFI,” CZ said.
CZ’s claim was based on the latest achievements of the industry. In the first two quarters of 2023, decentralized exchange (DEX) Uniswap, which holds the distinction of being the largest and most widely used DEX, outperformed centralized industry giant Coinbase in terms of spot trade volume. display displayed.
Bitcoin is still stuck at the $25K level. Chart: Tradingview.com
According to DeFiLlama, decentralized exchanges have recorded almost $12 billion in trading volume within the past week. The proportion of DEX share in the overall market for spot trading of cryptocurrencies was around 18%.
the volumes are turned up
Average trading volume on the top three decentralized exchanges (DEXs) soared 444% in a 48-hour period following legal action by the United States Securities and Exchange Commission (SEC) against centralized exchanges Coinbase and Binance on June 9. Hourly trading volume on the DEX is $722.7 million at the time of publication.
Meanwhile, Zhao reaffirmed the exchange’s commitment to compliance in response to the exchange’s recent regulatory challenges in several countries. According to Zhao, Binance is prepared to comply with the regulations despite regulatory scrutiny and legal action in countries such as Australia, the United States, Canada, and Europe.
In addition to anticipating the dominance of Decentralized Finance (DeFi) over Centralized Finance (CEFI) in the coming bullish market, CZ also expressed the belief that the adoption of cryptocurrencies should be universal, albeit with varying degrees of success in different countries. degree of urgency.
Featured Image from OKEx Exchange
Source: bitcoinist.com
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