- Binance's CEO, Changpeng Zhao, recently spoke on the topic of DeFi being a bubble.
- CZ admitted that there are signs of some projects, and even DeFi itself, being a bubble.
- But, he also noted that he doesn't think DeFi will disappear, noting that many ICOs are still doing great.
Whenever a sector starts showing signs of a bubble, that is when people usually start to leave. This is not surprising, as no one wants to be there when the bubble bursts and all assets start losing their value at a rapid pace, and the sector crashes completely.
While many have started noticing the familiar bubble pattern in DeFi, Binance’s CEO thinks that the pattern will not go down the same road as with other trends.
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DeFi is showing signs of being a bubble, says Binance CEO
Binance’s CEO, Changpeng Zhao, recently spoke about DeFi projects showing signs of being a bubble. He admitted to seeing these signs himself in a recent interview with the Russian news agency, RBC. However, Zhao gave a different prediction than what most would have expected regarding how it will all play out.
According to him, yes, a lot of DeFi projects are already in a bubble. More than that, he believes there are signs of a bubble in the entire DeFi sector. However, he doesn’t believe that DeFi will eventually disappear entirely.
What will happen to DeFi?
Despite the signs of a bubble, Zhao still thinks that DeFi has a lot of room and potential to grow. In fact, he noted that DeFi is still very popular, despite the Bitcoin rally that has been dominating headlines, as well as the crypto industry over the last several days.
He also pointed out that the crypto industry also viewed ICOs as a bubble back in 2017. However, it has been three years since then, and many of the ICO projects, such as Binance’s BNB itself, are still alive and well.
As for DeFi, he also said that it is true that some projects might not last for much longer. However, that is not unusual either. After all, not every project can be innovative and necessary enough to stay for a long time, and the weaker ones will eventually disappear.
He spoke of Bitcoin itself then, calling it the best form of money, and naming it the money of freedom for millions around the world. Lastly, Zhao predicted that the crypto market has the potential to grow as much as 100,000%, and that crypto will be more widely adopted than even fiat itself.