Veteran Crypto Investor Says DeFi Could Be Worth $800 Billion Next Year
A veteran cryptocurrency investor and co-founder of decentralized finance (DeFi) platform Vesper, Matthew Roszak, believes the DeFi industry could hit $800 billion next year as its exponential growth trend continues.
Roszak, who’s net worth is 1.5 billion according to Forbes, said to Business Insider he believes a “perfect storm” is coming for the industry, as mainstream crypto adoption is growing, as global investors are chasing higher yields, which are available on DeFi platforms.
“Right now we’re sitting at a DeFi market cap of about $80 billion. My sense is that a year from now it will add a zero,” said the investor.
According to Defi Pulse, so far this year assets committed to DeFi projects have grown by 385% and that if the current pace continues by the end of next year the $800 billion mark could indeed be broken.
A fast-growing industry doesn’t necessarily mean it’s a big one. Or as Roszak put it: “$80 billion is still a rounding error for finance.”
The question is if the sector can indeed maintain today’s breakneck growth. A recent DeFi dip has meant that assets today are still below May levels.
Majority of DeFi’s expansion has come from investors chasing massive yields, sometimes in the double digits, available on platforms like Compound and Aave, which often offer incentive tokens to inflate yields and attract users. This sort of practice most likely will “normalize” as the sector grows, said Roszak.
“There is a cost on these platforms to drive adoption,” he said. “That is stimulating greater yields in order to acquire customers.”
According to Roszak government’s relationship with DeFi will be essential to the industry’s continued growth. In 2020, he joined a political action committee that tried to give $50 of crypto money to each member of Congress.
For those on Capitol Hill, he frames the issue with respect to crypto-skeptical China – as a possible area of strategic advantage for America.
Roszak opined:
“This country has an incredible 1990s internet level advantage. Seeing China [crack down on crypto] is like a trillion-dollar gift today that they’ve just handed over.”
