A closely followed crypto analyst sees big potential for decentralized finance (DeFi) to disrupt the traditional financial system.
In a new discussion on crypto analyst Benjamin Cowen’s YouTube channel, the host of InvestAnswers says that DeFi is still as revolutionary as people said it was in 2020.
“I am huge into DeFi. I’m a tradFi guy now so I can see the potential. I can see what’s actually happening live, the development of DApps (decentralized applications) that literally revolutionize everything from the payment business to the borrowing, lending, financing, derivatives. Everything is going to move to the chain. Everything will be tokenized.”
With the total value locked in decentralized finance protocols ballooning from just under $30 billion in 2020 to its current $71.59 billion, the analyst says that the sector will continue to grow.
He also says he’s bullish on smart contract platforms Ethereum (ETH) and Solana (SOL) because of the anticipation that DeFi will take over the traditional financial system.
“DeFi will be huge. It’s going after a $40 trillion market. That’s why I’m so bullish on things like Ethereum despite its problems and its delays and everything else and Solana.
I think there’ll be room for many later ones to do a whole bunch of stuff that will literally disrupt the traditional banks, the Visas and Mastercards, the borrowers, lenders, the capital markets – you name it. Everything is going to be upset. We just don’t know when a tipping point is going to come.
Even if you look at the transaction volumes on things like Ethereum and Solana today, it is staggering, and you can actually use fundamental traditional valuation models to value things like Ethereum and per those, Ethereum is actually undervalued today.”
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The post Here’s Why Decentralized Finance Will Completely Take Over Traditional System, According to Top Crypto Analyst appeared first on The Daily Hodl.