Dan Tapiero, a well-known crypto investor, predicts a massive boom for the US decentralized finance (DeFi) sector within the next two years. He believes this sector is on the verge of a significant expansion.
DeFi’s Untapped Potential
In a recent interview, Tapiero highlighted the relatively small size of the DeFi market compared to the overall financial landscape. He pointed out that while the total value locked (TVL) in DeFi is currently around $136 billion, the combined value of cryptocurrencies and equities is approximately $4 trillion. This means only about 2% of the total market is currently involved in DeFi.
Institutional Investors Key to Growth
Tapiero suggests that institutional investors are just beginning to understand DeFi’s potential. He explained that the ease of access to DeFi through major exchanges like Coinbase and Kraken will play a significant role in this growth. As institutions gain more exposure to Bitcoin and Ethereum through ETFs, they’ll likely start exploring the decentralized finance world and its opportunities.
The Future of US DeFi
Tapiero’s prediction is based on the belief that the relatively low participation in DeFi represents a massive untapped market. He anticipates a significant shift in the coming years, with much greater institutional involvement driving substantial growth in the US DeFi sector. He believes that this sector is uniquely positioned for explosive growth.
