Arthur Cheong, the CEO of DeFiance Capital, thinks decentralized finance (DeFi) is the hottest sector in crypto right now. He says DeFi has the “biggest product-market fit” because it’s finally maturing.
DeFi’s Comeback
Cheong says that DeFi has been through a rough patch, with lots of hacks and unsustainable projects. But he believes that the sector has learned from its mistakes and is now seeing real growth. He points to protocols that are still thriving even after incentives have ended, and even surpassing their previous highs.
“We started as a DeFi-focused fund, and when DeFi was overvalued, we reduced exposure,” Cheong explained. “But after four years, DeFi is becoming very investable again. Everyone knows what doesn’t work, and what does work is working fantastically.”
The Future of DeFi
Cheong believes that DeFi is now ready to take the next big step.
“We’re at a stage where we can mature and scale to the next level,” he said. “We’ve learned what doesn’t work, and now we’re ready for DeFi to get to the next level of growth.”
He’s excited about the potential for innovation and development in the space.
