Charles Hoskinson Says Cardano Will Transform DeFi Space

Although it has been a very short span of time since DeFi was introduced, it has gained a lot of traction very swiftly and has become equally more appealing. The biggest examples of its popularity can be seen in projects such as Polygon and Solana, which have evolved themselves so efficiently that they are competing with Ethereum now. DeFi smart contracts have also been bought on by Cardano after its new upgrade, known as ‘Alonzo’ hard fork, was introduced.

DeFi’s Bubble

The founder of Cardano, Charles Hoskinson, says that decentralized finance is in a very complex economic cycle right now where financial markets are in a dilemma regarding pricing the value of DeFi. In a very recent interview, Hoskinson also said that according to him, DeFi is definitely in a bubble that has been around for a long time. DeFi and NFTs are the latest additions.

Charles Hoskinson also compared DeFi to the 2017’s ICO revolution, also known as Initial Coin Offering. The most important thing to notice here, perhaps, is that the exec immediately clarified his stance on Cardano by saying that the bubble which is surrounding DeFi does not necessarily mean that it is a bad situation. He also gave a very good example to explain that. He said that a lot of new startups do not have a very massive research and development team; also, they do not have much liquidity, but they still show the world their worth and earn billions of US dollars.

After seeing the potential of the DeFi space, financial institutions and banks have also jumped on the bandwagon and are getting huge stakes in it. According to some recent statistical analysis, DeFi might be getting a massive amount of investments from institutional investors, well upwards of $1 trillion in the upcoming years. That, however, can only happen if the 100 top banks in the world invest at least one percent of their assets into the DeFi space.

A lot of analysts are speculating that this might even happen soon enough, and the future looks very promising for DeFi. Charles Hoskinson said that the first thing for mass DeFi adoption is a Dapp store, and secondly, we need to work on DeFi’s cross-chain.

Leave a Reply

Your email address will not be published.