Dan Tapiero, a well-known crypto investor, believes that a significant growth opportunity lies in the future of U.S.-based decentralized finance (DeFi).
In a recent conversation with Real Vision’s Raoul Pal, Tapiero discussed how DeFi, which had been pushed out of the U.S. due to strict regulatory challenges, is poised for a resurgence. He predicts that over the next two years, the sector could see explosive growth as institutions begin to realize its untapped potential.
Tapiero, who has founded several venture capital firms in the crypto space, pointed out that DeFi remains incredibly small compared to traditional financial markets. He emphasized that despite the dominance of centralized exchanges like Kraken and Coinbase, which have made it easier to enter DeFi, the real growth will come when institutions start to explore its possibilities more deeply.
Tapiero believes that once institutions hold major assets like Bitcoin and Ethereum through ETFs, they will gradually recognize the significant potential of decentralized finance beyond simple token trading.
Currently, the total value locked (TVL) in DeFi stands at around $136 billion, a fraction of the $4 trillion in total value across cryptocurrencies and equities. Tapiero suggests that DeFi’s share, which currently represents only about 2% of the broader financial market, is set for substantial expansion. As institutional interest increases, DeFi could become a more integral part of the financial landscape.
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