Things have not been going well for the cryptocurrency market this year and things have only gotten worse in the last two months. Most of the cryptocurrencies in the market seem to be in a freefall and there are no signs of it stopping anytime soon. Nonetheless, there are still some stakeholders out there who believe that the crypto space, along with the decentralized finance (DeFi) ecosystem will be able to bounce back.
CZ champions DeFi
One of these people who believe crypto and DeFi are going to pull through is none other than Changpeng Zhao (CZ), the chief executive of the Binance crypto exchange. He is of the opinion that both DeFi and crypto have a bright future. Most importantly, the CEO believes that decentralized finance (DeFi) platforms and decentralized exchanges (DEXes) will be able to leave their centralized counterparts in the dust.
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In a recent interview for a YouTube channel, the executive stated that he believes that in the next decade, decentralized blockchain projects would be able to outdo centralized platforms. Zhao also asserted that centralized protocols would also fall in value and their user-base would also shrink, as opposed to their decentralized counterparts.
But, he did add that centralized platforms would also continue to exist, along with decentralized ones, as there are a number of people who prefer to use the conventional method of accessing their accounts.
CeFi will not lose relevance
The CEO of the world’s largest crypto exchange did admit that it would take a long time for centralized platforms to disappear completely and they would continue to exist for decades. He cited the use of emails and passwords that are still widely used by many people for different purposes. Zhao said that just like people prefer emails and passwords over encrypted backups, they would give preference to centralized exchanges over decentralized ones, as the latter might appear to be too complicated.
According to Zhao, the decentralized platforms may come off as complicated right now because they are new. However, he added that people would gradually see the benefits they have to offer and move away from the conventional models.
The executive said that there is a lot of room for improvement in Decentralized Finance (DeFi) technology and it can become user-friendly down the road. This means that decentralized processes would become more usable. Zhao also stated that the best thing about DeFi is that it would grant people more control over their finances and accounts.
Trouble in DeFi
While all of this might turn out to be true later, it is safe to say that the decentralized finance (DeFi) ecosystem is undergoing a lot of turmoil right now. Since the crash of the UST stablecoin and the LUNA token, many lending protocols in the market have been dealing with liquidity issues, which has exposed the risk of these DeFi platforms. This has given rise to a great deal of doubt, but Zhao believes that the market will survive these challenges.
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