DeFi
DeFi is more exciting than the markets think
In a conversation with crypto.news, Curve founder Michael Egorov said that the Defi ecosystem still holds the greatest value proposition compared to speculative trends like memecoins.
During the 2021 peak, sometimes called “crypto summer,” decentralized finance took over. Defi tokens reached all-time highs and the discourse revolved around the so-called “future of finance” thesis.
Fast forward to this year’s cycle, memecoins have claims The cryptocurrency market has taken center stage and has accumulated billions of dollars in market capitalization across multiple tokens. The hyper-speculative sector has turned users into overnight millionaires and wealthy, sometimes burned investors.
The buzz has fueled discussions that memecoins represent a major use case for cryptocurrency as the preferred integration rail for retail money over DeFi. Egorov countered with a different perspective and said that DeFi deserves more attention than it gets.
“I totally disagree that innovation is not happening in DeFi. It is! The market just doesn’t recognize it enough. Take Pendle, which deals with interest rate markets, or Ethena, a stablecoin that leverages Ethereum shorts and staking – both are great examples of continuous innovation,” Egorov told crypto.news.
RWA on DeFi chains
Defi ecosystems, particularly Ethereum (ETH), have been presented as poles of choice for the improvement of existing financial instruments, such as bonds, stocks, stocks and real estate.
This concept, known as real-world asset tokenization, represents a $7.3 billion market. predict The RWA crypto industry could reach $16 trillion by 2030 and $30 trillion by 2034.
Egorov said Ethereum and the broader Web3 economy could potentially operate at full capacity. tokenized The RWA ecosystem. However, according to Curve’s founder, regulatory and compliance requirements have so far held back progress.
Egorov noted that the situation could improve significantly when RWA tokens are not simply created on-chain and arbitrated with real markets.
“This would likely allow these RWAs to be used in more permissionless products, expanding their integration within the DeFi ecosystem,” the Curve founder added.
TradFi is in ruins:
Standard Chartered expects the RWA tokenization market to reach $30 trillion by 2034.
Today, only $13.2 billion of RWA is tokenized. That’s a crazy 227,279% growth over the next decade.
In contrast, the total market capitalization of cryptocurrencies is US$2.5 trillion.
Private credit is the most important… pic.twitter.com/sHSrjcUebW
— Ignas | DeFi (@DefiIgnas) July 26, 2024
Solving Web2 Gaps and TON Opportunities
In the exclusive interview with crypto.news, Egorov also said that decentralized technology solves Web2 vulnerabilities and the industry needs to move towards more on-chain solutions for hosting services.
The comments responded to compromised domains resulting from a Squarespace registrar issue. Protocols like Celer Network and Compound Finance were impactedand nearly a dozen other platforms have also been listed as potential targets.
“The real deciding factor would be native support for ENS and similar decentralized DNS services by major browsers. And yes, decentralized hosting would be a very good addition. It would eliminate most of the problems of Web2,” Egorov explained in an interview with crypto.news.
Regarding Telegram and its growing status as a crypto powerhouse due to The Open Network, Egorov said that TONNE has unlocked a new set of users who have just discovered the DeFi application. Despite the difficulty of building dapps on TON, Curve’s founder said the blockchain presents an opportunity for native DeFi development and support for Ethereum virtual machines.
Egorov said he believes “DeFi applications have a very good chance of gaining traction in the TON ecosystem as soon as they can be fully launched (which I hear could be very soon).”
Mini-games to win by tapping on them like Notcoin and Hamster Kombat already exist attracted millions of daily users, active wallets and airdrop hunters in the TON ecosystem.
Egorov declined to answer questions about his infamous CRV loan and its possible liquidation.