Successful crypto-focused venture capitalist Arthur Cheong is making some bullish predictions for Ethereum and the decentralized finance (DeFi) sector for the rest of 2021.
Cheong, who leads crypto asset management fund DeFiance Capital, says in a new interview on the Bankless podcast that the next step for DeFi involves growing the user base and getting more products into the hands of mainstream users.
He predicts that by the end of the year, the number of DeFi users could multiply between five and 10 times, pending scaling solutions.
“I think it’s really about scaling. I think we have seen the success of Polygon and Binance Smart Chain. I think more scaling solutions will just help Ethereum to scale and more DeFi apps to be able to onboard more users as well. I think the DeFi protocols on Ethereum… definitely have crossed 1 million users over time.
I’m looking forward to this crossing 5 million and 10 million probably by the end of the year. I think it’s possible if we have a very successful scaling solution and just more and more users starting to use DeFi applications.”
Cheong predicts there will be $80 – $100 billion in total value locked (TVL) in DeFi protocols (excluding Binance Smart Chain) by the end of the year. The current TVL in DeFi protocols stands at $56.31 billion, at time of writing, according to DeFi Pulse.
Cheong says at the end of 2021, Ethereum (ETH) will probably be trading somewhere between $5,000 and $10,000. He also names DeFi protocols SushiSwap (SUSHI), Aave and Compound (COMP) as projects that he sees as the most undervalued in the emerging crypto sector.
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The post 10X User Growth in Sight by 2022 for Emerging Crypto Sector, Says Venture Capital Head appeared first on The Daily Hodl.
