Defi will be the basis of the next cycle of Crypto: Pantera Capital
Defi will be the basis of the next cycle of Crypto: Pantera Capital
Pantera Capital-a blockchain-focused institutional asset manager-has published a report in which the state of the blockchain industry in 2022 and the future technological and application-related expectations are checked.
The report predicted that crypto has already reached the valley sole and that the next market cycle is defined by a stronger introduction of decentralized financing (defi).
The era of the defi
According to Joey Krug, Co-Chief Investment Officer (CIO) from Pantera, the crypto industry has been tending since the case of Mt. Gox in 2013 for self-storage and minimizing trust, uniswap and 0x-help to have problems in connection with centralization and mismanagement.
"It seems quite obvious that the historical sheet of the world's financial rails will result in blockchain-based systems that use Smart Contracts," wrote Krug in the test report . He called scaling solutions that enable transaction fees of less than ten cents, paired with the lightness, to write intelligent contract -based systems than drivers for such an introduction.
similar to the crypto market prices, defi The activity decreased significantly in the course of 2022, with Total value blocked (TVL) across all protocols now only $ 47 billion-compared to around $ 180 billion at the end of 2021.
The report from Pantera also reflects a significant decline in risk capital investments in crypto during this time. According to Paul Veradittakit, General Partner of Pantera, the global financing for VC-supported crypto startups from 9.8 billion US dollars in the fourth quarter of 2021 to $ 2.4 billion in the fourth quarter of 2022.
Nevertheless, the defi investments of the money that remained in crypto last year took a share of 42 % of the cake, while the rest in sectors such as games, consumer crypto and development infrastructure.
"We believe that this is an excellent time to found a blockchain area," said Veradittakit. "Talents are better trained and more passionate about the industry than in earlier cycles. A wealth of capital was applied and is waiting for his commitment."
The importance of the fusion
The investment analyst from Pantera, Will Reid, called the Ethereum melting "One of the technically impressive software updates that has ever been carried out." The upgrade, which took place in September, reduced the ETH inflation rate and switched the network to a proof-of-stake consensus mechanism.
nevertheless Ethereum still has many drastic upgrades in front of him, including The Surge, The Scourge, The Verge, The Purge and The Splurges, as they were shaped by the co-founder of the network, Vitalik Buterin. Reid predicted that this upgrades Ethereum will lead to more speed, user -friendliness and decentralization.
"Higher bandwidth, safer and more user-friendly blockchains should enable a similar Cambrian explosion of applications and applications in Web3," he said.
Ethereum is the primary network for defi and is over 50 % of the TVL in the entire industry. .