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.”Â
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.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
