A well-known cryptocurrency expert believes that decentralized finance (DeFi) has the ability to destroy the existing banking system.
The presenter of InvestAnswers, Benjamin Cowen, claims that DeFi is still as groundbreaking now as it was in 2020 in a recent conversation on his YouTube channel.
“I am huge into DeFi. I’m a tradFi guy now so I can see the potential. I can see what’s actually happening live, the development of DApps (decentralized applications) that literally revolutionize everything from the payment business to the borrowing, lending, financing, derivatives. Everything is going to move to the chain. Everything will be tokenized.”
According to the analyst, the total value locked in decentralized finance protocols will increase from little under $30 billion in 2020 to $71.59 billion today.
He also believes smart contract platforms Ethereum (ETH) and Solana (SOL) will thrive as DeFi takes over the existing financial system.
“DeFi will be huge. It’s going after a $40 trillion market. That’s why I’m so bullish on things like Ethereum despite its problems and its delays and everything else and Solana.
I think there’ll be room for many later ones to do a whole bunch of stuff that will literally disrupt the traditional banks, the Visas and Mastercards, the borrowers, lenders, the capital markets – you name it. Everything is going to be upset. We just don’t know when a tipping point is going to come.
Even if you look at the transaction volumes on things like Ethereum and Solana today, it is staggering, and you can actually use fundamental traditional valuation models to value things like Ethereum and per those, Ethereum is actually undervalued today.”
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