The decentralized finance (DeFi) industry has been booming throughout this year with some coins recording high bullish gains. Compound’s governance token COMP, Aave protocol’s LEND token, and yearn.finance’s YFI are one of those DeFi coins who showed an outshining performance throughout the year. The DeFi coin YFI even overtook the world’s leading digital currency Bitcoin (BTC) to become the most valuable cryptocurrency in the world.
Looking at this DeFi boom, the founder and Chief Executive Officer (CEO) of the investment firm Pantera Capital Dan Morehead said that the decentralized finance (DeFi) space is likely to grow up to 100x over the course of the next five years than the leading digital currency of the world Bitcoin (BTC).
DeFi may outperform Bitcoin in the next five years
Recently, the CEO of Pantera Capital appeared in an interview where he talked about the performance of the decentralized finance sector and the king cryptocurrency Bitcoin in the next few years. Dan Morehead said that there is likely a chance that the DeFi space may outperform the top-ranked digital currency Bitcoin (BTC) within the duration of the next five years.
Morehead believes that the DeFi sector may grow 100x more than Bitcoin in these years. He stated:
“It’s much more likely that the entire DeFi space goes up a 100x over the next five years than Bitcoin.”
Explaining his point of view further in the interview, he said that the largest cryptocurrency has very less potential for the upward movement as compared to the decentralized finance industry as it is already considered as a potential store of value and digital gold. He explained:
“It maybe could go to a million (…) but that’s really the edge of possibility because you’re getting into a number that’s $20 trillion in all money on Earth is only $100 trillion”.
Amid the growing decentralized finance market, the institutional interest in the industry has also been increasing in recent times. This significant increase in the institutional interest may take the DeFi sector to the next level.