Since the beginning of 2020, there has been a parabolic explosion in decentralized finance.
According to CryptoSlate, DeFi Coin's market cap has increased from $ 1 billion, or $ 200 million, to $ 13 billion, due to a combination of trends such as rebate searches and Bitcoin price rebounds.
The value of DeFi apps (instead of coins) will also increase, according to DeFi Pulse, the value of the cryptocurrency edited in decentralized financial apps (such as MakerDAO and Compound) reaches 11 billion. US dollars after exceeding 1 billion USD for the first time this year.
Although this growth has received praise from many critics around the world. But they are all backed by real innovation and interest. But some people don't think DeFi should go on.
Nouriel "Dr. Doom Roubini recently named DeFi an area of" vapoware "and they agreed with Bitcoin maximalists.
Despite its incredible growth, Nouriel Roubini continues to destroy the DeFi area
Nouriel, a renowned economist, known for predicting the financial crisis before "Doom", aversion to Bitcoin and cryptocurrencies. His hair has more than doubled. Recently, the DeFi area took a qualifying measurement and described it as "Scratch wave"
"From the very beginning, DeFi has always been a car, now Blockchain has failed completely because it is the most exaggerated technology in human history."
Roubini has long criticized Bitcoin, although he has opinions about the central bank, and some claim it would make Bitcoin a "good bull".
He was particularly enthusiastic about the audience, altcoins and the "degraded players" he called the "Low-value coin"
Not everyone agrees
Roubini believes DeFi is a space full of waves. But there is a lot of capital and investors coming into this area.
Andreessen Horowitz, one of the world's most prestigious venture capital firms, announced Crypto Fund II in April, which will invest $ 55 million in crypto assets and blockchain-related investments.
One of the strengths of the fund, DeFi a16z, believes that this field is vital to the development of the Internet.
"DeFi is built on the blockchain with the core values of the open internet and offers new financial services such as credit, derivative products, insurance, trading and funding. Which is why open source software is so powerful."
Other institutional investors are trading with DeFi.
Spencer Noon, head of DTC Capital, said the institutional investors he is dealing are interested in DeFi, although many of them are not directly investing in protocols or management tokens. But Noon explained that they bought Ethereum with the following expectations:
"After talking with foreign investors, fund managers, OTC and FO schedules, over the past few weeks I learned about #DeFi, people are approaching, they are interested in DeFi, but buy ETH first because they are a beginner."
They always critizise when something innovative can compete with what already exist on the market.