• Synthetix (SNX) founder Kain Warwick suggests that the next wave of crypto users could choose DeFi over CeFi.
• Warwick observes that the optimism about what DeFi would be able to deliver in 2021 got ahead of the actual tech, but now the sector has caught up.
• He believes there is a good chance that decentralized options can attract more new users than their centralized counterparts in 2024-2025.
Decentralized Finance Could Attract New Crypto Users
Synthetix (SNX) founder Kain Warwick says there’s a chance that the next wave of people adopting crypto could end up preferring decentralized applications over their traditional centralized counterparts. In a new interview on Real Vision Crypto, Warwick says decentralized finance (DeFi) markets may have gotten a little overheated in 2021 as investors became overly optimistic about what the sector could achieve.
Current State of Decentralized Finance
Today, however, Warwick says that DeFi has mostly caught up to market participants’ expectations with a slew of developments and ecosystem growth. “We’re a couple of years into [a bear market], and I think the reality is that the optimism about what DeFi would be able to deliver got ahead of the actual tech, and it’s taken us a couple of years to catch up. And so I think if you look over the last six months, a lot of different DeFi protocols that were around in 2017-2018, have gotten to this point where I think that they are actually competitive with their CeFi (centralized finance) competitors, which has just not been a thing that we could really claim historically.”
Attraction Towards Decentralized Options
With the industry and technology in better shape than in the previous market cycle, Warwick says there is now a decent chance that decentralized options can attract more new users than their centralized alternatives. “So the next step in my mind, we’ve got a bunch of people in crypto that are still here, and being able to credibly capture that audience to within DeFi and get them off centralized exchanges, is the first step. If we can do that, then the next wave of people that come in, whenever that happens, 2024-2025, I think we’ve got a decent chance of not having them get siphoned off into frauds and Ponzi schemes and things like that. We can actually keep them in DeFi where it’s ideally much safer and the transparency is there.”
DeFI vs CeFI
Warwick’s remarks underscore an ongoing debate between advocates for traditional financial services versus those who prefer digital assets such as cryptocurrencies for their financial activities. While many argue traditional finance offers greater security while also providing access to advanced banking facilities such as loans or investments products; others argue cryptocurrencies offer greater privacy benefits along with faster transaction speeds at lower costs when compared with fiat currencies or other legacy payment systems like PayPal or Venmo payments etc.,
Conclusion
In conclusion it appears as though decentralised finance (DeFI) may receive increasing adoption from new entrants into cryptocurrency markets if current trends continue throughout 2020 – 2025 period . This potentially opens up opportunities for developers working on decentralised solutions , who will benefit from increased demand for secure , transparent & private transactions .