Binance CEO Changpeng “CZ” Zhao predicts that decentralized finance (DeFi) has the potential to surpass centralized finance (CeFi) in the next bull run.
During a Sept. 1 live X Spaces (formerly Twitter Spaces), titled CZ AMA, CZ shared his thoughts on the future of DeFi. “I think the more decentralized the industry becomes, the better,” he declares, adding that it might not be long before it takes the top spot:
“Defi is the future, the volume is somewhere between 5% to 10% of CeFi volumes, which is not small right […] the next bull run may very well make DeFi bigger than CeFi.“
— CZ Binance (@cz_binance) September 1, 2023
On June 9, Cointelegraph reported that following the United States Securities and Exchange Commission (SEC) legal action against centralized exchanges Coinbase and Binance, the median trading volume on the top three decentralized exchanges (DEX) surged by 444% within a 48-hour span. At the time of publication, the 24-hour trading volume on DEX’s is $722,776,226.
CZ also shared his perspective on the recent dismissal of the lawsuit against the decentralized protocol Uniswap. “The Uniswap thing was extremely positive, extremely reasonable and logical and clear. That is very good,“ he declared.
On Aug. 30, a US federal court dismissed a class action lawsuit against Uniswap, and its CEO, foundation and venture capital backers, brought by plaintiffs who claimed they lost money due to scam tokens on the decentralized cryptocurrency exchange.
The judge rejected the case because neither side could identify the scammers. Instead of suing the scammers for illegal solicitation, the plaintiffs were suing the defendants for what they said on social media.
During the Spaces, someone recalled the judge’s decision that developers cannot be liable for misuse of their platform which the user believes is positive news for DeFi builders in the industry. CZ agreed and was quick again to praise the ruling.
“Developers writing code, that code is free speech. So the development is really good,“ CZ stated.
He also talked about how cryptocurrency should be used by every country, with some needing it more urgently than others.
“Every country needs crypto, some countries need it more urgently than others. Developed countries there may be less of a need, but ten they are letting the other guys catch up. So if they want to maintain the lead in terms of financial innovation, then they’ll need to adopt it.”