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<p>In a recent AskMeEverything session on “X Spaces,” <a href="https://cryptoticker.io/en/binance-nft-ends-polygon-support-and-sandbox-staking/">Binance</a> CEO Changpeng “CZ” Zhao illuminated the potential growth trajectory of decentralized finance (DeFi) over centralized finance (CeFi).</p> 
<figure class="wp-block-image size-large">
 <img loading="lazy" width="630" height="330" src="https://cryptocdn.fra1.cdn.digitaloceanspaces.com/sites/8/bi.jpeg" alt="Breaking: Binance blocked US customers from trading" class="wp-image-57114">
</figure> 
<h3 id="h-key-highlights-from-cz-s-talk"><strong>Key Highlights from CZ’s Talk:</strong></h3> 
<ul>
 <li><strong>DeFi’s Current Volume</strong>: <a href="https://cryptoticker.io/en/ethereum-staking-defi-asset-decline/">DeFi</a>‘s trading volume, although only between 5-10% of CeFi, is significant. CZ believes this gap could diminish during the upcoming bull run, allowing DeFi to surpass CeFi.</li>
 <li><strong>Response to US SEC Lawsuits</strong>: The trading volume of three primary decentralized exchanges (DEX) skyrocketed by 444% within two days following the SEC’s legal actions against Coinbase and Binance. As of now, DEXs are boasting a 24-hour trading volume close to $723 million.</li>
 <li><strong>Opinions on Uniswap Case Dismissal</strong>: CZ praised the recent verdict on Uniswap’s legal issue. A U.S. court threw out a class-action suit against Uniswap due to a lack of clarity in legislation. The decision highlighted the challenges in holding developers accountable for a DeFi platform’s misuse, a stance CZ agrees with, equating code-writing to “freedom of expression.”</li>
</ul> 
<h3 id="h-venture-capitalists-shift-focus-to-defi"><strong>Venture Capitalists Shift Focus to DeFi</strong>:</h3> 
<p>A discernible trend is emerging with venture capitalists pivoting their investments towards DeFi. According to CoinGecko:</p> 
<ul>
 <li>In 2022, investments in DeFi reached a staggering $2.7 billion, a surge of 190% from the preceding year.</li>
 <li>Conversely, funds funneled into CeFi projects plummeted by 73%, settling at $4.3 billion.</li>
</ul> 
<p>This shift underscores <a href="https://cryptoticker.io/en/aerodrome-finance-launch-base-network/">DeFi</a>‘s potential as the next pivotal point in cryptocurrency evolution, with CeFi possibly reaching its saturation.</p> 
<h3 id="h-the-defi-landscape-a-synopsis"><strong>The DeFi Landscape: A Synopsis</strong>:</h3> 
<p>The past week was a roller coaster for the DeFi sector. From the CFTC probing multiple DeFi protocols to CZ’s bullish forecast for DeFi’s future, the industry has seen it all.</p> 
<p>Despite CZ’s optimistic outlook, a report from the Bank for International Settlements (BIS) presents a counter-narrative, asserting that a standalone DeFi system may not be sustainable in the long run.</p> 
<h3 id="h-in-conclusion"><strong>In Conclusion</strong>:</h3> 
<p>CZ’s bullish prediction for DeFi’s growth, coupled with shifting investment patterns, paints a hopeful picture for DeFi’s future. However, challenges remain. As the industry continues to evolve, its ability to effectively navigate regulatory waters will be crucial.</p>

CZ Binance Predicts DeFi’s Domination Over CeFi in Next Bull Run

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