According to the latest reports, it seems that there is one specific trigger that will kick off the next bull market. Check out the latest reports about all this below.
Defi to start a new bull market
According to the latest reports, it seems that the crypto hedge fund giant Pantera Capital says that one sector of the digital asset space will be the life force of the next bull market cycle.
The same notes reveal the fact that in Pantera’s latest newsletter, chief investment officer (CIO) Joey Krug says that decentralized finance (DeFi) will act as the foundation for the next bull market.
Krug says that 2022, with its many different crypto blow-ups and collapses, was probably the biggest year of upheaval in crypto history.
It’s also been revealed that, on the other hand, the CIO, who helps manage the $6.9 billion fund, says that DeFi managed to stay completely intact during 2022, even if the top protocols saw lower prices.
“What’s interesting to note here, on the other hand, is that decentralized finance protocols, which lent to largely unknown counterparties, didn’t blow up. The reasoning behind why DeFi protocols managed to succeed has a couple of levels to it. The surface level is that these protocols (e.g., Compound, Aave, and Maker) force people to post collateral and enforce aggressive risk controls.”
According to the same reports, Krug says that the code that governs DeFi protocols has proven to be superior to humans who convince their users to trust them based on arbitrary reasoning.
“Decentralized protocols can’t just say, ‘trust me, I went to MIT and want to donate everything to charity’. DeFi protocols are more of a ‘you don’t have to trust us’ nature or, as Google put it so well before they dropped it: DeFi protocols ‘can’t be evil.’
Stay tuned for more revealing news.