Veteran crypto investor Arthur Cheong says he has his eye on one potential “dwelling run” play for digital asset markets searching over the following market cycle.
In a brand new interview with crypto podcaster Taiki Maeda, Cheong says that he has his eye locked on the decentralized derivatives buying and selling sector.
Cheong, who heads DeFiance Capital, says the sector is the most important in all of crypto and is producing huge quantities of income for the house beneath the radar.
In response to the investor, decentralized derivatives buying and selling might simply develop 5 to 10 occasions, even when its quantity doesn’t get any larger.
“We’re most bullish on decentralized derivatives. Once you take a look at all of the numbers, it factors on the derivatives buying and selling sector as the most important market in crypto. I feel the annual income generated by derivatives buying and selling within the house might be $10 to $15 billion in present market situations.
If we return to the bull market, I feel we’re taking a look at $20 to $30 billion, simply from derivatives buying and selling alone. So proper now, the decentralized derivatives platforms solely can do 2 to five% of the market share.
I feel that is poised to develop considerably over the following few years. I feel we should always at the very least get to twenty% within the subsequent two years.
So which means even assuming the full crypto derivatives buying and selling quantity doesn’t develop, the decentralized platforms will nonetheless see a progress of 5 to 10 occasions, simply because they’re going to acquire and improve their market share from all the market. So I feel that is additionally the place the ‘dwelling run’ could be.
That’s one among our highest conviction investments going into the following few years.”
Earlier this month, Cheong stated that the decentralized derivatives buying and selling platform dYdX was a part of the explanation he was bullish on the Cosmos (ATOM) ecosystem.
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