Scott Melker: DeFi’s are going nowhere


There is no doubt that the rise of decentralized finance (DeFi) has been impressive. However, for a community such as the crypto-currency community, increases in capitalization such as that experienced by the DeFi are not new. And for many, it is nothing more than an illusion that will fade away. This is not the position of Scott Melker, the famous crypto analyst who comments in the day’s Tweet that the DeFi will not go anywhere:

Binance touches the sky thanks to DeFi

The DeFi for Scott Melker
To a person outside the crypto community, what you experienced in the DeFi market may seem like a unique event. It’s not every day that several financial assets multiply their value several times within three months. However, for crypto-currency users, sudden price changes like these are commonplace.

In fact, for a large part of the community, the boom in decentralized finance would only be a repeat of what happened in 2017. When the fever for Initial Coin Offerings led to this sector also multiplying its size dozens of times in a matter of months. Before collapsing due to the existence of more fraudulent projects than legitimate ones.

However, this is not the position of the world’s leading crypto influencers. For figures like Changpeng Zhao or Scott Melker, the DeFi are the future of international finance. Which explains Scott Melker’s tweet today, when it was reported that StakeHound, a DeFi project, would free up $20 billion in liquidity for the Radix ecosystem.

„The DeFi will go nowhere, the cream will rise to the top and the money will keep coming in. 20 BILLION in liquidity is no joke.

Thus, for Melker the main guarantee of success for Crypto Cash projects would be the amount of capital that investors are putting into the sector. And although we must remain alert to a possible collapse of poorly structured projects. Without a doubt, the entry of investors is an important indicator.