Last Updated on September 3, 2023 by Bitfinsider

In July of last year, Changpeng Zhao, the CEO of Binance, boldly declared that Decentralised Finance (DeFi) will soon surpass Centralised Finance (CeFi) in terms of importance and visibility in the financial world. From a forward-looking standpoint, he anticipates that this revolutionary change will manifest itself within the next six years.

As evidence of the industry’s and its technology’s legitimacy, Zhao drew attention to the recent increase in institutional interest in cryptocurrencies. He thinks the growth of the cryptocurrency market would be greatly accelerated if even a tiny percentage of the trillions of dollars held by institutional investors in the equity market were invested in digital assets.

Since his first judgement was made two months ago, he has not wavered in his belief that the DeFi space is about to overtake centralised finance in terms of both visibility and significance in the larger financial environment. This statement expresses his unwavering faith in DeFi’s ability to revolutionise society and change the way we view and interact with financial institutions.

During the CZ AMA, a live X Spaces event on September 1, the CEO of Binance shared his opinions about what he thought will happen to DeFi. In addition to expressing his belief that the sector would improve as it becomes more decentralised, he made a suggestion that DeFi might soon surpass CeFi in trade volume.

CZ’s assertion was supported by the industry’s most recent successes. When it comes to spot trading volumes, the largest and most popular decentralised exchange (DEX), Uniswap, performed better than the industry leader Coinbase during the first two quarters of 2023 thanks to its centralization.

DeFiLlama reports that during the last week, the decentralised exchanges have registered a trade volume of about $12 billion. Nearly 18% of the market was accounted for by DEX in terms of spot cryptocurrency trading share.

In the 48 hours that followed the United States Securities and Exchange Commission’s (SEC) June 9 legal action against centralised exchanges Coinbase and Binance, the median trading volume on the top three decentralised exchanges (DEX) reportedly surged by 444%. As of the time of publication, the 24-hour trading volume on DEXs is $722.7 million.

In the meantime, Zhao reiterated the exchange’s dedication to compliance in response to the recent regulatory difficulties it has faced in several nations. Binance is ready to abide by laws, according to Zhao, despite regulatory inquiries and legal measures in nations like Australia, the US, Canada, and Europe.

Apart from predicting that decentralised finance (DeFi) will outperform centralised finance (CeFi) in the upcoming bull market, CZ also expressed the opinion that the adoption of cryptocurrencies should be done everywhere, but at differing rates of urgency depending on the country.