Head of venture capital expects 10 times user growth for emerging crypto sector by 2022

Arthur Chong, a successful crypto-focused venture capitalist, has some bullish forecasts for Ethereum and the decentralized financial sector (Defi) for the rest of 2021.

Chong, who heads Defi capital’s Crypto Asset Management Fund, said in a new interview on the cashless financing podcast that the next step for Defi involves expanding its user base and offering more products.

 
In anticipation of scaling decisions, Defi estimates that the number of users could increase five to 10 times by the end of the year.

“I think it’s all about scales. I think we’ve seen the success of Polygon and Binance Smart Chain. I think more scaling solutions will help Ethereum scale, and more Defi applications can also attract more users. I think the Defi protocols are in Ethereum … of course, over time they surpassed 1 million users.

I’m probably looking forward to this intersection of 5 million and 10 million by the end of the year. I think this is possible if we have a very successful scaling solution and more users will start using DeFi applications.” 

Chong estimates that the total cost of Defi protocols (excluding the Binance smart chain) by the end of the year will be $ 80-100 billion (TVL). According to Defi Pulse, at the time of writing, the current TVL volume in Defi protocols is $ 56.31 billion.

By the end of 2021, Ethereum (ETH) will be trading decidedly between $ 5000 and $ 10000, Chong says. He also mentions the Defi sushiswap (sushi), AAVE and compounding (Comp) protocols as the projects he sees as least value in the emerging crypto sector.

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