Decentralized finance (DeFi) is increasingly recognized by traditional finance (TradFi) professionals and journalists as the foundational layer for the future financial system. Currently trading at around $0.5 trillion in market size, DeFi is expected to capture a substantial portion of TradFi's assets under management, which stand at approximately $128 trillion. Industry observers predict that over the next five years, at least $10 trillion in assets—particularly yield products, bonds, and stocks—will transition onchain, driven by the potential to significantly reduce costs and inefficiencies prevalent in TradFi. Experts highlight that TradFi operations are often complex and inefficient, requiring many personnel for tasks that blockchain technology can streamline and automate. This growing acknowledgment by TradFi insiders contrasts with ongoing debates within the crypto community about the value of certain assets like Ethereum. The shift toward blockchain-based financial services is seen as a major structural change that could reshape the financial industry landscape.
over the next 5 years, defi will capture a large portion of TradFi Aum (currently at $128 trillion) I expect at least 10 trillion (esp yield products, bonds stocks) to move onchain as it will massively slash costs for tradfi firms that’s the story. position accordingly https://t.co/ZSlxgOf8xV
over the next 5 years, defi will capture a large portion of TradFi Aum (currently at $128 trillion) I expect at least 10 trillion (esp yield products, bonds stocks) to move onchain as it will massively clash costs for tradfi firms that’s the story. position accordingly https://t.co/ZSlxgOf8xV
Crypto has a tendency to laser-focus on macro events when nothing else is going on If only the mNAV premium charts looked like the S&P500 Hyperliquid