The decentralized finance (DeFi) market has by no means been in a foul state than now with two large protocols – Terra and Celcius – dealing with main crises inside a month’s time. Some analysts instructed Bloomberg that there are some main existential points inside the DeFi house.
Mahin Gupta, founding father of Liminal, a digital-asset custody platform said: “What is happening with Celsius will have serious repercussions for the industry. It’s a not-insignificant player, and its apparent failure will have ripple effects.”
The latest fragility in the DeFi house is a reminder outsized yields could possibly be someday too good to be true. However, Bitcoin maximalist Michael Saylor believes that Bitcoin can come to the rescue of the DeFi market. Responding to the Bloomberg article on Tuesday, Saylor wrote:
“The sound ethical, economic & technical foundation for DeFi is Bitcoin. The next generation of DeFi will be built using the #Lightning protocol and the BTC token”.
As such, the MicroStrategy CEO has been fairly bullish about Lightning Network, Bitcoin’s Layer 2 scalability answer. Saylor believes that Bitcoin is the future of cash and the Lightning protocol will assist to scale transactions extra effectively. He said:
“If you’re going to do payments and transactions high speed, you’re going to need a base layer that’s ethically sound, economically sound, and technically sound. That’s what Bitcoin is. But then billions and billions of transactions are going to go on a layer 2 like Lightning.”
Bitcoin Could Be Cheaper Than It Looks
Jurrien Timmer, head of Global Macro at Fidelity wrote that Bitcoin could possibly be cheaper than it seems. He provides:
If we contemplate a easy “P/E” metric for BTC to be the worth/community ratio, then that ratio is again to 2017 and 2013 ranges, although BTC itself is barely again to late 2020 ranges. Valuation usually is extra vital than worth.
Just as CoinGape reported, Bitcoin’s retail accumulation has continued regardless of this worth correction.
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