DeFi is still in its infancy, but its growth is overstated, according to JPMorgan
In its latest research note, banking giant JPMorgan states that the decentralized finance sector has plenty of room for growth.
Chief analyst Nikolaos Panigirtzoglou writes that the sector is still in its infancy:
There is little doubt that DeFi is still at early stages and thus has a lot of potential to grow over time.
Panigirtzoglou notes, however, that he has to overcome regulatory hurdles.
Moreover, he says that the growth of the sector, while impressive, tends to be exaggerated.
According to DeFi Pulse, the amount of value locked in various protocols stands at $ 111 billion, down from around $ 13 billion a year ago. Ethereum accounts for 70% of the DeFi market, according to the report.
MicroStrategy CEO Michael Saylor recently drew attention to the risks DeFi takes in arguing that Bitcoin is the only investment grade asset.
U.S. Securities and Exchange Commissioner Caroline Crenshaw stressed the need for creating a robust regulatory framework for DeFi, which she claims lacks transparency.
As reported by U.Today, the SEC has reportedly started investigating Uniswap, one of the major decentralized exchanges.
