Crypto funding has seen shifting from CeFi to DeFi

Crypto funding has seen shifting from CeFi to DeFi

written by John Murphy | March 6, 2023

One crypto investment secure is closely looking at four investment opportunities in the cryptocurrency space. So, it’s true that crypto funding has seen shifting from CeFi to DeFi. These include NFTfi, an on-chain derivative platform, a decentralized stable coin and Ethereum L2s.

Decentralized finance (Defi) schemes have experienced a significant uplift in funding, with digital asset investment firms pouring $2.7 billion into such projects in 2022, a 190% increase from the previous years. In the meantime, settlement into centralized finance (CeFi) projects cut down 73% to $4.3 billion over a similar retro.

Even though crypto funding dropped from $31.92 billion in 2021 to $ 18.25 billion in 2022, deFi funding figures rose rapidly. According to CoinGecko, this trend could indicate DeFi is the next area of high growth for crypto.

The largest DeFi was Luna Foundation Guard’s (LFG) $1 billion sale of LUNA tokens in February 2022. Ethereum native Uniswap raised $164 million, and Ethereum staking protocol Lido Finance raised $94 million.

On the other hand, FTX and FTX.US were the largest recipients of CeFi findings, raising $800 million in January alone. However, the crypto exchange collapsed ten months later and filed for bankruptcy.

Other areas of investment include blockchain infrastructure and blockchain technology companies. It raises$2.8 billion and $2.7 billion, respectively. This trend has remained strong over the last five years.

Apollo Crypto, an Australian-based asset fund manager, focuses on four specific crypto sectors. So, the first is NFTfi, which combines DeFi and NFTs. In addition, on-chain derivative platforms and decentralized stablecoins. In addition, on-chain derivative platforms and decentralized stablecoins have gained interest due to recent regulatory actions and the FTX collapse. The fourth sector is Ethereum-based layer-2 networks.

Layer-2 tokens such as Optimism have performed well recently, particularly since Coinbase launched its Optimism-powered Base testnet. Crypto space has fallen over the last three consecutive quarters. According to recent data, due to tough market conditions.

However, cryptocurrency analyst Miles Deutscher predicts that zero-knowledge rollup tokens are liquid staking derivative tokens. Now it is cleared that crypto funding has seen shifting from CeFi to DeFi. Artificial intelligence tokens, perpetual DEX tokens, real yield tokens GambleFi tokens, decentralized stablecoin and Chinese coins will perform well in 2023 on the back of heavy findings.