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The cryptocurrency market continues to exceed expectations for many investors in the last quarter of 2023. The year we are currently living through has been a quieter one for the DeFi sector compared to most years, but all of this could change very soon. The coming year is already being discussed as a turning point for DeFi, with the potential for positive developments in the crypto market and various trends reaching maturity.
Noteworthy Statements on the DeFi Sector
Julian Deschler, co-founder of the Web3 privacy protocol Elusiv, is among the leaders who are optimistic about the near-term expectations for the DeFi space. The expert shared the following statements for the DeFi ecosystem:
“We are eagerly awaiting the resurgence of constructive growth in the DeFi ecosystem. Projects that have made progress over the past few years and continue to deliver are a sign of real value and scalability. We see 2024 as the year that will catalyze legitimate traction for these projects in DeFi and mark the beginning of long-term mainstream adoption.”
Kain Warwick, founder of the futures market platform Synthetix, also supported these thoughts. Warwick stated in his remarks that 2024 will also signal the end of the bear market. According to the famous figure, an impressive price momentum has already been seen in the last quarter, and it is expected to continue as macro liquidity is resolved throughout the year.
Positive views on the DeFi space are also shared by Sam MacPherson, co-founder of Phoenix Labs and contributor to MakerDAO’s subDAO Spark. According to MacPherson’s analysis, there are strong indications of an emerging bull trend. MacPherson shared in his statement:
“I have been monitoring Maker’s balance sheet for five years, and I haven’t seen such leverage online since 2021. I believe the bull market is starting soon and will definitely take place in 2024.”
The Crypto Market and Legal Regulations
One of the areas likely to witness significant changes is legal regulations. In 2023, the crypto market continued to regularly clash with lawmakers, particularly in the United States. Accordingly, it does not seem likely that the DeFi sector will avoid scrutiny next year.
Nathan Catania, a partner at XReg Consulting, which specializes in public policy and legal regulatory consultancy for the crypto market, said that the real DeFi sector should be much less afraid of central alternatives and provided the following explanations:
“Most DeFi projects have certain central control elements and are actually somewhere on the spectrum between HyFi (hybrid finance), that is, between CeFi (central finance) and DeFi. In 2024, true DeFi will continue to remain outside the regulatory environment because it cannot be regulated under current regulatory paradigms. However, it will be the year when regulators in many jurisdictions, including the US, will apply pressure to HyFi.”
