Pantera Capital is one of the leading blockchain-focused investment firms and also considered one of the top-notch institutional buyers of cryptocurrencies. Founded in 2013, its efforts have always been focused on ensuring widespread blockchain adoption and innovation. Pantera Capital has an uninhibited focus on investing in different blockchain technologies it deems promising. It has good experience in both traditional finance and emergent blockchain technology.
Pantera Capital’s opinions about the technology and the market per se also carry a lot of weight in the industry. Recently it said that despite the slump experienced, it believes that DeFi is slated for more growth following its next bull phase. Not just that, in one of the webinars conducted on October 6th, Pantera Capital disclosed that as a part of their Digital Asset Fund strategy, it is looking forward to investing more in DeFi assets compared to the rest of the market.
Joey Krug who is the co-chief Investment Officer at Pantera Capital believes that other finds believe in allocating a majority of their fund proportion to Bitcoin because it is viewed as a store of value. But Pantera Capital has a different angle to it and has decided to place its primary bet on DeFi. He was quoted as:
“And so if you look at portfolio construction, we can see that relative to the market, we’re taking a different bet with the Digital Asset Fund. Most of the market is basically payments and store of value. So things like Bitcoin, Bitcoin Cash, etc. <…> For the most part, we’re much more overweight, smart contract platforms, decentralized finance, open finance, whatever you want to call it is we think that’s where that sort of growth is going to be seen in this bull market.”
There is no doubt that the DeFi space is growing in terms of total value locked, trading volumes as well as user participation. Some time ago we reported the total value locked in DeFi to exceed $10 billion and now it has gone even beyond that. Despite all the held downs, it is still marching forward and registering growths. Although it is true that there have been some shady projects also that have harmed the prospects of DeFi and driven away users, yet the growth has star-struck several users who now look forward to gaining from investing here.
Source: Pantera Capital
Even when we consider the January TVL figures this year it was lying low near the $2 billion marks. In a matter of a few months, the growths registered have been mind-boggling. The growth is surely the result of people’s belief in the system that began to pick after some good projects dominated the space.
The CIO of Pantera further noted that this growth is surely something to take note of. In fact, in the webinar, it clearly mentioned that the firm believes DeFi is the future of finance and not just another bubble.
Pantera CEO opined that more fiat in the economy has pushed the crypto prices up which has doubled its hope for a stronger rally.
“We think the next two or three years [there’s] going to be a massive rally.”