Veteran crypto investor Arthur Cheong says he has his eye on one potential “residence run” play for digital asset markets looking over the subsequent market cycle.
In a brand new interview with crypto podcaster Taiki Maeda, Cheong says that he has his eye locked on the decentralized derivatives buying and selling sector.
Cheong, who heads DeFiance Capital, says the sector is the largest in all of crypto and is producing huge quantities of income for the area underneath the radar.
In response to the investor, decentralized derivatives buying and selling may simply develop 5 to 10 occasions, even when its quantity doesn’t get any greater.
“We’re most bullish on decentralized derivatives. While you take a look at all of the numbers, it factors on the derivatives buying and selling sector as the largest market in crypto. I believe the annual income generated by derivatives buying and selling within the area might be $10 to $15 billion in present market situations.
If we return to the bull market, I believe we’re $20 to $30 billion, simply from derivatives buying and selling alone. So proper now, the decentralized derivatives platforms solely can do 2 to five% of the market share.
I believe that is poised to develop considerably over the subsequent few years. I believe we should always at the very least get to twenty% within the subsequent two years.
So which means even assuming the entire crypto derivatives buying and selling quantity doesn’t develop, the decentralized platforms will nonetheless see a development of 5 to 10 occasions, simply because they’ll achieve and enhance their market share from your entire market. So I believe that is additionally the place the ‘residence run’ could be.
That’s certainly one of our highest conviction investments going into the subsequent few years.”
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