From a 2018 low point, of just over $100 billion total market capitalization over the weekend, cryptocurrencies have rebounded nearly 14% to Tuesday's highs. Image: iStock
Image: iStock

DeFi is more likely to grow 100X over the next five years than bitcoin, according to Dan Morehead, CEO and founder at investment firm Pantera Capital.

In a recent YouTube interview with Cointelegraph, Morehead said Pantera’s altcoin funds performed poorly in 2019, but the situation has changed significantly in the last few months thanks to the explosive growth of decentralized finance protocols and tokens. 

YouTube video

At the end of August, Pantera’s digital assets fund was up 123% year to date. “The world has woken up to DeFi and capital has flowed into the space,” he said. 

Bitcoin has already established itself as digital gold and a viable store of wealth, making its upside potential somewhat limited, at least by crypto standards.

“It maybe could go to a million […] but that’s really the edge of possibility because you’re getting into a number that’s $20 trillion in all money on Earth is only $100 trillion.” 

DeFi, on the other hand, is still at an embryonic stage and is largely undervalued considering its potential to disrupt the traditional financial sector – hence its massive appreciation potential.

Morehead said, “It’s much more likely that the entire DeFi space goes up a 100x over the next five years than Bitcoin.”