Multi-Billion Dollar Investment Management Firm cashes out from Stocks to invest in Defi

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Dawn Fitzpatrick, CEO, and CIO of the $27 billion Soros Fund Management announced that the investment management giant has been liquidating the $5 billion it had invested in March 2020 during the Covid-19 triggered market instability. Furthermore, Fitzpatrick noted that the company will be redirecting its investment into Decentralized Finance.

Defi Dominance over the “mainstream” Bitcoin

Soros CEO and CIO confirmed that the company owns a small portion of crypto in their portfolio. However, Fitzpatrick claimed Defi’s dominance over “mainstream” crypto, stating that coins have become less interesting as compared to the use cases of Defi.

“We own some coins — not a lot — but the coins themselves are less interesting than the use cases of Defi and things like that,” she told Bloomberg, noting that “cryptocurrencies have gone mainstream.”

Chainalysis report confirms Defi growth

The latest virtual currency adoption report by blockchain-based analysis firm, Chainalysis also noted exceptional Defi growth in the span of merely one year. The report stated that the Central and Southern Asia and Oceania (CSAO) region has seen the most cryptocurrency usage with Vietnam, India, and Pakistan topping the charts, according to the Global Crypto Adoption Index.

Image Source: Chainalysis

However, among several crypto activities, Defi took charge with skyrocketed Defi’s activity as a share of all transaction volume beginning from May 2020, and further-reaching above 50% by February. This activity has primarily been driven by Uniswap, Instadapp, and dydx, with significant activity on Compound, Curve, AAVE, and 1inch as well.

Image Source: Chainalysis

Defi Hacks

The rise of the Defi sphere comes with the unwelcoming Defi hacks trend. The Defi hack trend has taken the better of the blockchain system with protocols like CREAM Finance, PolyNetwork, Neko Network, the DEX protocol – NowSwap, pNetwork, and the latest hack of StakeSteak suffering exploits with attackers finding loopholes in the system. While Defi enables accountability through advanced smart contract technology for blockchain and further makes regulatory approval more approachable, but Defi hacks are currently the biggest threat to its potential growth.

 

 

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