• Two crypto sectors are thriving despite tepid market conditions, according to venture capitalist Arthur Cheong.
• Liquid staking and decentralized derivatives exchanges are worth paying attention to, says Cheong.
• The future of exchanges will be polarized between compliant and decentralized exchanges.
Two Crypto Sectors Thriving Despite Tepid Market Conditions
Venture capitalist Arthur Cheong has highlighted two crypto sectors that are doing well despite current market conditions. According to him, liquid staking and decentralized derivatives exchanges are worth paying attention to for those who want to take a risk now and reap rewards in the future.
Liquid Staking: High Demand Exceeding Supply
Cheong notes that demand for staking Ethereum is vastly exceeding the supply Ethereum can offer as evidenced by the increasing queue times of more than 40 days. He believes that those who pay close attention to this sector will be rewarded in the future.
Decentralized Derivatives Exchange: A $10-15 Billion Annual Revenue Sector
Cheong also highlights decentralized derivatives exchange as another sector with potential for growth even during bear markets. Currently, there is an estimated annual revenue of about $10-15 billion from this sector alone.
The Future Of Crypto Exchanges Polarizing Between Compliant And Decentralized
According to Cheng, the ratio of decentralized exchange volumes relative to centralized exchanges is at an all-time high. He predicts that the future of crypto exchanges will be extremely polarized with compliant crypto exchanges implementing strict rules while on the other hand having decentralized exchange protocols which are impossible to comply with any regulations designed for financial intermediaries based systems.
Conclusion
Overall, it appears that liquid staking and decentralized derivatives exchange sectors could remain lucrative even during bear markets if one pays close attention and takes risks now. In addition, Cheng states that the future of crypto exchanges could become increasingly polarized between compliant and decentralized systems in order to cope with regulations designed for financial intermediaries based systems.