Expectations are high as decentralized finance, or DeFi, projects are predicted to escalate in a wave of resurgence towards the end of this year or early next year, according to Boris Revsin, managing partner of Tribe Capital. The flourishing DeFi scene of summer 2020 reached a high of $248.84 billion; yet, fast forward two years and the chill of a crypto winter, accentuated by a series of industry-rocking scandals and hacks, altered the perspective. Tribe Capital, an investment firm with over $1.6 billion in assets under management, shines a confident light on the situation; focusing on generating new projects through development of more infrastructure in open markets outside the U.S.
Revsin holds an intriguing vision of DeFi regulation in the U.S., stating that it could be the catalyst for DeFi projects to move operations into open zones such as Dubai and Singapore. Infrastructure projects, such as layer 1 and layer 2 blockchains and rollup technology, are expected to still have a positive trajectory in the U.S. marketplace.
There is a spotlight on new infrastructure and its masterminds— the developers which are deemed are the keys to evolve crypto into a $10 trillion industry. The current state of the global cryptocurrency market is holding a capitalization of approximately $1.22 trillion.
When delving into Revsin’s portfolio, we see that his journey in the crypto industry started with a humble immigration story from Russia. His varied experiences lead him to co-found multiple successful tech-based companies, eventually paving the way for him to head the new Republic Capital arm after a purchase by Republic.
A desire for a larger brand led him to Tribe Capital, where he now oversees the $69 million early-stage Tribe Crypto Fund I, about $400 million in equity investments, and early-stage incubation projects. Tribe Capital’s approach relies heavily on quantitative data; for potential investments, startups are required to submit extensive data which is then processed for an in-depth investor report. This data-centric approach to startup evaluations certainly sets the pace for investments, with funds ranging from as little as $500,000 to a bolder $5 to $7 million per investment.
But what’s the main driving force boosting the confidence in this comeback? It could well come down to one thing – the developers. According to Revsin, Tribe is most interested in investing in products and protocols that are sewn into the developer stack. The potential lies in the increased developer tools, which in-turn lead to a wider range of projects and prospects for more Web2 users migrating to Web3. Developer usage yields a revenue stream for infrastructure projects, who, in turn, can improve their products, leading to even more developers entering the space. Revsin predicts that this cycle could well carve out the path to the much-anticipated $10 trillion crypto industry.
In bearing witness to the past, Revsin strongly believes that this new wave of change will robustly help in repositioning DeFi as a forerunner in the crypto industry once again.
Source: Coindesk
