⚡The Trillion Dollar DeFi Opportunity
Why I'm in DeFi
How DeFi Gets to $1 Trillion
DeFi is a trillion dollar industry that doesn’t know it yet.
Over the past 4 years, the Total Value Locked (TVL) in DeFi has grown from under $1B to over $100B. DeFi is closer to having over $1 Trillion in TVL than most people think. Total crypto market cap is around $2.8 Trillion today.
Over the next few years I expect a few things to happen:
The total crypto market cap will grow significantly, surpassing $5 Trillion and approaching $10 Trillion.
More real world assets will be tokenized. Many of those will be deployed into DeFi to earn yield.
A larger percentage of crypto activity will move from CeFi to DeFi, increasing the ratio of total DeFi TVL to total crypto market cap.
As hundreds of billions of dollars enter the DeFi ecosystem, some of that money will flow to businesses servicing the industry:
DEXes and money markets will collect more fees from users
Governance tokens will become more valuable
Media businesses will see more traffic
With that sort of money moving around, companies ranging from infrastructure to education will benefit. This is why I’ve chosen to focus on DeFi for my own content and educational materials.
Timing is Everything
But can it be this easy? Yes and no.
Yes, when a high growth industry with network effects takes off, assets related to that industry can become exponentially more valuable. No, the timing has to be right.
Take the example of domain names…
After the Internet boomed, people were literally selling domain names they had bought for $20 for millions. Millionaires were made by buying domain names in the mid-90s and then reselling during the Dot-Com Bubble. For people that correctly predicted the Internet would take off and made the correct bet on that trend, it really was that easy.
Here’s a more recent example: E-commerce.
In a previous life, I worked in corporate finance at a consumer packaged goods company. In 2017 as the e-commerce boom was in full swing, a coworker and friend approached me to tell me that he was thinking about quitting his job to start a direct-to-consumer beverage brand.
He had done countless research, read all the industry reports, and decided that e-commerce for food, specifically for nootropic coffee, was poised to boom.
My friend ended up going for it. He quit his job, moved in with his parents, and spent 16 hours a day designing the product and testing Instagram ads.
He spent a few years grinding, growing steadily. Then Covid hit, everyone stuck at home started ordering things online, and his business exploded. Last I heard, his company was making $18 Million in revenue a year.
An inspiring story of entrepreneurship. And it wouldn’t have been possible if my friend hadn’t put countless hours into creating a high-quality product, building a marketing funnel, and managing logistics.
But he also benefited from hopping on a trend at the right time. 10 years earlier and the market wouldn’t have been ready. 10 years later and the space would have been too saturated.
It’s the same thing for DeFi today:
The Blackrock CEO is openly talking about tokenizing equities and bonds
Improved scaling solutions are allowing novel financial applications like Parcl to be built on-chain
Assets deposited into DeFi applications are up over 100X in 4 years
As more finance moves on-chain and DeFi grows into a trillion dollar industry, there will be incredible opportunities for those that time things right.
But time is running out.
Many tokens have already 10Xed off the bottom.
Institutions are getting in.
Regulation is coming.
Bitcoin is no longer early. DeFi is still early, but not for long.
The bull market is already here. People have spent the past 2 years learning and getting positioned. It’s still possible to get up-to-speed, but time is of the essence.
Take Advantage of the DeFi Boom
If you want to take advantage of the coming DeFi boom, you can get up-to-speed fast with a 1-month intensive course I’m helping to teach known as Double Your DeFi.
This is an intensive, five-week course designed to systematically teach you everything you need for the bull market.
Double Your DeFi includes:
Live modules with case studies and frameworks systematize your crypto learning
Live research sessions
Office hours
A community to learn together
Bonus pre-recorded content and materials
This course condenses years of learning into one intense month to help students get prepared for the bull market quickly. It is built on several key principles:
Live case studies - Live case studies help to condense years of market lessons into a short time period.
Show don’t tell - This course is highly hands-on, involving live examples, recent case studies, and assignments you can do on your own time to solidify the learnings.
Developing systems - A huge part of Double Your DeFi is about developing systems so that you no longer have to guess. How do you source ideas for new cryptos? How do you analyze cryptos before buying? How do you manage your portfolio and take profits? This course teaches you frameworks to manage all of that.
This is the fourth AND FINAL time we’re going to run this course. Space is limited and we are on track to sell out by Friday.
If this sounds like something that might interest you, you can read all of the course details at https://go.doubleyourdefi.com/.
Until next time,
Patrick Scott
Dynamo DeFi