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Veteran crypto investor Arthur Cheong says he has his eye on one potential \u201chome run\u201d play for digital asset markets looking out over the next market cycle.<\/p>\n
In a new interview with crypto podcaster Taiki Maeda, Cheong says that he has his eye locked on the decentralized derivatives trading sector.<\/p>\n
Cheong, who heads DeFiance Capital, says<\/a> the sector is the biggest in all of crypto and is producing massive amounts of revenue for the space under the radar.<\/p>\n According to the investor, decentralized derivatives trading could easily grow five to ten times, even if its volume doesn\u2019t get any bigger.<\/p>\n \u201cWe are most bullish on decentralized derivatives. When you look at all the numbers, it points at the derivatives trading sector as the biggest market in crypto. I think the annual revenue generated by derivatives trading in the space is probably $10 to $15 billion in current market conditions. <\/em><\/p>\n If we go back to the bull market, I think we\u2019re looking at $20 to $30 billion, just from derivatives trading alone. So right now, the decentralized derivatives platforms only can do 2 to 5% of the market share. <\/em><\/p>\n I think this is poised to grow significantly over the next few years. I think we should at least get to 20% in the next two years.\u00a0<\/em><\/p>\n So that means even assuming the total crypto derivatives trading volume doesn\u2019t grow, the decentralized platforms will still see a growth of five to ten times, just because they are going to gain and increase their market share from the entire market. So I think this is also where the \u2018home run\u2019 would be.\u00a0<\/em><\/p>\n That\u2019s one of our highest conviction investments going into the next few years.\u201d<\/em><\/p>\n Earlier this month, Cheong said<\/a> that the decentralized derivatives trading platform dYdX was part of the reason he was bullish on the Cosmos (ATOM<\/a>) ecosystem.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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