Speaking to CNBC, Chuang indicated that the excitement around cryptocurrencies is guided by the demand for generalized financial products that come with democratization hence reaching more people. According to Chuang, the potential growth of cryptocurrencies is the ‘most exciting time’ in technology, mainly due to the decentralized nature that eliminates the need for intermediaries. Chuang’s bullishness on Solana aligns with the view of Sam Bankman-Fried, founder of cryptocurrency exchange FTX. Fried believes that SOL will surge in value, citing the unique underlying technology suggesting it’s competing with Ethereum.
More VC funding for blockchain companies
Based on this potential, Chuang indicated venture capital firms would likely increase their backing of blockchain-centered firms. He believes that the fast crypto growth rate of products such as DeFi means that VC firms will be tracking the space keenly since it is a unique tech product. In this line, our previous report showed that as of December 29, 2021, the total value locked in the DeFi space was $247.48 billion, growing by a whopping 1,222% from the January 1 figure of $18.71 billion. Furthermore, Chuang stated that as more companies continue creating products based on the blockchain, more VCs would shun stereotypes about the sector’s sustainability and pour more money into the space. With 2021 recording significant growth in the crypto space, more VCs showed confidence in the sector backing various companies with a record $30 billion. Additionally, as reported by Finbold, venture capital firm Andreessen Horowitz raised a record $2.2 billion dedicated to funding cryptocurrency investments. According to the fund, the move was guided by the belief that cryptocurrencies are here to stay.
Featured image via UC Davis Development & Alumni Relations
