In this weekend Trade To Black PodcastTDR Founder Shadd Dales and Senior Financial Writer Benjamin A. Smith speak with the CEO of Liquid Meta Capital Holdings Ltd. (NEO:LIQD) (OTCMKTS: LIQQF), Jon Wiesblatt. Liquid Meta is a decentralized finance (DeFi) infrastructure and technology company with liquidity mining operations that generate consistent returns through the allocation of deployed capital. As a former portfolio manager in Tier 1 investment firms Ninepoint Partners and Sprott Asset ManagementJon is not just an expert on DeFi, but on the capital markets and economic influences that intertwine with it.
One of the panel’s main talking points is the DeFi bear market, which has seen the total value locked (TVL) drop almost 80% (peak to trough) from the highs of November 2021. Simultaneously with the decline, the annual percentage yield (APY) compressed as the mega-yield halcyon days ended. Jon speaks on the current state of the foamless market and where the DeFi sector is headed from here.
Another topic of discussion revolves around the news that Franklin Templetonone of the largest asset managers in the world with $1.5 trillion in assets under management, has entered the crypto arena.
The company announced this week that beginning in the fourth quarter, it will start offering two digital asset separately managed account (SMA) strategies via Eaglebrook Advisors. The Franklin Templeton Digital Asset Core The strategy is market capitalization weighted and invests in 10-15 of the largest digital assets. As of June 30, the portfolio is weighted in bitcoin (BTC) at 69.25% and in ether (ETH) at 26.15%. Next up is Solana’s SOL at 1.65%, with all other tokens weighted at less than 1%.
As well, CoinDesk reported last week that institutional DeFi is growing at a rapid pace and some research firms claim that this niche sector will attract over $1 trillion in investment capital over the next five years.
So, while the DeFi “hype” meter is currently close to zero, there are signs that DeFi is attracting significant interest from institutions looking for a place to park capital and generate higher returns ( and consistent). Similar to the dot.com bubble or the first two crypto busts, DeFi appears to be going through a similar crisis. But as the dust settles, Mr. Wiesblatt predicts that DeFi (TVL) will come out stronger than before.
Click the embedded link to watch our latest Trade To Black podcast with Liquid Meta Capital Holdings CEO Jon Wiesblatt.
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