The InvestAnswers host thinks that Uniswap could see growth upto three times by 2023.
The question — if the traditional finance markets are worthwhile — only intensified after the emergence of the decentralized finance sector. On paper, both sectors show ample results and returns for their investors. Yet the query regarding the possibility of which sector would be relevant in the future remains unsolved. However, a crypto analyst after a comparison between DeFi, CeFi and TradFi platforms, came up with a conclusion that decentralized finance might have a good time in future.
On 1st August, crypto analyst and host of InvestAnswers YouTube channel – James Mullarney went live on his channel. While addressing his 443K viewers, he wished to see the performance of prominent defi platform Uniswap against two popular stock markets—NYSE and Nasdaq along with the leading centralized crypto exchange Coinbase.
Mullarney said that he evaluates the worth of any entity in the real world on the basis of comparison, so he anticipates comparing Uniswap to traditional finance exchanges. For comparison, he picked up Uniswap, Coinbase, New York Stock Exchange and Nasdaq. More specifically, he pulled up several values like market caps, revenue and market cap along with other different ratios.
InvestAnswers host outlined that Uniswap has approx 6.7 billion USD worth markt cap and 1 billion USD in revenue. This accounts for about double than NYSE within the same metric. However, Coinbase’ ratio of market cap vs revenue was the lowest of 2:1. Crypto Analyst said that Coinbase could be stuck with the problems related to profitability and revenue growth in the upcoming year.
Citing the survival of decentralized exchanges during the recent crypto winter, Mullareny said that Uniswap has potential to triple its value. He said that it might take slightly longer but it is likely to happen. He noted that decentralized exchanges have a bright future.
Host did agree that UNI is trading down by approx 80% from it’s all time high, yet he believes that it could go upto three times from here. While making such predictions, he also took inflation and recession like situations into account.
Uniswap is currently trading at 9.07 USD, after witnessing a growth of approx 13.40% in a day.
Source: https://www.thecoinrepublic.com/2022/08/03/crypto-analyst-optimist-for-ethereum-defi-ecosystem-ahead/