Venture capital firm Pantera Capital is making huge gains to its investors after the incredible rises in DeFi.
According to the company’s CEO and co-investment officer Dan Morehead and other co-investment officer Joey Krug, the Pantera Digital Asset Fund increased by 86 percent as of July 27.
In a recent newsletter sent to investors, executives stated that ICO Funds increased by 60 percent and Bitcoin funds earned 43 percent.
According to Morehead and Krug, the biggest factor in the Digital Asset Fund’s outstanding performance so far is DeFi, which is decentralized finance:
“Pantera Digital Asset Fund opened its doors to the complementary assets of the DeFi ecosystem, which forgot this task of Bitcoin’s“ value retention tool ”as of this year and achieved a great growth”
“We are optimistic for the coming years”
Managers stated that the main reason for the great demand for DeFi is that digital assets can be borrowed and given as loans. However, Morehead and Krug also warned that DeFi protocols should have increased scalability, a better infrastructure and easier fiat money transitions before moving to mainstream adaptation. The two executives also highlighted several projects working on improvements in this regard, such as Matic Network, bloXroute, Starkware, Wyre and Alchemy:
“Looking at the obstacles and progress we have made in this process, we can say that we are optimistic for the coming years”
On the other hand, the company’s ICO Fund also benefited from being an early investor in the DeFi “smart commodity money project” Ampleforth (AMPL).
Despite seeing smaller earnings this year, Pantera’s Bitcoin Fund provided confidence for long-term investors. During its seven-year lifetime, the fund performed better than Bitcoin in the same period, giving a net payout of 15.140 percent.