First Mover: Kyber CEO Predicts 2020 Transactions at $3B as DeFi Token Soars

The fast-growing realm of decentralized finance, known as DeFi, has produced some of the year’s richest returns for cryptocurrency investors, from Compound’s COMP tokens to Chainlink’s LINK.

So it may come as little surprise that the Kyber Network’s KNC token has jumped eight-fold in price this year, giving it the largest market capitalization among decentralized exchanges tracked by the data firm Messari.

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First Mover interviewed Kyber CEO Loi Luu about the project, including its July 7 launch of the KyberDAO governance platform. Luu says some 30% of the circulating supply of KNC tokens are staked on the platform, which he argues is evidence that “holders want to get behind it.”

First Mover: How would you explain Kyber to the uninitiated?

The short version is to say it’s a liquidity protocol for anybody, anywhere. The longer version of it is we’re building an on-chain liquidity endpoint in which contributors integrate to either contribute liquidity or utilize liquidity.
      
So why has the KNC token done so well this year?

People look at the growth of Kyber, and people look at the ecosystem that we’re building. I think so far we have one of the biggest ecosystems in this space. We have more than 100 different applications, wallets, that have integrated with Kyber. We have surpassed $1 billion of volume in 2020 and we are looking to cross $3 billion before the end of the year. Whether the token can do well or not, it really depends on how the protocol is performing.

fm-aug-7-chart-1-kyber-market-cap
Chart showing growth in KNC’s market capitalization.
Source: CoinGecko

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