Institutional investors in Asia are more interested in infrastructure projects than in newer segments such as DeFi and GameFi. Researchers at Huobi Research reached this conclusion, after surveying more than 20 companies.
“We found that most large investors mainly prefer to explore rather than act,” the experts noted.
In Huobi Research, it was noted that institutional investors are most closely watching infrastructure projects “with a focus on ZK, new layer-1 networks and cross-platform software.”
“DeFi is the most preferred domain for institutions, while GameFi and social networks remain controversial directions,” the researchers noted.
According to the survey, large companies view ZK solutions as “some of the main potential drivers of the next cycle.” They also largely eschew DeFi platforms, focusing on relatively mature projects with stable cash flows.
Even more skeptical are investors of SocialFi projects, which are still at early development stages. For many of them, the models are unclear and the paradigms unstable.
“If they rely solely on tokenomics and a Web2-era social-media transformation, they will have difficulty attracting users from traditional giants,” the researchers stressed.
Opinions are also mixed on GameFi: some companies believe games can effectively attract additional users, while others consider the business models on offer in the market unsustainable.
Earlier, researchers from the Fed called the DeFi sector a potential threat to financial stability.
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