DeFi breakthroughs rarely happen in a straight line, according to Tom Schmidt, General Partner at DragonflyVC. YZi Labs posted on X.

Schmidt said ideas can develop for years before enough liquidity, access, and a catalyst combine to push them past a tipping point. He pointed to prediction markets and perpetuals as examples of that pattern and said RWAs may be experiencing a similar phase now.

Schmidt added that capital formation, credit, and bonds could be the next major frontiers. He described them as large markets where years of gradual experimentation could suddenly lead to broader onchain adoption.