AllianceDAO co-founder Qiao Wang has highlighted the growth potential of DeFi projects that integrate with traditional financial (TradFi) assets. In a recent post on X, Wang stated that protocols facilitating trading or lending with TradFi assets as collateral could surpass those focused solely on crypto-native assets. He emphasized that incorporating these assets could mitigate the reflexive cycles in crypto markets, where price drops lead to deteriorating fundamentals. Wang noted that regulatory challenges have been a major barrier, but current trends indicate a shift in this landscape.