• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

DeFi Market Eyes Strong Rebound in 2025

user avatar

by Giorgi Kostiuk

a year ago


  1. What Role Do Interest Rates Play?
  2. What Other Factors Contribute to DeFi’s Growth?
  3. Key Takeaways for Investors

  4. The Decentralized Finance (DeFi) market is anticipated to experience a significant resurgence next year. According to a recent report by Steno Research, the total value locked (TVL) in the DeFi sector may exceed its 2021 peak, potentially setting a new record by the first half of 2025.

    What Role Do Interest Rates Play?

    A major driving force behind this expected revival is the anticipated reduction of interest rates in the United States. Due to the DeFi market’s strong correlation with the US dollar, changes in interest rates have a direct impact on investor interest. Analyst Mads Eberhardt asserts that interest rates are the most crucial factor influencing DeFi’s attractiveness, suggesting that investors might seek higher-yielding, riskier opportunities in the DeFi market as interest rates decline.

    Interest rates were also instrumental during DeFi’s initial boom. The so-called “DeFi summer” of 2020 coincided with the Federal Reserve’s decision to lower rates in response to the Covid-19 pandemic, further highlighting their impact.

    What Other Factors Contribute to DeFi’s Growth?

    However, the resurgence of DeFi isn’t solely dependent on interest rates. Unique cryptocurrency factors also contribute to its rise. The report emphasizes the increased supply of stablecoins, which are essential for DeFi protocols. Stablecoin supply has surged by about $40 billion since the start of the year, and lower interest rates decrease the opportunity cost of holding these stablecoins, making DeFi more attractive.

    Additionally, the growth of real-world assets (RWA) like tokenized stocks, bonds, and commodities is boosting DeFi demand. These assets have grown by 50% since the beginning of the year, demonstrating rising interest in on-chain financial products.

    Key Takeaways for Investors

    Key factors driving DeFi’s resurgence include:

    * US interest rate cuts make DeFi more appealing. * Increasing stablecoin supply boosts DeFi protocol backbone. * Growth in real-world assets strengthens on-chain financial products. * Low Ethereum transaction fees enhance DeFi accessibility.

    In summary, multiple elements are aligning to set the stage for a robust DeFi comeback. With favorable interest rates, rising stablecoin supplies, the proliferation of tokenized assets, and affordable transaction fees on the Ethereum network, the DeFi market appears poised for substantial growth in the coming years.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Significant Event: Block Jack Dorsey Now in S&P 500

chest

Block Jack Dorsey joins S&P 500, highlighting its role in the fintech sector and opening new opportunities for investors.

user avatarGiorgi Kostiuk

Overview of High-Potential Crypto Projects: BlockDAG, SUI, SEI, and Jupiter

chest

Analysis of four high-potential crypto projects for 2025: BlockDAG, SUI, SEI, and Jupiter.

user avatarGiorgi Kostiuk

Block Inc. Enters S&P 500, Bridging Crypto with Traditional Finance

chest

Block Inc. is now part of the S&P 500, enhancing the connection between cryptocurrencies and traditional finance.

user avatarGiorgi Kostiuk

Bullish, the Crypto Exchange Backed by Peter Thiel, Prepares for IPO

chest

Bullish has filed for IPO, seeking to enter the public market and compete with major players.

user avatarGiorgi Kostiuk

USDC Use on Stellar and Its Impact on XLM Value

chest

Statistics show a rise in USDC transactions on Stellar, indicating growing utility that fuels speculation on XLM prices.

user avatarGiorgi Kostiuk

Litecoin Records New Open Interest at $761 Million. Is LTC Heading to $120?

chest

Litecoin has reached a new record open interest of $761 million, and 66.3% of addresses are in profit, raising hopes for a price increase to $120.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.