Steno Research: DeFi Summer Confirmed

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. TVL Status and Expectations
  2. Impact of Interest Rates
  3. Factors Driving DeFi Revival


    4. According to a report published today by Steno Research, the decentralized finance (DeFi) sector is poised for a revival, with the total value locked (TVL) in the crypto ecosystem having the potential to reach all-time highs in the first half of 2025.

    TVL Status and Expectations

    Although current TVL levels remain below the 2021 peak, analysts expect a significant revival driven by several key factors.

    Impact of Interest Rates

    The report highlights the impact of US interest rates on the DeFi market, which is largely dollar-centric. “Interest rates are the most critical factor affecting the appeal of DeFi, as they determine whether investors are more inclined to seek higher-risk opportunities in decentralized finance markets,” said Mads Eberhardt, an analyst at Steno Research.

    Interest rates are the most critical factor affecting the appeal of DeFi, as they determine whether investors are more inclined to seek higher-risk opportunities in decentralized finance markets.Mads Eberhardt

    Factors Driving DeFi Revival

    Steno Research draws parallels between the anticipated DeFi revival and the first “DeFi summer” of 2020 after the Federal Reserve lowered interest rates in response to the COVID-19 pandemic. As interest rates fall, the appeal of DeFi increases due to the lower opportunity costs of holding the stablecoins that are necessary for the operation of many DeFi protocols. Beyond interest rates, the report also identifies crypto-specific factors that are driving DeFi’s comeback. Stablecoin supply, which has increased by nearly $40 billion since January 2024, plays a crucial role in the ecosystem. “Stablecoins are the backbone of DeFi protocols,” the report says, emphasizing their importance in the recovery of the sector.

    Stablecoins are the backbone of DeFi protocols.None

    Thus, Steno Research analysts predict that the DeFi sector is set for significant growth in the coming years, especially with falling interest rates and an increase in stablecoin supply.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Ambire Launches Ice Hardware Wallet to Improve Safe Transaction Security

Ambire has launched its Ice hardware wallet, designed to decode Safe transactions and alert users to changes in account control.

user avatarGustavo Mendoza

Bitcoin Core 321 Release Introduces Key Network and Privacy Changes

The Bitcoin Core 321 release brings significant updates to network management, privacy features, and interface adjustments, while earlier versions 312 and 304 focus on maintenance.

user avatarRajesh Kumar

Mercado Bitcoin and Sui Integrate SUI and Stablecoins for Enhanced Financial Services

Mercado Bitcoin and Sui have announced a significant integration that will allow users to access SUI, USDC, and USDsui, facilitating purchases, sales, and transfers.

user avatarMiguel Rodriguez

Polymarket Reports on October 29 Security Incident

Polymarket reports on a security breach that occurred on October 29, 2023, involving a compromised monitoring script, leading to $39 million in refunds.

user avatarLuis Flores

KuCoin Stops Services for Russian and Belarusian Users

KuCoin has announced the discontinuation of all services for users in Russia and Belarus, effective immediately as of October 29, due to legal and regulatory requirements.

user avatarArif Mukhtar

FCA Confirms HTX Has Ceased Operations in the UK

The Financial Conduct Authority (FCA) has confirmed that HTX is no longer active in the UK following a settlement regarding financial promotions.

user avatarMaria Gutierrez

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.