According to ChainCatcher, Steno Research’s latest report shows that although the total locked value (TVL) of the current crypto ecosystem is still lower than its 2021 peak, it is expected to climb to a record high in the first half of next year.

DeFi’s recovery is closely tied to U.S. interest rates, as they determine whether investors tend to seek out riskier opportunities in the decentralized finance market.

In addition, the increase in stablecoin supply, the growth of real-world assets (RWA), and the reduction in Ethereum network fees are key factors driving the recovery of the DeFi market.