In January, we witnessed a watershed moment with the approval of spot bitcoin ETFs,
Reignited hopes for another DeFi summer, reminiscent of 2020
Some thoughts for a journey less than 20days to Halving
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So what's driving this DeFi renaissance? 3 factors:
• Institutional FOMO - With the crypto bull back, tradfi giants like BlackRock are piling in, tokenizing assets & fueling demand
• Bitcoin ETFs BTC spot ETFs have opened the floodgates, letting retail & institutional $ pour into crypto
• High Risk Appetite - After a desert 2022, speculative capital is fevered to capitalize on DeFi's wildly lush pastures
Let's dive in
Now, with DeFi yields overtaking those of traditional investment avenues, such as U.S. Treasuries, the anticipation for another DeFi summer is palpable among enthusiasts and investors alike.
The recent DeFi yield surge is highlighted by platforms like MakerDAO, offering a 15% yield on its DAI Savings Rate, and Ethena Labs, where riskier ventures can earn investors up to 27%.
These figures starkly contrast with the relatively stagnant yields found in TradeFi, signaling a potential shift in investor preference towards the high-octane world of DeFi.
