DeFi is coming back strong. The DeFi bull run is coming.
The market share that the DeFi space has taken up relative to the broader crypto ecosystem has been rising. In a market where everyone is vying for attention, DeFi is starting to make a splash again.
The Fed’s first 50 basis point rate cut at the recent September FOMC meeting is a strong signal that a new easing cycle is underway.
1) This easing cycle will inevitably increase liquidity in the system. Liquidity is a key element of financial markets, and excess liquidity is beneficial because it means more funds can enter the market.
2). As traditional risk-free rates fall, investors will begin to seek other yield opportunities. This may lead the market to turn to DeFi, which offers a wide range of attractive yields on stablecoins and other more exotic strategies.
Current monetary conditions also support the recovery of DeFi. This is similar to the situation in the last DeFi summer, and current DeFi indicators suggest that we may be at the beginning of a larger upward trend.
