According to CoinDesk, decentralized finance (DeFi) is experiencing a resurgence, with the total value locked (TVL) in the crypto market expected to reach an all-time high by the first half of next year. Steno Research highlighted that interest rates are the most significant factor influencing DeFi's appeal, particularly in the U.S., where the market is predominantly dollar-centric. Analyst Mads Eberhardt emphasized that interest rates determine whether investors are inclined to seek higher-risk opportunities in decentralized financial markets. The first DeFi summer in 2020 followed Federal Reserve interest-rate cuts in response to the Covid outbreak, illustrating the impact of interest rates on the market's growth. However, interest rates are not the sole driver of DeFi's resurgence. The expansion of stablecoin supply, which has grown by about $40 billion since January, plays a crucial role as stablecoins are fundamental to DeFi protocols. As interest rates decrease, the opportunity cost of holding stablecoins diminishes, making them more attractive and enhancing DeFi's broader appeal. Additionally, the growth of real-world assets (RWAs) such as tokenized stocks, bonds, and commodities is another key factor. The 50% surge in these assets year-to-date indicates strong demand for on-chain financial products like DeFi. Lower fees on the Ethereum network, the most widely used blockchain for DeFi, also contribute to making decentralized finance more accessible. The report underscores that these factors collectively support the potential for DeFi to achieve new heights in the coming year.