Bernstein Employees Expect DeFi Profitability to Recover
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Johny Smith
2024/10/11
3 mins read
Recently, analysts from the banking organization Bernstein shared their opinion on the situation in the cryptocurrency market. They are confident that the Fed will lower its key refinancing rate in the next few days. This situation will help restore profitability in the decentralized finance segment. In particular, key cryptocurrencies, including Bitcoin, will also be beneficiaries.
It should be noted that DeFi protocols provide an opportunity for investors to earn income from stablecoins. To do this, holders redirect coins to liquidity pools and earn money. The greatest excitement around this segment was observed in 2020, but after that a steady downward trend formed.
But Bernstein employees believe that easing monetary policy by the Fed could fundamentally change the current situation. On-chain metrics also support this.
It was emphasized that the blocked value in DeFi protocols reached a global minimum in 2022. However, in 2023 there was a local recovery. In parallel with this proposal stablecoin peaked at $178 billion. And for the decentralized finance segment, this is a very positive factor.
At the beginning of this month, decentralized platforms saw a sharp surge in activity, especially on the Starknet network. Experts from DropsTab reported that in just 7 days, trading volume reached $117 million, which is 113% higher than the average. The Injective network also demonstrated good dynamics with a weekly increase of almost 38%. Resilience is also demonstrated Ethereumsince trading volumes of the main altcoin are actively growing within the DEX.
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