Bernstein says DeFi yields are set for a comeback amid likely US rate cuts https://t.co/vYxSJF20Vv
— The Block (@TheBlock__) September 16, 2024
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Crypto: DeFi Yields Set To Surpass US Money Market Funds
Tue 17 Sep 2024 ▪
3
min read ▪ by
Getting informed
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DeFi returns are set to experience a new ascent. According to Bernstein analysts, this comeback could mark a turning point for crypto investors as well as for decentralized finance.
DeFi returns set to exceed 5% in a context of falling rates
According to Bernstein’s crypto analysts, the crypto market is in a frenzy. They are specifically referring to decentralized finance (DeFi) which could surpass traditional money market funds. With the FED considering lowering its interest rates, DeFi returns could indeed make a spectacular comeback.
Today, returns on platforms like Aave already reach 3.7% to 3.9%. Bernstein’s cryptography experts even foresee the potential to exceed 5%, particularly for stablecoins like USDC and USDT. According to them, these crypto assets could offer more competitive returns than those of traditional dollar-denominated money market funds.
The recovery of DeFi markets could revitalize the prices of crypto assets
DeFi is currently benefiting from a dual momentum.
- On one hand, the anticipated rate cut favors the attractiveness of crypto investments.
- On the other hand, the total value locked (TVL) in DeFi has doubled since the lows of 2022. It now stands at $77 billion.
According to Bernstein, the increase in the number of active monthly DeFi users (which has tripled from its lowest level) shows a gradual return of confidence.
Stablecoins play a key role in this recovery. Their capitalization amounts to $178 billion, a level similar to that observed during previous market rises.
In this phase of DeFi recovery, Aave and Ethereum appear as major players. The Aave crypto token, in particular, has recorded a 23% increase over the past 30 days.
If Bernstein’s predictions are correct, this could trigger a bullish cycle for decentralized finance and digital assets (including cryptocurrencies).
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Je m'appelle Ariela et j'ai 31 ans. J'oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n'ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c'est un univers qui m'intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d'en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.