Following the 2022 collapse, the DeFi market is gradually recovering but remains significantly below its peak of $179 billion. Factors contributing to this include past losses for users and the attractiveness of traditional assets like Treasuries yielding 5%. The volatility of cryptocurrencies adds complexity to borrowing and lending in DeFi, limiting participation. Meanwhile, institutional investors are turning their attention to real-world assets (RWAs), with figures like BlackRock's CEO promoting tokenization as a transformative element in finance that could bridge traditional and decentralized markets.
Despite the collapse in 2022, DeFi is slowly recovering, but remains far from its peak, as risks and low yields deter participants.
The appeal of decentralized lending has waned due to complexities and risks highlighted by the ongoing volatility of cryptocurrencies.
Institutional interest in real-world assets is growing, with major players exploring tokenization, marking a potential shift in the DeFi landscape.
Larry Fink of BlackRock emphasizes tokenization's importance in finance, potentially signifying a path forward for DeFi by integrating traditional assets.
Collection
[
|
...
]