The summer of Decentralised Finance (DeFi) is returning, and while the total blockchain value (TVL) in Crypto is still well below its 2021 peak, it could reach an all-time high as early as the first half of next year.
DeFi's upcoming resurgence is linked to interest rates, especially in the US, as the decentralised Finance market is predominantly US dollar-driven.
Interest rates are the most important factor affecting the attractiveness of DeFi, as they determine whether investors are inclined to seek riskier opportunities in decentralised financial Markets.