Aave

2024

DeFi

Block

USDC

<p>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.</p> 
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     <p lang="en" dir="ltr">Bernstein says DeFi yields are set for a comeback amid likely US rate cuts <a href="https://t.co/vYxSJF20Vv">https://t.co/vYxSJF20Vv</a></p>— The Block (@TheBlock__) <a href="https://twitter.com/TheBlock__/status/1835616680854114381?ref_src=twsrc%5Etfw">September 16, 2024</a>
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  DeFi market growth
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<h2 id="h-les-rendements-defi-sur-le-point-de-depasser-5-dans-un-contexte-de-baisse-des-taux">DeFi returns set to exceed 5% in a context of falling rates</h2> 
<p>According to Bernstein’s crypto analysts, the crypto market is in a frenzy. They are specifically referring to <a href="https://www.cointribune.com/quest-ce-que-la-finance-decentralisee-defi/" target="_blank" rel="noreferrer noopener">decentralized finance (DeFi)</a> which could <strong>surpass traditional money market funds</strong>. With the FED considering lowering its interest rates, DeFi returns could indeed make a spectacular comeback.</p>
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<p>Today, returns on platforms like Aave already reach 3.7% to 3.9%. Bernstein’s cryptography experts even foresee <strong>the potential to exceed 5%</strong>, 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.</p> 
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<h2 id="h-la-reprise-des-marches-defi-pourrait-revitaliser-les-prix-des-crypto-actifs">The recovery of DeFi markets could revitalize the prices of crypto assets</h2> 
<p>DeFi is currently benefiting from a dual momentum.</p> 
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 <li>On one hand, the anticipated rate cut favors the attractiveness of crypto investments.</li> 
 <li>On the other hand, <strong>the total value locked (TVL) in DeFi has doubled</strong> since the lows of 2022. It now stands at $77 billion.</li> 
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<p>According to Bernstein, the <strong>increase in the number of active monthly DeFi users</strong> (which has tripled from its lowest level) shows a gradual return of confidence.</p> 
<p><a href="https://www.cointribune.com/en/crypto-the-volume-of-stablecoins-on-ethereum-is-exploding-but-at-what-cost/" target="_blank" rel="noreferrer noopener">Stablecoins</a> play a key role in this recovery. Their <a href="https://www.theblock.co/data/stablecoins/usd-pegged/total-stablecoin-supply" target="_blank" rel="noreferrer noopener">capitalization</a> amounts to $178 billion, a level similar to that observed during previous market rises.</p> 
<p>In this phase of DeFi recovery, Aave and Ethereum appear as major players. The Aave crypto token, in particular, has recorded <strong>a 23% increase over the past 30 days</strong>.</p> 
<p>If <a href="https://www.cointribune.com/en/bitcoin-the-giant-berstein-fund-gives-its-prediction/" target="_blank" rel="noreferrer noopener">Bernstein’s predictions</a> are correct, this could trigger a bullish cycle for decentralized finance and digital assets (including cryptocurrencies).</p>

Crypto: DeFi Yields Set To Surpass US Money Market Funds

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