Bernstein analysts predicted a "big bang" in the DeFi segment
Bernstein experts expect an accelerated recovery of the DeFi segment amid the growth of bitcoin and a powerful influx of capital into spot ETFs. This is reported by The Block.
According to analysts, the decentralized finance sector was "completely destroyed" during the previous market cycle. The latter was characterized by "unstable profitability" due to inflationary token incentive programs. Subsequently, this model collapsed.
As a good example, experts cited the collapse of the Terra ecosystem in May 2022. Before the collapse, the Anchor DeFi project offered a 20% return on the TerraUSD (UST) algostablecoin involved in the protocol, based on the Luna management token. As a result of the collapse of the platform, investors lost about $40 billion.
Within the current market cycle, "returns are real," experts are sure. According to them, the stability of the segment is given by the underlying key dapps like Uniswap. A DEX-affiliated nonprofit organization in February proposed distributing protocol fees among UNI holders. This has had a beneficial effect on the exchange rate of the platform's native token.
"The largest decentralized spot exchange has generated a trading volume of $2 billion in the last 24 hours — more than 50% of Coinbase's turnover," The Block researchers shared their observations.
Source: https://forklog.com/news/analitiki-bernstein-sprognozirovali-bolshoj-vzryv-v-defi-segmente
