Broker Bernstein stated in a research study on Monday that a broad-based recovery in the cryptocurrency sector is anticipated, with decentralized finance (DeFi) leading the way.Analysts Gautam Chhugani and Mahika Sapra stated, “We expect a big bang DeFi recovery and the investor narrative to come back as the future of blockchain finance.”
Six of the 10 most lucrative protocols, according to Bernstein, are DeFI applications.Uniswap, Aave, Maker, GMX, Synthetix, and Sushi are these.The writers stated, “DeFi’s foolish last cycle was the game of unsustainable yields that came crashing down,” adding that the Luna stablecoin, which crashed later, was the pinnacle of unsustainable DeFi.One kind of cryptocurrency that is usually correlated with the US dollar is called a stablecoin.The word “DeFi” refers to a broad category of blockchain-based or cryptocurrency-based financial apps that aim to displace financial middlemen.The research stated that this cycle is different since the yield is real and that it would not be shocking to see global asset managers contemplating the possibility of a DeFi exchange-traded fund (ETF) and active DeFi due to regulatory clarity.
The biggest decentralized spot exchange is called Uniswap.The study went on to say that “at today’s run rate, Uniswap on an annualized basis could have revenues crossing $1b,” pointing out that the UNI token now has a $9.3 billion floating market value.