Is decentralized finance (DeFi) a financial revolution or a passing bubble?
Decentralized finance systems are experiencing unprecedented growth, with the total value locked (TVL) in DeFi protocols surpassing $100 billion again in 2024, following a remarkable recovery from the market downturn.
Recent key developments:
- Launch of "new lending" protocols with interest rates up to 15% annually.
- Increasing acceptance of decentralized loans among startups
- Central banks intervening to study the regulation of these markets
Nevertheless, risks remain:
- Three major platforms were subjected to security breaches during the last quarter
- Warnings from U.S. authorities to investors regarding the lack of protection
Will DeFi maintain its momentum with increased scrutiny, or is the era of the "new financial west" nearing its end? The market will respond in the coming months.
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