The decentralized finance (DeFi) sector continues to capture the attention of cryptocurrency investors. ForkLog has compiled the most significant events and news of recent weeks in a digest.
Key Metrics of the DeFi Segment
The total value locked (TVL) in DeFi protocols has risen to $57.4 billion. Lido leads with $23.1 billion, followed by Maker ($8.4 billion) and AAVE ($7.2 billion).
TVL in Ethereum applications has increased to $32.9 billion. Trading volume on decentralized exchanges (DEX) over the past 30 days amounted to $94.6 billion.
Uniswap continues to dominate the non-custodial exchange market, accounting for 55.4% of total turnover. The second largest DEX by trading volume is PancakeSwap (18.5%), followed by Curve (8.2%).
Fidelity Sees Benefits for DeFi in Potential Fed Rate Cuts
Analysts at Fidelity believe that institutions will renew their interest in DeFi products if yields in traditional finance decline due to the policy of the Fed.
They noted the increase in the key rate in the US as a factor driving institutions away from the crypto industry towards safer traditional fixed-income instruments.
According to the report, DeFi platforms are susceptible to hacks and exploits and have complex user interfaces.
“In an environment of prevailing risk aversion, institutions found the yields offered by protocols too low for the associated risks,” the study states.
In 2024, as this disparity decreases and infrastructure develops, institutional investors are expected to show interest in DeFi, analysts predicted.
This could be supported by the approval of spot Bitcoin ETFs, the popularization of RWA, and growing demand for scalable infrastructure for dapps.
Aave Community Backs Integration of PayPal’s PYUSD Stablecoin
99.99% of participants in the vote for integrating PayPal’s PYUSD into Aave’s DeFi platform pools supported the initiative. The decision reached the necessary quorum.
The initiative followed the December decision by the decentralized exchange Curve to list PYUSD.
The proposal’s author, Trident 15, explained that the integration will create synergy with PayPal’s asset and strengthen the connection between PYUSD and Aave’s multi-collateral decentralized stablecoin GHO.