Summary:

Arthur Cheong, CEO of DeFiance Capital, believes that the decentralized finance (DeFi) sector is experiencing a renaissance due to both internal improvements and external macroeconomic factors. With global interest rates shifting and the Federal Reserve implementing a rate cut, risk assets like crypto and DeFi become more attractive to investors seeking higher returns. Lower interest rates benefit DeFi as traditional savings accounts offer lower returns, leading investors to turn to DeFi protocols for higher yields. The lower financing costs can also encourage users to take out loans and increase activity within the DeFi ecosystem. Cheong predicts that the new interest rate cycle will also drive stablecoin growth by lowering the cost of capital for traditional finance funds looking to enter the DeFi sector.



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