The recent downturn in the crypto market has led to increased interest in decentralized finance (DeFi) apps. DeFi protocols are experiencing a surge in usage and fees, signaling growing demand. The end of a legal case against Uniswap by the US Securities and Exchange Commission has further bolstered the DeFi space. While some lending protocols experienced outflows, others saw active inflows, particularly for tokenized real-world assets. DeFi Saver emerged as a leader in revenues due to its role in preventing liquidations during the market downturn. Another notable DeFi protocol, Ethena, showed resilience during the Bybit hack and market volatility. The DeFi sector still holds over $102 billion in total value locked, with stablecoins and legacy assets playing a significant role. Despite the downturn, DeFi proves to be a robust area of development, serving as the backbone for liquidity allocation, stablecoins, and decentralized exchange swaps. DeFi tokens, such as Maker (MKR) and ThorChain (RUNE), have experienced short-term rallies amidst the market challenges. Overall, DeFi has become the second-largest narrative in crypto, trailing only general AI discussions.



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