Uniswap and Maker Lead Second DeFi Boom Amid Fed Rate Cuts and China’s Credit Expansion: Apollo Crypto Report

COINOTAG news reported on October 1 that Apollo Crypto, a prominent investment management company, published a comprehensive report underscoring the resurgence potential for decentralized finance (DeFi). The analysis attributed this possible second wave of growth to pivotal macroeconomic factors, including the Federal Reserve’s recent interest rate cuts and China’s acceleration of credit expansion. These factors are envisioned as substantial contributors to the DeFi sector’s expansion.

The report revisited the DeFi boom during the “Summer of DeFi” in 2020, which was followed by a period of market deceleration. Despite this, DeFi protocols such as Maker, Uniswap, and Aave have solidified their positions as industry pillars. Presently, the total Value Locked (TVL) in the DeFi ecosystem stands at approximately $105 billion.

Additionally, the report highlighted the progression of DeFi infrastructure, asserting that recent years have been dedicated to enhancing cryptocurrency infrastructure. Efforts have been aimed at creating abundant and affordable block space to support decentralized applications (DApps). This advancement enables DApps to achieve higher performance speeds and reduces transaction costs via Layer 2 (L2) expansion solutions.