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, after a notable recovery from the market downturn.
Recent highlights:
- Launch of new "lending protocols" with interest rates reaching up to 15% annually.
- Increasing acceptance of decentralized loans among startups
- Central banks intervening to study the regulation of these markets
However, risks remain:
- Three major platforms suffered security breaches during the last quarter
- Warnings from U.S. authorities to investors about the lack of protection
Will DeFi maintain its momentum with tightening oversight, or is the era of the "new financial frontier" coming to an end? The market will respond in the coming months.
