The decentralized finance (DeFi) market is showing strong signs of recovery, especially as the U.S. government has supportive policies for crypto. Some reports from market analysis organizations suggest that DeFi could enter a new growth phase thanks to greater legal clarity and increasing interest from financial institutions.

New policies pave the way for DeFi

The current legal environment is more open to blockchain technology and decentralized finance. These changes could help reduce legal barriers, facilitating stronger development of DeFi projects.

One notable sign is the development of the lending protocol Aave, which has the largest total value locked (TVL) in the lending space, reaching over 20 billion USD according to data from #DeFiLlama . $AAVE is also being adopted by some organizations like World Liberty Financial (WLF), a project supported by the U.S. government. This indicates growing confidence in DeFi infrastructure.

Charlie Hu, CEO of the Bitcoin Layer 2 platform Bitlayer, also shared that the new administration has sent many positive signals regarding the future of DeFi and crypto in general. In particular, new token governance models are helping to open up profit-making opportunities for investors.

Despite many opportunities, DeFi still faces considerable challenges. According to experts, the U.S. Department of the Treasury and the Internal Revenue Service (#IRS ) are expected to implement new regulations by 2027, requiring DeFi platforms to conduct KYC (Know Your Customer) and report user transactions like traditional exchanges. This could change the decentralized nature and privacy of DeFi.

Additionally, the U.S. Securities and Exchange Commission (SEC) recently revoked regulation SAB121, allowing companies not to record cryptocurrency assets on their balance sheets if they hold them for customers.

In the trading sector, the decentralized exchange Raydium on Solana is leading by leveraging the explosion of meme coins and AI tokens. This platform is also collaborating with Pump.fun, dubbed the 'meme coin factory' of Solana, helping Raydium expand its market share in on-chain trading.

Furthermore, the decentralized derivatives exchange Hyperliquid is recording trading volumes greater than centralized exchanges like KuCoin, Kraken, and HTX. Hyperliquid's success comes from its fast trading system and improved user experience.

Stablecoin: A new playground full of potential

Despite the dominance of USDT and USDC, the stablecoin market is still developing with new models. Some projects like $USUAL and $ENA are combining price stability with speculative opportunities, opening up a new direction for this sector.

Indicators such as on-chain revenue and the level of DeFi adoption will determine whether DeFi can maintain long-term growth momentum or remain just short-term speculative cycles.

In summary

DeFi is at a critical stage with many opportunities and challenges. If legal policies continue to be open, institutional capital flowing into DeFi could help the market enter a new era of growth. However, new regulations may also create barriers that require DeFi to adapt to maintain sustainable development.

Risk warning: Investing in DeFi and crypto always carries high risks. Investors should thoroughly research information and consider before participating. This article is not investment advice.