🟦 The Federal Reserve’s interest rate cut in September 2023 could have a positive impact on the decentralized finance (DeFi) sector. Analysts from brokerage firm Bernstein note that lower rates in traditional financial instruments may encourage investors to return to DeFi applications.
🟦 The absence of intermediaries in DeFi creates favorable conditions for lending against crypto-assets. A key indicator of the sector’s recovery has been the increase in Total Value Locked (TVL) to over $30 billion. At the same time, the overall capitalization of stablecoins has risen. As a result, the rate cut by the Federal Reserve may serve as a catalyst for the recovery of the crypto sector and the attraction of institutional investors.