DeFi yields have exceeded yields from conventional investments like U.S. Treasuries, raising hopes for rekindled interest and maybe another DeFi Summer.
But DeFi now looks ascendant, triggering memories of 2020, aka DeFi Summer, when the space bustled with activity. Over the past year or so, with yields from fixed-income products rivaling what was on offer at DeFi platforms, traditional finance firms like JPMorgan and BlackRock and crypto startups like Ondo Finance have focused their crypto efforts on tokenizing higher-yielding assets like U.S. Treasuries and money-market funds.
"We've actually had two complete changes in the market. You had the Fed change rates overnight, basically; at least it went from zero to 2% or 3% pretty quickly and that completely changed the face of DeFi," Vogelsang said in an interview."The bull market saw prices slowly start going up, and now, two months later, it's completely opposite again, in terms of looking at rates in DeFi and TradFi.