DeFi Used to Be Crypto’s Hottest Sector. Now It’s Facing a Big Downturn.
- The once hottest sector in crypto faces months-long stagnation
- Initiatives expected to struggle amid fall in trading volume
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Declining interest in decentralized finance is calling into question whether it really is the next frontier of crypto.
DeFi projects — such as peer-to-peer lending or decentralized autonomous organizations — were assumed to be the beneficiary of FTX’s collapse last year when investors pulled billions of dollars out of cryptocurrencies. But a closer look shows that hasn’t been the case, even though DeFi tokens have historically outperformed the sector.