Mo.bi - Crypto Currency Tracker logo Mo.bi - Crypto Currency Tracker logo
Seeking Alpha 2021-12-28 16:57:22

DeFi Winter: Seeking Regulatory Alpha

Unlike most of the crypto asset class, many Decentralized Finance (DeFi) tokens, especially those related to crypto lending protocols, have not recovered since the May 2021 crypto market selloff.A "DeFi Winter" started after the May selloff most likely due to uncertainties around future regulations and requirements for stablecoin issuers and DeFi protocols.Although DeFi token prices continue to suffer, total assets committed to protocols (referred to as Total Value Locked (TVL)) continue to make all-time highs and currently sit at ~$250 billion.Leading DeFi lending protocol tokens, such as AAVE, COMP, SLND, offer asymmetric returns because of current regulatory uncertainties not only around their protocols, but also around stablecoins.We don't believe an overly aggressive DeFi or stablecoin regulatory regime will come to fruition for several reasons. Leading DeFi tokens should benefit.

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.