According to the research, six of the 10 most profitable protocols are DeFi apps.
Bernstein, a broker, said Monday in a research paper that the cryptocurrency market recovery would be widespread, with decentralized finance (DeFi) taking the lead. In their analysis, analysts Gautam Chhugani and Mahika Sapra predicted that “the investor narrative will come back as the future of blockchain finance” and that there would be a great DeFi rebound.
Bernstein points out that DeFI applications make up six of the top 10 protocols that generate income. Sushi, GMX, Uniswap, Aave, and Maker are among them. According to the writers, “DeFi’s mistake last cycle was the game of unsustainable yields that came tumbling down.” They went on to say that the Luna stablecoin was the most unsustainable example of DeFi, and it eventually failed.
Cryptocurrencies that maintain a constant value relative to the dollar are known as stablecoins. The word “DeFi” describes a wide range of financial blockchain or cryptocurrency applications that aim to eliminate middlemen. This cycle is different since the yield is genuine, according to the research. Now that regulations are clear, global asset managers are exploring a DeFi exchange-traded fund (ETF) and active DeFi funds, according to the report.
One of the most prominent decentralized spot exchanges is Uniswap. In addition to the UNI token’s current floating market worth of $9.3 billion, the research claimed that “Uniswap on an annual basis might generate revenues topping $1b” if current trends continue.
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