Apollo Crypto, an investment management firm specializing in digital assets, has released a report highlighting the potential for a second wave of growth in the decentralized finance (DeFi) space.

The report notes that there was a market slowdown following the “Summer of DeFi” peak in 2020, but protocols like Maker, Uniswap, and Aave have become permanent fixtures in the industry. As of today, total DeFi TVL stands at around $105 billion.

Macroeconomic factors, particularly the US Federal Reserve’s rate cuts and China’s credit expansion, are identified as key drivers of DeFi growth. The Fed’s rate cut has created a more attractive option for riskier assets like Bitcoin (BTC) and Ether (ETH).

Developments in DeFi infrastructure are also highlighted in the report. The focus on crypto infrastructure in recent years has resulted in layer-2 scaling solutions that offer lower transaction costs and higher performance speeds.

Coinbase’s cbBTC is cited as a potential game-changer that could attract capital to the DeFi sector. This token allows users to more easily convert BTC into alternative crypto assets.

The report also notes that Aave has maintained its position as the leading decentralized lending platform and Uniswap is the highest volume decentralized exchange. Maker’s rebranding to the Sky ecosystem has received mixed reactions.

What do you think about these developments? Share your thoughts in the comments.