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What will drive crypto’s likely 2024 bull run?

Published 09/07/2022, 01:12 PM
Updated 09/07/2022, 03:20 PM
What will drive crypto’s likely 2024 bull run?

Decentralized finance (DeFi) has seen tremendous growth since its inception, expanding by more than 1,200% in 2021 in total value locked (TVL) and surpassing $240 billion in invested assets. While DeFi has since dropped to around $60 billion TVL as a result of wider macroeconomic trends, such as rising inflation, the seeds are in place for DeFi to reconfigure the foundations of our financial infrastructure when the next market cycle comes.

Historically, the return to a bull market develops over a four-year trajectory. This time, a recovery in 2024 is highly feasible due to the maturation of monetary policy and easing of regulatory headwinds, which can allow for reduced interest rates and enable the flow of funding back into the space.

Source: DeFi Llama
Ken Timsit is the managing director of Cronos chain and Cronos Labs, the first Ethereum Virtual Machine-compatible layer-1 blockchain network built on the Cosmos SDK.

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