Why have DeFi tokens skyrocketed recently? Uncover the driving force behind it

In the past month, the performance of the DeFi (decentralized finance) track has been astonishing. Many DeFi tokens have experienced a surge, with token prices for projects such as Sushi, Uni, and DYDX doubling one after another. This phenomenon is not just a random fluctuation of the bull market, but also reflects the deeper driving force behind the DeFi market. This article will analyze in detail the reasons for the skyrocketing of DeFi tokens, reveal the driving forces behind it, and explore the potential future impacts of this market trend.

1、 The positive regulatory environment in the United States

With the continuous development of the DeFi market, its integration with traditional financial markets is becoming increasingly close. DeFi projects are not limited to decentralized trading platforms, they are also intertwined with CeFi (centralized finance) and TradFi (traditional finance), forming a more diversified financial ecosystem.

3.1 The Rise of Stablecoins

As a core component of DeFi, stablecoins have received great attention in recent times. The continuous growth of stablecoins such as USDT and USDC meets users’ basic financial needs for asset collateral, peer-to-peer lending, and lays the foundation for the formation of a decentralized financial ecosystem. With the improvement of the stablecoin system, the user base of the DeFi market continues to expand, and the trading…