Investors Prefer Conservative APYs in DeFi; L2s Draw Attention

Investors Prefer Conservative APYs in DeFi; L2s Draw Attention

By
Chrisandra Ortiz
1 min read

The DeFi segment is witnessing a strong recovery, with most investors choosing to lock their funds in pools offering only 0-5% APY. Exponential.fi's report reveals that over 75% of DeFi TVL is in such conservative pools, reflecting a notable shift in investor behavior. Additionally, the yield-generating DeFi protocols have shown a steady climb from $26.5 billion in Q3 2023 to $59.7 billion in Q1 2024, signaling renewed confidence and liquidity in the DeFi markets. Furthermore, the DeFi lending sector is experiencing a revival with stablecoin borrowing rates reaching double digits, indicating a bullish trend compared to the bear market. The noncustodial bridging sector has also seen a significant increase, driven by the adoption of ZK rollups on Ethereum.

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