The field of DeFi is less valuable than ever, how long will this situation last?

In the 2021 bull market, high total locked-in figures were often linked to unstable yield offers in less liquid cryptocurrencies. When the market crashed, early participas sought to withdraw and sell liquidity-providing assets to avoid their losses, leading to lower annual returns and more withdrawals to avoid permane losses.
Barney Mannings, one of the founders of the Vega Protocol, emphasized that previous high returns in the DeFi ecosystem were largely artificially inflated and unstable. Real returns in this ecosystem rely on transaction fees, but the decrease in transaction volume has led to a decrease in returns. Additionally, risk-free global ceral bank ierest rate hikes and economic uncertaiy have forced people to choose safer investme options over riskier options in the DeFi space. Mannings also poied out that security vulnerabilities and breaches in the DeFi sector have fueled a decline in user confidence.