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While world markets await the Fed’s new interest rate decision to be announced on Wednesday evening, analysts at asset management company Bernstein have drawn attention to the decentralized finance (DeFi) sector. Analysts expect returns in this area to exceed US money market funds and exceed 5%. In line with this analysis, two coins were removed from Bernstein’s crypto portfolio and AAVE was added.
The US Federal Reserve (Fed) will announce its interest rate decision on Wednesday at 21:00 GMT. While the expectation of a 25 basis point cut stands out strongly, it is thought that this cut could create an increase in the value of risky assets.
Analysts at Bernstein, which manages more than $750 billion in assets worldwide, emphasized the DeFi world in their latest report. The report tated that DeFi returns have become attractive again and that this situation could revitalize crypto credit markets.
Analysts predict that stablecoin returns in the DeFi sector could outpace US money market funds. If this happens, they say, returns could exceed 5%, which could push crypto prices of DeFi projects higher.
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Bernstein analysts announced that they have removed two tokens from their crypto portfolio and added AAVE, one of the largest DeFi lending protocols. The coins that are leaving the portfolio include SNX (Synthetix) and GMX.
Other crypto assets still in the portfolio are: BTC (Bitcoin), ETH (Ethereum), OP (Optimism), ARB (Arbitrum), POL (Polygon), LDO (Lido), SOL (Solana), UNI (Uniswap), LINK (Chainlink), and RON (Ronin).
As you may recall, before the 2021 bull season, DeFi tokens experienced a major rise in the period called “DeFi summer”. During that period, protocols such as AAVE, UNI, SNX and Compound in particular gained value. However, today’s prices are well below the levels of that period.
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