- The growth curve of DeFi protocols providing exposure to U.S. treasuries has stagnated.
- These products were anticipated to remain cold in the coming months.
Tokenized U.S. treasuries were one of the biggest success stories in decentralized finance (DeFi) during last year’s bear market.
By issuing them as on-chain assets, DeFi users gained access to one of the safest and most reliable investment vehicles in the traditional market.
However, since the beginning of 2024, investors’ appetite for such projects has dipped considerably, with most getting drawn towards returns offered by riskier investments such as cryptocurrencies.
Bitcoin’s gain is tokenized treasuries’ pain
On-chain analyst Tom Wan drew attention to the negative correlation between investments in tokenized treasuries and the price of Bitcoin [BTC].
As the world’s largest cryptocurrency grew from $38k to $64k, the size of the on-chain treasury market shrank.
Source: 21.co
Moreover, the growth curve of protocols providing exposure to U.S. treasuries stagnated.
Ondo Finance and Mountain Protocol, two of the biggest names in the sector, saw monthly TVL drops of 0.1% and 0.26% respectively, AMBCrypto examined using DeFiLlama data.
Source: DeFiLlama
Not looking too optimistic?
A weak macroeconomic climate and a hawkish U.S. Federal Reserve spurred attractive yields on U.S. government debt last year.
Their subsequent tokenization enabled Web3 users to enjoy these assured returns as well. This was the time when the crypto market had stagnated.
However, as the market heated up in recent months, many investors ditched the stable 5% yield in favor of double-digit, and even triple-digit returns.
Given broader expectations of the Fed cutting interest rates, tokenized treasuries were anticipated to remain cold in the coming months.
Tom Han, while advising the builders of these projects, said,
“In my opinion, U.S. Treasuries protocols should focus on adoption and integration instead of product expansion.”
He stated that though the idea of tokenization of equities and bonds sounds cool, the sector was vulnerable to regulatory risks.
He also suggested integrating these products into layer-1 and layer-2 networks to boost their adoption.
- The growth curve of DeFi protocols providing exposure to U.S. treasuries has stagnated.
- These products were anticipated to remain cold in the coming months.
Tokenized U.S. treasuries were one of the biggest success stories in decentralized finance (DeFi) during last year’s bear market.
By issuing them as on-chain assets, DeFi users gained access to one of the safest and most reliable investment vehicles in the traditional market.
However, since the beginning of 2024, investors’ appetite for such projects has dipped considerably, with most getting drawn towards returns offered by riskier investments such as cryptocurrencies.
Bitcoin’s gain is tokenized treasuries’ pain
On-chain analyst Tom Wan drew attention to the negative correlation between investments in tokenized treasuries and the price of Bitcoin [BTC].
As the world’s largest cryptocurrency grew from $38k to $64k, the size of the on-chain treasury market shrank.
Source: 21.co
Moreover, the growth curve of protocols providing exposure to U.S. treasuries stagnated.
Ondo Finance and Mountain Protocol, two of the biggest names in the sector, saw monthly TVL drops of 0.1% and 0.26% respectively, AMBCrypto examined using DeFiLlama data.
Source: DeFiLlama
Not looking too optimistic?
A weak macroeconomic climate and a hawkish U.S. Federal Reserve spurred attractive yields on U.S. government debt last year.
Their subsequent tokenization enabled Web3 users to enjoy these assured returns as well. This was the time when the crypto market had stagnated.
However, as the market heated up in recent months, many investors ditched the stable 5% yield in favor of double-digit, and even triple-digit returns.
Given broader expectations of the Fed cutting interest rates, tokenized treasuries were anticipated to remain cold in the coming months.
Tom Han, while advising the builders of these projects, said,
“In my opinion, U.S. Treasuries protocols should focus on adoption and integration instead of product expansion.”
He stated that though the idea of tokenization of equities and bonds sounds cool, the sector was vulnerable to regulatory risks.
He also suggested integrating these products into layer-1 and layer-2 networks to boost their adoption.
clomiphene pill where to buy generic clomiphene pill buying clomiphene tablets where to get generic clomiphene price how can i get generic clomiphene price generic clomiphene pill where can i get clomid
This is a topic which is in to my verve… Numberless thanks! Quite where can I upon the contact details due to the fact that questions?
This website exceedingly has all of the low-down and facts I needed about this case and didn’t comprehend who to ask.
semaglutide cost – purchase periactin online cheap periactin 4 mg pill
buy domperidone for sale – cyclobenzaprine canada cyclobenzaprine 15mg uk
purchase inderal pills – oral methotrexate order methotrexate sale
brand zithromax – where can i buy bystolic nebivolol 5mg usa
order nexium 40mg – anexamate.com order esomeprazole 20mg pill
purchase medex pill – https://coumamide.com/ buy losartan without a prescription
purchase meloxicam without prescription – https://moboxsin.com/ buy meloxicam online cheap
buy deltasone 5mg pill – aprep lson brand prednisone 40mg
order amoxil for sale – purchase amoxicillin online buy cheap amoxicillin
oral diflucan – https://gpdifluca.com/# buy diflucan 200mg pills
buy lexapro 10mg without prescription – https://escitapro.com/ buy generic lexapro over the counter
cenforce buy online – cenforce 100mg pill purchase cenforce sale
difference between cialis and tadalafil – canada cialis order cialis online cheap generic
order zantac 300mg for sale – zantac 300mg pill order ranitidine 300mg online cheap
cheap viagra now mastercard – on this site order viagra now
Thanks on putting this up. It’s well done. buy amoxicillin no prescription
This is a topic which is in to my fundamentals… Diverse thanks! Unerringly where can I upon the acquaintance details in the course of questions? neurontin opiniones
Thanks for sharing. It’s outstrip quality. https://ursxdol.com/get-metformin-pills/
More posts like this would create the online space more useful. https://prohnrg.com/product/metoprolol-25-mg-tablets/
The thoroughness in this piece is noteworthy. acheter du xenical en ligne
This is the tolerant of enter I unearth helpful. https://ondactone.com/product/domperidone/
This is the compassionate of literature I rightly appreciate.
order aldactone sale
More peace pieces like this would urge the web better. http://www.underworldralinwood.ca/forums/member.php?action=profile&uid=488147
order forxiga 10 mg generic – https://janozin.com/# dapagliflozin 10 mg price