As the cryptocurrency rally continues, Bernstein analysts said in a note this week that they expect a "big bang DeFi comeback."
Bitcoin is now trading close to the $65,000 mark after a strong surge that began at the start of the year. It is not too far off its all-time high.
"While the Bitcoin rally can be attributed to the ETF flows, the market is just not stopping at Bitcoin," said Bernstein. "We expect the market recovery to get broad-based, with DeFi leading the charge, being 6 out of top 10 revenue producing protocols in crypto."
"The DeFi token, which was a non-value accruing governance token or an inflating token to generate an unsustainable yield, now accrues value from actual user fees generated by the underlying application," explained the firm.
They now expect a big bang DeFi recovery and the investor narrative to come back as the future of blockchain finance.