DeFi Tokens Soar 38% Amid Shift in US Crypto Policy Expectations
The DeFi sector has experienced a significant surge in value, climbing nearly 38% since August 17 as investors reassess how US crypto policy affects protocol revenue and token valuations.
According to SoSoValue, the rally is moving DeFi closer to a market where fees, buybacks, and on-chain activity can play a larger role in determining token values.
The increase came alongside Bitcoin's and Ethereum's recovery and broader short covering, but the research firm argues that investors are also reevaluating whether mature DeFi protocols can return more of their revenue to tokenholders.
Under the proposed SEC framework, once a project has completed or permanently stopped its essential managerial work, its token may no longer remain part of an investment contract, giving markets confidence in the direction of US policy and assigning more value to protocol economics.