{"id":3921,"date":"2023-07-01T12:31:29","date_gmt":"2023-07-01T12:31:29","guid":{"rendered":"https:\/\/centoscoin.com\/?p=3921"},"modified":"2023-07-01T12:31:29","modified_gmt":"2023-07-01T12:31:29","slug":"defi-summer","status":"publish","type":"post","link":"https:\/\/centoscoin.com\/defi-summer\/","title":{"rendered":"“DeFi Summer” Probably Will not Return in 2023"},"content":{"rendered":"\n
As June comes to a close, the summer season has officially begun, leading cryptocurrency investors to wonder if we will soon be in for another “DeFi summer,” as they have every summer since DeFi first became widely accepted in the cryptocurrency industry in the summer of 2020.<\/p>\n\n\n\n
DeFi is an alternative financial system that uses decentralized applications (dApps), smart contracts, and blockchain technology to deliver financial services in an open and transparent manner and without the need for reliable middlemen.<\/p>\n\n\n\n
The nascent multi-chain DeFi ecosystem experienced a boom in attention and investment over the summer of 2020.<\/p>\n\n\n\n
DeFi Llama<\/a> claims that over the summer of 2020, the trade value locked (TVL) across all significant smart-contract-enabled blockchains increased by 5 times, from about $2 billion to over $10 billion, before continuing to soar further in 2021.<\/p>\n\n\n\n TVL stands for the currency locked in dApp smart contracts, which is cryptocurrency.<\/p>\n\n\n\n The larger DeFi ecosystem is still in a rut as summer 2023 gets started.<\/p>\n\n\n\n Since the catastrophic collapse of the Ponzi-esque Terra blockchain’s DeFi ecosystem last May, TVL across major chains has remained stalled below $100 billion.<\/p>\n\n\n\n While significant crypto industry catastrophes like the Terra <\/a>collapse and FTX <\/a>implosion last November are already in the past, it seems doubtful that this summer will see a recurrence of the excitement we saw towards DeFi in 2020.<\/p>\n\n\n\n Here are two important reasons why “DeFi Summer” Probably Will Not Return in 2023.<\/p>\n\n\n\nThe SEC is on the Attack<\/strong><\/h3>\n\n\n