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DeFi Dynamics in a Shifting Economy
This chapter explores how macroeconomic changes, particularly lower interest rates, may catalyze a bull cycle in the decentralized finance (DeFi) sector, attracting investors with higher yields. It analyzes the evolving landscape of DeFi, highlighting advancements in security, user experience, and the competitive tensions between Ethereum and emerging platforms like Solana. Additionally, the chapter examines the intricacies of Layer 2 solutions, questioning their impact on Ethereum's liquidity and governance while considering the future sustainability of various DeFi projects.