Bitcoin (BTC) took the limelight from the rest of the crypto market in 2024, but the Trump administration quickly changes the rules of the game and a rotation to other assets may end up happening, according to Crypto Data Firm Kaiko Research
In fact, the decentralized financing sector (DEFI) does not look so bad, Kaiko research analysts wrote Adam McCarthy and Dessislava Aubert in a new report.
The company’s defi index (KSDEFI) has surpassed Ether (ETH) since the start of the instrument in October 2023, which brought approx. 75% return in that time. It is noteworthy considering that most of the protocols included in the index are built in Ethereum.
“This violation can continue into the latter half of 2025, as several assets within the index take advantage of strong winds,” the report says. “This trend highlights the declining correlation between the defi index and ETH over time as the decentralized financial sector continues to expand beyond the Ethereum -Ecosystem.”
The index is composed of 11 defi -tokens, the most weighted is uni, aave and ondo. At least four of these symbols have strong tail winds for the rest of the year, the report says.
For example, legislative developments in the United States can open opportunities for decentralized exchange uniswap and decentralized lender Aave to implement fee switches for each of their respective tokens, which means that protocol fees may end up being distributed to Uni and Aave holders.
Tokenization Protocol Ondo Finance on its side is likely to benefit from an acceleration of the tokenization trend as Wall Street continues to wade deeper in crypto, the report said.
“Regulatory restrictions on key markets have been a significant obstacle [since 2020]But they are only part of the challenge. Defi has also been exposed to structural problems, including high user friction due to fees and security concerns. But with regulatory control of easing, the sector now has plenty of opportunities for growth, ”says the report.
