Bitcoin (BTC) grabbed attention from the rest of the crypto market in 2024, but the Trump administration quickly transforms game policies and a twist on other possessions can end up happening, according to the Crypto Kaiko Research data firm
In fact, the sector of Decentralized Finance (DEFI) does not look bad, Kaiko research analysts Adam McCarthy and Dessislava Aubert wrote in a new report.
The company’s defi index (KSDEFI) has released Ether (ETH) since the start of the instrument in October 2023, carrying a nearly 75% return at that time. It is noteworthy that it is considered that most of the protocols included in the index are built in Ethereum.
“This outperformance can continue in the last half of 2025, as some index owners benefit from strong tails,” the report said. “This trend features a reduction in the relationship between the Defi Index and ETH over time, as the decentralized financial sector continues to expand beyond the Ethereum ecosystem.”
The index consists of 11 Defi tokens, the most heavy weight being uni, aave and ondo. At least four of these tokens have a strong tailwind for the rest of the year, the report said.
For example, US regulation development may open possibilities for the decentralized exchange of uniswap and decentralized AAVE lender to implement fees switches for each of their tokens, which means that protocol fees can end distributing uni and aave holders.
The tokenization protocol ondo finance, for its part, is likely to benefit from an acceleration of tokenization tokenization as Wall Street continues to deepen in crypto, the report said.
“Regulation barriers to major markets have become a significant drawback (since 2020), but they are only part of the challenge. Defi also faces structural issues, including high user friction due to fees and security concerns. However, in regulating the regulation, the sector now has a rich opportunity for growth,” said the report. “
