Outlook 2022: A new DeFi summer and the emergence of ‘RDeFi’

Darius Moukhtarzade is a researcher at Sygnum, the world’s first digital asset bank. Prior to Sygnum, he worked for Ernst & Young in blockchain consultancy and for several startups in the Swiss Crypto Valley.

Undoubtedly, NFTs have received the most attention in the crypto space in 2021.

While some market observers had foreseen their rise in popularity and use a while ago, their skyrocketing adoption among both traditional and crypto-native players took most of us by surprise. The hype around punks, apes, and rocks overshadowed even the thriving DeFi sector.

Yet I expect that DeFi will come back into the spotlight again next year, experiencing a second “DeFi summer” as it did in 2020 for two main reasons: yield opportunities are likely to be more sought after, especially in a sideways or a bear market scenario; and the establishment of a regulated version of DeFi, which I will call RDeFi.

Attractive yield opportunities

Since the “DeFi s