Decentralized finance (DeFi) is making a comeback, with the total locked-in value (TVL) of the cryptocurrency ecosystem expected to hit an all-time high in the first half of next year, according to a report released by Steno Research. The report points out that interest rates are the most critical factor affecting the attractiveness of DeFi, as the DeFi market is mainly centered on the US dollar. When interest rates fall, the opportunity cost of holding stablecoins also decreases, thus increasing the attractiveness of DeFi. The growth in stablecoin supply and the rapid development of physical assets such as tokenized stocks, bonds, and commodities have also provided a boost to the recovery of the DeFi market. The decline in transaction fees on the Ethereum network has made DeFi more accessible. Steno analyst Mads Eberhardt said that interest rate policy remains the most critical factor in the current DeFi recovery, just as it was driven by the Federal Reserve's rate cuts after the DeFi summer of 2020. Although TVL is well below its peak in 2021, Steno expects it to hit a new high in the first half of next year. This shows that the DeFi ecosystem is regaining its vitality and investors are regaining their optimism about the track.