Morgan Stanley explains why DeFi’s explosive growth will end
Over-collateralization and regulation will limit the continued growth of the DeFi sector in the coming years. The bank’s experts also found no pieces of evidence that DeFi improves the traditional financial system.
Morgan Stanley experts note that DeFi is subject to hacking and financial risks. Decentralized projects look like a way to attract investments to enrich their operators.
Morgan Stanley expects increased control over the DeFi sector due to an initially slow response from regulators to the active growth in this area.