DeFi Resurgence

Definition ∞ DeFi resurgence indicates a renewed period of growth and activity within the decentralized finance sector. This trend involves increased user participation, capital inflow, and the introduction of new protocols and financial products within the DeFi ecosystem. It typically follows a period of market contraction or stagnation, signifying renewed investor confidence and technological advancement. A resurgence often correlates with broader positive sentiment in the cryptocurrency market and improved regulatory clarity.
Context ∞ Crypto news frequently reports on indicators of a DeFi resurgence, such as rising total value locked, increased trading volumes on decentralized exchanges, and the launch of innovative lending or borrowing platforms. This trend signals growing maturity and diversification within the digital asset economy, attracting both retail and institutional interest. However, regulatory scrutiny and security concerns remain ongoing discussions during such periods of expansion.