Stani Kulechov, founder and CEO of Aave, a leading name in the decentralized finance (DeFi) industry, said that global interest rate cuts could initiate a new wave of growth in the DeFi market.
Interest Rate Cuts Could Trigger DeFi Sector
“Every central bank rate cut, whether from the Fed or the European Central Bank, creates additional arbitrage opportunities for DeFi returns. As interest rates fall, we will see a very strong bull market in DeFi,” Kulechov said at the Token2049 event in Singapore.
Kulechov stated that this process will offer “attractive returns for investors regardless of region.” Last month, the US Federal Reserve (Fed) lowered its policy rate by 25 basis points to a range of 4%-4.25% and signaled two more cuts by the end of the year. President Donald Trump is calling for more aggressive rate cuts.
Kulechov recalled that near-zero interest rates in the post-2020 period triggered DeFi's first major surge, the “DeFi Summer,” saying, “Today, we have established a fully developed DeFi infrastructure. In the coming phase, DeFi will be more integrated into the financial and fintech system and distribute returns.”
Aave saw significant growth in 2025, increasing its total value locked (TVL) from $21 billion to $43.4 billion. The protocol has become the sixth‑highest‑generating DeFi protocol in fees, exceeding $99 million in revenue in the last 30 days.
Kulechov also predicted that tokenized assets will play a larger role in the future of DeFi as regulations ease.
*This is not investment advice.