Decentralized Finance (DeFi) is poised for a resurgence, driven by pro-crypto policies emerging under the Trump administration, according to BitMEX's recent report. This regulatory clarity could significantly reduce obstacles for both established and new players in the sector. The report highlights AAVE as a leading lending protocol with over $20 billion in Total Value Locked (TVL), reflecting increasing institutional confidence in DeFi infrastructure. However, upcoming IRS regulations set to take effect in 2027 that mandate KYC procedures may challenge DeFi’s privacy-centric framework. Additionally, BitMEX notes that platforms like Raydium are gaining traction in the decentralized exchange market, focusing on meme coins and AI tokens. While the landscape is evolving, new stablecoin models are also emerging alongside established players like USDT and USDC. BitMEX's outlook for 2025 underscores the importance of sustained growth indicators and the potential reshaping of perceptions toward DeFi facilitated by major regulatory shifts and institutional interest.

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