At Token2049 in Singapore, Aave founder and CEO Stani Kulechov argued that falling interest rates worldwide could set the stage for another explosive chapter in decentralized finance.
According to Kulechov, every time central banks like the U.S. Federal Reserve or the European Central Bank lower rates, new opportunities emerge for DeFi protocols to deliver competitive yields. He believes this dynamic could create the conditions for a powerful DeFi bull run, with investors across regions drawn to returns that traditional markets may struggle to match.
The remarks come shortly after the Fed trimmed its benchmark rate by 25 basis points, lowering it to 4%-4.25%, with further cuts expected this year. President Donald Trump has urged policymakers to move even faster. Kulechov linked this environment to the “DeFi Summer” of 2020, when ultra-low borrowing costs fueled an explosion of innovation and activity across lending and yield platforms.
“Back then, the infrastructure was still experimental,” he said. “Today, DeFi has matured into a global financial system in its own right. The next wave won’t just be about speculation – it will be about integration with fintech and real-world financial services.”
Aave itself has surged in 2025, more than doubling its total value locked from $21 billion to $43.4 billion. It has also climbed the ranks in fee generation, pulling in over $99 million in the past month alone, making it one of the most profitable DeFi platforms currently operating.
Looking forward, Kulechov highlighted tokenized assets as a likely driver of the sector’s growth, noting that regulatory clarity will play a key role in unlocking the full potential of digital assets within the broader economy.
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Source: https://coindoo.com/aave-ceo-predicts-interest-rate-cuts-will-drive-defi-bull-market/