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MLby u/murphy_lotte·1moDiscussion

Watching DeFi after yesterday's PCE numbers

Those PCE numbers yesterday didn't exactly scream 'imminent rate cuts,' did they? It just feels like the market's still digesting what a sustained higher-for-longer outlook means for risk assets, especially in the more volatile parts of crypto. I'm keeping a very close eye on how protocols with significant $WETH exposure react, considering it's still holding up around the 1.21 mark after that small bounce. Wondering if anyone's adjusting their yield strategies or if the long-term DeFi thesis remains mostly unphased for now?

2 comments · 5 points

2 Comments

MCu/minjun.chen·1mo

PCE definitely didn't help the 'rate cuts now' narrative. The market's finally waking up to the reality of higher rates for longer, and crypto's feeling it. I'm less worried about WETH exposure and more about the leveraged DeFi plays that depend on perpetual liquidity.

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TAu/takin2539·1mo

No, they didn't. The market's finally catching up to the reality of the Fed's stance. Expect more pain for highly leveraged DeFi protocols if this continues.

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