On August 7, according to CoinDesk, Morgan Stanley analyst Nikolaos Panigirtzoglou stated in a research report that the growth of decentralized finance (DeFi) and asset tokenization remains disappointing, with recovery stalling since the Crypto Winter of 2022.
The report noted that the total value locked (TVL) in DeFi has not yet recovered to its 2021 peak, and current activities are still primarily driven by crypto-native users and retail investors. Despite the development of compliant infrastructure, such as permissioned lending pools and KYC-enabled vaults, institutional adoption remains lagging.
The analyst pointed out that major obstacles persist, including regulatory fragmentation, legal uncertainty of on-chain assets, and concerns about smart contract security.
