dYdX Foundation CEO Predicts a Stronger, Longer “DeFi Festival” Ahead

The decentralized finance (DeFi) ecosystem is poised for a major resurgence, and according to Charles d’Haussy, CEO of the dYdX Foundation, this revival is set to be a sustained, months-long boom that could start as early as September. Speaking at Consensus 2025 in Hong Kong, d'Haussy suggested that the upcoming growth phase should be better described as a "DeFi festival" rather than the brief "DeFi summer" seen in 2020. He predicts that the next wave of DeFi will be much longer and more inclusive, offering multiple entry points for new users.

The DeFi Summer: A Brief History

The term “DeFi summer” became synonymous with a period of rapid growth for decentralized finance platforms, starting in 2020. During this time, the sector saw a massive surge in adoption, with the total value locked (TVL) in DeFi protocols soaring to $15 billion. However, the boom eventually cooled off in 2022, when the market entered a bear phase. Despite this, d’Haussy believes the next DeFi growth phase will be more substantial and enduring than previous cycles.

"DeFi summer, in people’s minds, is like three months of crazy parties," d’Haussy said. "I think this short period is behind us. What’s ahead will be a very long party, lasting months and months."

A "DeFi Festival": More Entry Points and Stronger Foundations

According to d’Haussy, the “DeFi festival” will not be just another short-lived event; it will be a long-term growth phase for the sector, with more accessible entry points for new users. He emphasized that established projects in DeFi—the “OGs” of the space—are poised to stand out even more. These trusted brands will continue to grow as newcomers gravitate toward their reliable platforms.

"All these projects you thought had been eaten by someone else are still there," d'Haussy explained. "They’re trusted brands and will grow even stronger because people will not systematically jump on the new things."

This long-term growth is also expected to attract greater institutional engagement. The DeFi market is maturing, with major players in the space building infrastructure that will facilitate institutional participation. d’Haussy pointed to Lido Finance, the largest liquid staking protocol, as an example. In August, Lido launched Lido Institutional, a solution designed to accommodate large institutional clients like custodians, asset managers, and exchanges.

The Role of Centralized Exchanges (CeFi) in DeFi’s Growth

d’Haussy also sees centralized exchanges (CeFi) playing a pivotal role in bridging the gap between traditional finance and DeFi. As some centralized exchanges develop their own blockchains, wallets, and DeFi offerings (including lending and futures), they are helping to onboard their existing users into the DeFi ecosystem.

"The bridge we needed for CeFi users to go to DeFi is being designed by the CeFi champions," said d'Haussy. "They are not pushing users out; rather, they’re facilitating access to DeFi and making the experience smoother."

This shift could see more CeFi users transitioning into DeFi, as centralized platforms continue to evolve and expand their offerings. By providing seamless access to decentralized services, these exchanges help to retain users within their ecosystems while also opening the door to decentralized finance.

Macroeconomic Factors: A Roadblock Before the DeFi Boom?

While d’Haussy remains confident in the future of DeFi, he notes that macroeconomic conditions may present some challenges before the DeFi boom begins. He anticipates a “choppy summer,” possibly even a mini-crisis, which could slow down the market temporarily. However, he is optimistic that by September, the crypto market will be back on track, and DeFi will begin to experience its long-awaited resurgence.

"I think we will have a choppy summer and possibly a mini-crisis," d’Haussy said. "But I’m confident the crypto market will be back on track by September."

Conclusion: The Future of DeFi

As the DeFi sector continues to mature and evolve, d'Haussy's vision of a “DeFi festival” suggests a period of sustained growth, with more entry points and greater institutional involvement than ever before. While macroeconomic conditions may pose challenges in the short term, the infrastructure being built and the increasing collaboration between CeFi and DeFi players signal that the stage is being set for an exciting, long-term expansion of decentralized finance.

For both newcomers and seasoned players, the coming months could mark the beginning of a new era for DeFi—one that goes beyond the short-lived excitement of past booms and instead delivers lasting innovation and growth across the industry.