Bitcoin-based decentralized finance projects are narrowing their focus to niche user groups as liquidity continues to drain from the overall DeFi sector, according to Rootstock Labs Director of Institutional & Ecosystem Richard Green.
Speaking with The Block at last week's BTC Prague conference, Green said the crypto-native traders and hedge funds that used to be the easiest customers to pitch Bitcoin DeFi products to have mostly stepped back as capital flows out of the DeFi markets.
"What we've seen within the DeFi space is a massive loss of liquidity and a big pullback on that," Green said.
According to Green, and also in line with data from The Block, total value locked across DeFi protocols has fallen from roughly $180 billion last October to around $70 billion today.
"The liquidity's gone," he said.
