Because the crypto industry remains relatively small, there’s simply not enough capital to lend to people who are bullish and, as a result, they don’t mind borrowing at high rates. While institutions are clearly interested in crypto, they are not actually filling gaps in market demand, Vogelsang pointed out. “A money market off-chain wouldn’t yield 12% just because there’s a lack of supply; someone would fill it. On-chain, that’s not the case,” he said. “It’s a sign of immaturity in that way.”
![Hopes for Another DeFi Summer Soar as TradFi Markets Suddenly Look Less Appealing Hopes for Another DeFi Summer Soar as TradFi Markets Suddenly Look Less Appealing](https://www.coindesk.com/resizer/l3hAZ8Z9nLSn1xw7oWBa1cvEAzE=/1200x628/center/middle/cloudfront-us-east-1.images.arcpublishing.com/coindesk/GJF5FLDZ6FFKXPXDOXEIM7VZEE.jpg)