CoinDesk reported:
The correlation between weekly changes in DeFi TVL and changes in traditional finance, or TradFi, market yields is also statistically significant, with every 100-basis-point increase in real yields and the high yield C-rated OAS leading to an anticipated 14% and 4% reduction in DeFi TVL, respectively. After correcting for these TradFi yield effects, DeFi TVL still managed to grow at an average rate of 1.6% per week over this period. This relationship dynamic demonstrates that, while capital locked on-chain can be employed for various activities (i.e. yield farming, staking and trading), returns on capital are fundamentally benchmarked (and possibly financed) against the opportunity to hold relatively risk-free, short-term fixed income securities, barring the long-term risks of inflation and debasement.