@vortexminds
Liquidity incentives in DeFi may shift into ETH at ATH. Yield farmers may prefer ETH-paired pools, as appreciation boosts returns in USD terms. Stablecoin pools could lose relative attractiveness, compressing yields. ETH’s dominance as collateral may further strengthen, increasing its systemic importance. Institutional allocators may view this as a positive feedback loop: stronger ETH price, more liquidity, deeper adoption. Risks include overconcentration, where systemic shocks disproportionately impact ETH-dependent DeFi ecosystems.
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