Vlad Kamyshov, CEO of EVAA Protocol, is raising red flags about how rising global tariffs could hit the crypto world hard — especially decentralized finance (DeFi).
In a recent statement to crypto.news, Kamyshov explained that the ripple effects of import taxes go far beyond traditional markets. “Tariffs often push up prices, which adds fuel to inflation,” he said. “And when inflation ticks up, central banks — especially the Federal Reserve — may be forced to raise interest rates or hold off on expected cuts.”
Tight Money = Tight Crypto Liquidity
Higher interest rates mean a stronger U.S. dollar — and that could be trouble for digital assets. Kamyshov pointed out that when the dollar strengthens and borrowing becomes more expensive, investors tend to pull money out of riskier assets like crypto and move into safer options like bonds or gold.
“This kind of environment reduces liquidity,” he said. “Capital gets harder to access, and DeFi tokens often see outflows.”
Stablecoins Under Pressure Too
Even stablecoins, which are meant to hold steady value, aren’t immune. As the dollar rises, USD-backed stablecoins like USDC, USDT, and DAI become more expensive for users outside the U.S. to acquire or hold — making DeFi participation tougher for global users.
Kamyshov also warned that reduced stablecoin inflows could weaken DeFi platforms like Uniswap, Aave, and Compound. “Lower liquidity means wider spreads and less efficient trading,” he said.
Could Crisis Spark a New DeFi Boom?
Despite the challenges, Kamyshov sees a possible silver lining. If traditional financial systems continue to feel pressure from inflation and government intervention, more people might turn to DeFi as a form of financial self-sovereignty.
“Innovation could thrive in this environment,” he said, highlighting areas like dollar-alternative stablecoins, capital-efficient protocols, and decentralized systems less reliant on centralized monetary policies.
But he also offered a word of caution: “The real question is whether DeFi can evolve fast enough to keep up with a macro environment full of inflation, protectionism, and regulatory twists.
