These are precisely the dynamics we have seen at work in the recent crypto failures, which have sent shockwaves throughout the crypto universe, including in DeFi markets[24] used to build leverage. [25] The inadequate governance of crypto firms has magnified these structural flaws.
But since the crisis broke, integration has reversed. It currently stands at 0.2 on a scale where zero represents full fragmentation. As a result, cross-border risk-sharing in the euro area is almost non-existent.