The term “blue-chip,” borrowed from traditional finance, has found its place in the DeFi world, referring to governance tokens of top decentralized finance protocols.
These tokens, including UNI, AAVE, COMP, MKR, CRV, SNX, LDO, and DYDX, have established themselves as leaders since their launch during DeFi Summer 2020.
Uniswap (UNI) tops the list with a market cap of $4.39 billion, driven by robust developer activity and a strong correlation with Ethereum. Aave (AAVE) follows closely, demonstrating positive price movement and high transaction volumes. Maker (MKR) continues to maintain stability with substantial developer engagement, while Lido (LDO) stands out for its growth potential. With a low market cap to TVL ratio, LDO appears undervalued, although it carries higher risk (NFA).
https://twitter.com/jayejone/status/1829936579365814474?t=M2eYcr6K35qcJYZGtxrAIg&s=19
DeFi Collective Market Cap Hits $10.20 Billion
The collective market cap of these DeFi blue-chip tokens has surged from $7.12 billion to $10.20 billion over the past year—a testament to the strong market presence and growing investor interest in these assets.
However, when comparing the relative strength of crypto narratives against Bitcoin in August, it’s evident that all narratives are lagging behind BTC’s growth. Among them, Blue-chip DeFi and DePIN have performed relatively better. According to Coin98 Analytics, these two categories, along with DeAI and Web3 Gaming, have shown stronger performance compared to the overall market over the last 30 days.
Relative strength of crypto narratives against Bitcoin in the last 30D
In accordance with the statistics, all narratives seems to be lagging behind BTC growth, with Bluechip DeFi and DePIN performed better compared to the others pic.twitter.com/OlNVmO0Efz
— Coin98 Analytics (@Coin98Analytics) August 30, 2024
This data highlights the resilience of DeFi blue-chip tokens and the ongoing interest from investors, even as the broader market grapples with Bitcoin’s dominance. As these protocols continue to innovate and adapt, their influence within the DeFi ecosystem is expected to grow, attracting both new and seasoned investors alike.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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