DeFi Season in Full Swing; Blue Chip Tokens Climbing Up the Ranks

DeFi tokens exploding yesterday with Cream (55.5%), SYN (55%) MTA (46%), 1inch (34%), AAVE (28%), bzrx (26%), SWRV (24%), UMA (22%), and UNI (21%) leading the market.

This had the total value locked (TVL) in decentralized finance (DeFi) at a new ATH above $23.85 bln, DeFi Pulse.

Meanwhile, the market cap of the top 100 DeFi tokens has reached $30 billion.

These gains result in DeFi tokens gaining higher ranking in the entire cryptocurrency market, with Polkadot (DOT) replacing XRP at 4th space, with Uniswap (UNI), Aave, and Synthetix (SNX) particularly climbing up the ranks to become 17th, 18th, and 23rd (now 24th) largest crypto assets by market cap.

Given the development and repricing, DeFi tokens see it won’t be long before several of them join the top 10.

Power of on-chain cash flow

In this past week, HGET (88.8%), CREAM (88%), AAVE (70%), SUSHI (55%), CRV (55%), PEPP (54%), UNI (47%), MTA (39%), 1inch (35%), and RUNE (34%) recorded significant gains.

Cream’s gains are the result of the launch of the road to Cream V2, which aims to become the Iron bank, which “actually *creates* value for tokens like YFI and ALPHA,” which was “previously impossible,” says Kyle Samani, Managing Partner at Multicoin Cap.

YFI, currently trading around $33,420, recently announced the proposal of buying back the crypto asset, and much of the community has come out in support of this.

When it comes to Sushiswap, its TVL has hit the milestone of $2 bln.

The token SUSHI is also enjoying the greens, surging past $7, bringing the market cap of $924 million.

The DEX project has come a long way since its controversial start, steadily growing its liquidity and volume, both of which are also hitting new highs.

The same is the case for fees that have surpassed $2 million on a daily basis. Sushiswap actually incentivizes LP and token holders by charging traders a 0.30% fee on each trade, out of which 0.25% goes to LPs and 0.05% to those staking xSUSHI.

“The power of on-chain cash flow: over 58% of the circulating SUSHI supply is locked in xSushi, earning a double-digit annualized earnings yield. Coins being accumulated on centralized exchanges and moved into on-chain yield-bearing contracts is a welcome development,” noted Max Bronstein, who previously worked at Coinbase.

Still, Sushiswap’s valuation relative to sales has decreased by 40% during all this growth.

DeFi’s stablecoin not stable

Maker is also finally enjoying this uptrend as it retakes its dominant position in the space, currently at 17.84%, with its TVL surpassing a whopping $4.26 bln.

The Ethereum-based MKR is a governance token for MakerDao as well as Maker’s decentralized lending platform. The latest success in the value of the project is attributed to the increase in the supply of its stablecoin DAI.

DAI’s market cap has grown to $1.3 bln as per Coingecko, up from $129.5 mln on July 1st, 2020.

Unlike DAI, other DAI stablecoins are anything but stable with BASED trading at $0.94, AMPL $0.88, DSD $0.79, DEBASE $0.87, SHARE $0.69, ESD $0.57, and BSD $0.33.

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