Uniswap’s UNI Becomes the Largest DeFi Token, Ready to Join the Top 10 Cryptocurrencies
While Bitcoin and Ether are currently struggling to make huge moves after breaking their several all-time highs in January, DeFi tokens have taken charge. The broad cryptocurrency market is experiencing the red, but DeFi tokens are using this time to enjoy an uptrend.
The biggest gainer among these tokens today is ALPHA, which is up 54%, followed by INDEX (50%), BADGER (38%), PICKLE (37%), and LUNA (32%).
So far, in 2021, the leading DeFi tokens include BAO (1,264%), ALPHA (644%), PERP (382%) with BAGER (255%), MTA (227%), CRV (216%), AAVE (200%), and UNI (188%) some of the notable mentions.
DeFi recently got into the mainstream limelight on Wheel of Fortune as well.
Legend. RIP Maxis. Trust me I love Bitcoin, but it’s only part of the revolution. https://t.co/q9kpr71W3y
— Mike Novogratz (@novogratz) January 26, 2021
The total value locked (TVL) in DeFi also continues to rise, currently at $25.5 million, near the ATH, with Maker having an over 18% dominance in the space.
Maker, Aave, and Compound are currently leading DeFi in terms of TVL. But Uniswap is the largest DeFi token at 13th place with a market cap of $4 billion.
Other DeFi blue chips climbing up the ranks and making their way into the top 10 cryptocurrencies include AAVE AAVE 3.15% Aave / USD AAVEUSD $ 317.57
$10.003.15% Volume 377.16 m Change $10.00 Open $317.57 Circulating 12.93 m Market Cap 4.11 b 2 mon Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 2 mon Software Provider Temenos Enables Crypto Trading for Banks 2 mon Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov which is at 15h spot and SNX at 23rd place SNX -1.62% Synthetix / USD SNXUSD $ 9.49
-$0.15-1.62% Volume 144.34 m Change -$0.15 Open $9.49 Circulating 114.84 m Market Cap 1.09 b 2 w Ethereum Scaling Solutions Continue to Record User Growth in Ongoing Boring Market Condition 3 w Over 30% of ALPHA’s Circulating Supply Is Now Being Staked & Earning 13% APY 3 w SNX Leads the DeFi Bounce as Team Focuses on Layer 2 Developments and Evolution of ETH Wrapper .
While Uniswap gains strength ahead of its V3 launch, people are pointing to the DEX as “having no value accrual.” While that may make some question the dominating DEX, to Ryan Watkins of Messari, growth is more important than capturing fees. Watkins said,
“Even if a token does implement some kind of fee capture it’s much better to reinvest those earnings rather than distribute as dividends. UNI implicitly does this by not extracting fees from LPs (fee switch off).”
“If a token is designed from the ground up to be an integral part of the protocol and rewarded for being so. It removes the future risk of attempting to jam new governance token economics into the economy of an already successful protocol after the fact.”
Meanwhile, Sushiswap continues to introduce features that improve SUSHI value accrual SUSHI 3.82% SushiSwap / USD SUSHIUSD $ 8.33
$0.323.82% Volume 248.81 m Change $0.32 Open $8.33 Circulating 127.24 m Market Cap 1.06 b 2 d Only 2.5% Supply Auctioned, Big Chunk Reserved to Reward Users, Explains YGG on its MISO Sale 2 d Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts 1 w Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain . The project that has come a long way from being just a copycat of Uniswap distributes its fees directly to SUSHI stakers, unlike Uniswap, where the fees on trading volumes go to a community-managed treasury.
While Uniswap is the leading the DEX volume by recording $2 bln to $5.5 bln every week and accounting for 47.7% share of the market, Sushiswap is fast catching up and chipping away at Uniswap’s dominance by increasing its DEX volume market share from 8.51% in late Sept. 2020 to now nearly 25%.