DeFi
DeFi Blue Chips Are Poised to Explode Despite Record Valuations » The Merkle News
Despite a delay to 2023, DeFi 1.0 assets are now positioned for a significant breakthrough. Challenge Star stocks like AAVE, Maker (MKR) and Lido (LDO) are hitting record revenues even though their valuations remain low.
This trend is driven by several factors, including a pro-crypto US landscape, institutional adoption of ETH via ETFs, an increased focus on fundamentals, and a shift of capital towards quality assets in a risk-averse market.
Project 1: AAVE
AAVE has quietly doubled its total value locked (TVL) to $21 billion this year. Key metrics, such as active loans, revenue, and fees, have all shown significant growth. Despite these strengths, AAVE has been stuck in a bear market range for the past 2.5 years and is down more than 10% since the start of 2024. The resilience of its fundamentals positions AAVE for a potential breakout as market conditions improve.
Project 2: MKR
Maker (MKR) is the driving force behind DAI, the third-largest stablecoin by market cap. In the first half of 2024, MKR generated 40% of all DeFi profits on Ethereum, consistently earning over $15 million in monthly revenue. Upcoming catalysts include the “End Game” upgrade and a $1 billion tokenized treasury initiative, which could further strengthen its market position and revenue generation.
The 3 big names in DeFi: $AAVE, $MKR, $LDO
DeFi flagships hit ATH revenues despite historically low valuations.
While many sectors have skyrocketed in 2023, DeFi 1.0 has been left behind.
However, a breakout could be imminent, caused by:
– A growing pro-cryptocurrency landscape in the United States
-… pic.twitter.com/KmkgMXoAOL— Crypto, Distilled (@DistilledCrypto) July 16, 2024
Project 3: LDO
Lido (LDO) is playing a critical role in Ethereum adoption, managing over $27.5 billion in staked ETH. Staking has become a critical liquidity sink, with staked ETH outpacing new issuance by 20x. LDO maintains a 60% market share in liquid staking, the largest DeFi sector. Despite a 40% drop earlier this year due to SEC allegations, LDO is poised to recover. Historically, regulatory FUD often marks major lows, and positive developments from the SEC, along with the launch of ETH ETFs, could trigger a significant upside.
In summary, AAVE, MKR, and LDO stand out as key opportunities within the DeFi sector. Their strong fundamentals and growth potential position them as attractive investments as the market shifts toward quality assets.
Disclosure: This is not trading or investment advice. Always do your research before purchasing cryptocurrency or investing in any service.
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