![]() ![]() The same is true of the emerging and rapidly changing DeFi sector, where the term is often reserved for only the oldest, largest, and most established protocols in space. These include Amazon, Microsoft, Apple, Nike, Coca-Cola and other big names. In the traditional stock market, the term “blue chip” is often used to refer to companies that seasoned investors view as companies with solid fundamentals that have been proven over time and existence. Aave, Maker, Sushi, Yearn, Synthetix, and Compound are also down 58%, 61%, 57%, 65% and 77%, respectively, from their ATHs. Uniswap’s UNI, the largest decentralized exchange (DEX) in the crypto space, is down more than 58% from its ATH and has consistently trailed Ethereum for most of the year. Interestingly, DPI – which tracks the performance of the entire crypto market – grew by around 300% by 2021, with incredible accuracy. Measured differently, the ETH price was only 20% lower against its ATH from $ 4,878 in November, while the DPI was down more than 55% against its ATH in May. In the meantime, ETH has grown by more than 540% in the same period.ĭPI in USD (blue line) and Ethereum (red line) | Source: Coinecko Despite the impressive growth in usage and acceptance, most blue-chip DeFi protocols lag behind Ethereum and other Layer-1s in price movement.Īccording to index DeFi pulse index (DPI), a benchmark that spans 18 blue-chip DeFi tokens on Ethereum – Uniswap, Aave, Sushi, Compound, Synthetic, Yearn, and Balancer – is up 300% this year. While 2021 is sure to be a great year for crypto holdings, in retrospect it looks like investors have seen better returns with the two largest cryptocurrencies (Bitcoin and Ethereum) compared to most DeFi blue chips.Īccording to DeFi Llama, the Total Locked Value (TVL) for DeFi logs was around $ 20 billion at the beginning of the year and is currently at $ 244.27 billion. Most blue-chip DeFi tokens, however, are more than 50% below the all-time high (ATH) they set this year. ![]() DeFi has had an explosive year in terms of growth and user adoption. ![]()
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