The rise of DeFi leaders Aave and Lido is fueling growth in the sector, paving the way for increased demand for other DeFi-focused altcoins.
DeFi ecosystem giants Aave and Lido have brought the growth in the sector back to the agenda by exceeding $70 billion in net deposits in December. Aave’s $34.3 billion leadership and Lido’s $33.8 billion TVL performance clearly show that decentralized finance (DeFi) is still on investors’ radar. The success of these two protocols suggests that demand for other DeFi-focused altcoins may also begin to increase.
The total value locked (TVL) in the DeFi ecosystem is expected to increase by 107% to $185 billion in 2024, while interest in decentralized applications is at its peak. In particular, the double-digit growth rates in revenues of Aave and Lido make not only these two protocols, but also the rising stars of DeFi attractive to investors.
The increasing demand for protocols that offer staking, lending, and decentralized exchange services among DeFi projects shows that this sector is reaching a wider user base.
This growth trend could also increase interest in small and medium-sized DeFi projects. For example, altcoins with low TVL and innovations in the staking or lending market could be potential future opportunities for investors.
Is a new wave on the way?
According to experts, this growth in the DeFi ecosystem could trigger a surge in value across a wide range of DeFi altcoins. Projects that are expected to increase in staking revenues in particular may begin to appear on investors’ radars. This suggests that a new wave of demand could be on the horizon in the DeFi-focused altcoin market in 2024.
Here are some DeFi-focused altcoins:
Aave (AAVE)
Read DAO (LDO)
Uniswap (UNI)
SushiSwap (SUSHI)
Compound (COMP)
Yearn.finance (YFI)
Maker (MKR)
Synthetix Network (SNX)
Curve DAO (CRV)
Balancer (BAL)
PancakeSwap (CAKE)
The information contained herein does not contain any investment advice.