Two Ethereum Altcoins Leading New Resurgence of DeFi, According to Glassnode
According to blockchain analytics firm Glassnode, two coins from the Ethereum (ETH) ecosystem are driving a new resurgence in decentralized finance (DeFi). Glassnode’s DeFi index, consisting of the eight largest DeFi tokens by market cap, has outperformed Ethereum over the past two months. The primary drivers of this trend are the stablecoin governance token Maker (MKR) and the native currency of the smart contract DeFi protocol Compound (COMP). Recent fundamental developments for both projects, such as the departure of Compound’s founder and the activation of MakerDAO’s Smart Burn Engine, have contributed to their strong performance.
Key Points:
- Glassnode’s DeFi index has outperformed Ethereum in the past two months
- Maker (MKR) and Compound (COMP) are leading the trend
- Recent fundamental developments have contributed to their strong performance
- Compound’s founder announced his departure and the launch of a new project
- MakerDAO activated its Smart Burn Engine, causing a surge in MKR’s price
The resurgence in decentralized exchanges (DEXes) is another notable trend highlighted by Messari. The relative share of volume traded on DEXs has increased from 3.75% at the beginning of June to 29.2% today. This renewed interest in DEX activity indicates a shift towards decentralized trading and highlights the growing popularity of DeFi.
Hot Take:
The performance of Maker (MKR) and Compound (COMP) in the DeFi space demonstrates the importance of fundamental developments in driving the success of crypto projects. As decentralized finance continues to gain traction, the rise of DEXes further emphasizes the growing demand for decentralized trading platforms. This new resurgence in DeFi showcases the potential for innovation and growth within the Ethereum ecosystem.
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