Like metaverse cryptocurrencies, DeFi projects are not having a successful year in the markets. The implications of the 2022 bear market and the shadow of piracy continue to handicap the industry. However, investors still believe in DeFi and believe that many altcoins in the sector are expected to boom in the coming years.
Decentralized finance, or DeFi, represents the most advanced application of cryptocurrencies in terms of usage. Although still young and vulnerable, the sector has gained interest despite being a frequent target of hackers, as evidenced by record losses from such attacks of $2 billion in 2022. However, the idea and potential of the sector continue to be highly valued by many analysts .
In 2023, DeFi projects saw a revival, but this revival did not fully meet the expectations of investors. However, many predict that several cryptocurrencies could see a significant rally if the “alt season” takes hold. In this article, we decided to highlight three cryptocurrencies that seem to make the best use of this opportunity.
Aave (AAVE): DeFi cryptocurrency hub
Simply put, Aave is a decentralized lending and borrowing protocol. It is the project with the highest TVL among credit protocols in the cryptocurrency world. Earlier this year, Aave launched the latest iteration of its platform, version 3, better known as “Aave V3”.
Compared to V2, Aave V3 introduces more sophisticated risk management tools, improves capital efficiency and decentralized liquidity, and reduces gas fees by 25%. Innovations include optimized flash loans and an expanded eMode that offers up to 97% leverage for Ethereum assets.
In 2023, AAVE ($127.80) is up 126.31%, but still remains -82% from its high of $661.69.
To go further: Aave predictions for 2025 and 2030.
Phantom: Growth of more than 200% in 2024?
Technical analysis expert Ali Martinez recently expressed his opinion on the graphic situation of Phantom. He claimed in a post on This prognosis is, however, conditional on the confirmation of technical training on “W”. Mr. Martinez also noted that Fantom has formed a “double bottom” and that if the price breaks the resistance located around $0.57, it could potentially rise to $1.60.
Fantom is a blockchain focused on developing solutions for decentralized financial applications (DeFi), smart contracts and decentralized applications (DApps). It excels in its ability to perform fast and cheap transactions, a core asset in the DeFi sector where speed of execution and cost reduction are paramount.
Synthetix (SNX): extending its rise
Synthetix (SNX) is one of the few DeFi cryptocurrencies that saw a noticeable increase in 2023. On a year-over-year basis, SNX achieved a total growth of 210%. And for many experts, the very good performance of crypto Synthetix should continue in 2024, especially since the growth margin compared to ATH (-85.50%) is quite high.
In early December, Synthetix announced the end of inflation of its SNX token in accordance with the SIP 2043 proposal. This change marks a transition from an inflationary economic model to a more sustainable approach. This decision follows the observation of the declining effectiveness of inflation as an incentive for betting. It aims to simplify the staking process and introduces new strategies such as buybacks and token destruction funded by transaction fees.
Moral of the story: You shouldn’t put all your crypto eggs in one basket.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.