Today, we are looking at the top three decentralized finance (DeFi) projects and why they should be on your radar.
Among the metrics, we are going to look at price action, which is the most exciting thing in crypto. But that is not the only metric to look at — you can also judge by the number of active users on each project and then this reveals which chains are getting adopted by the masses. This is a key insight to pinpoint which projects have long-term potential and a healthy ecosystem.
1. Solana (SOL)
Solana is making noteworthy strides and reclaiming their numbers in both NFTs and DeFi.
According to Messari, over the past 30 days, the NFT marketplace on Solana has seen a steady upward trajectory with Tensorswap accounting for most of the addresses.
So far, the consumer upside has not quite followed the same pattern in the resurgence of NFTs. But in the DeFi sector though, that is where Solana is really starting to shine. It has seen substantial growth after recovering from the FTX collapse — they definitely took a hit from Sam Bankman-Fried, but it really has not taken long to brush that off and regain its positive momentum.
Now, we know that some of the increases in active addresses is attributed to airdrop season with airdrop farmers coming in to get a piece of the action. But the behavior of the mix of the newcomers and the old schoolers reflects less typical behavior from just airdrops.
We can see from the graph that new users are actually spending more than the Solana veterans — definitely a potential for these new users to stick around for the long term making this growth sustainable.
Overall, Solana is currently experiencing strong adoption trends and their price action is an obvious reflection of that user momentum.
2. Arbitrum (ARB)
Arbitrum’s Total Value Locked (TVL) statistics are towering over its Layer-2 competitors. They also have a short-term incentives program for stablecoins which is able to reverse the downtrend in transactions.
Vertex and Uniswap account for the majority of the transactions on the Arbitrum platform, but there is definitely a lot of potential for growth as they are getting back into the upswing in price, and we would love to see it continue down this path.
3. Sui (SUI)
Another crypto to watch that just managed to dig out of an old downward trend, and is now starting to climb back up the charts is Sui.
Sui network hit the crypto space about seven months ago and did not go the full traditional route of liquid staking. It utilizes lending DApps in a DEX to get started. In that short time, Sui managed to bridge over $100 million in USDC.
Putting it on the investor radar as a real contender, its total value locked has been a vertical wall in the last 60 days, making it a notable find that is being listed on a lot of crypto reviews.
Overall, these crypto ecosystems are set to explode in 2024, and we have seen it happen already with over $30 billion being transferred across a hundred different chains in the last year. As always, please do not ape into these tokens just because it was covered in this article. Do a more extensive research on the matter at hand before making any investment decisions.