Earning money from holding certain crypto assets is an objective many people pursue. More often than not, Bitcoin is the safest asset to hold long-term, despite it being notoriously volatile. However, DeFi tokens are also going through a boom, and their values are skyrocketing – for now.
Melon Protocol (MLN)
People who haven’t dabbled in DeFi may not be too familiar with the Melon Protocol project. This protocol is designed for asset management on Ethereum. Users can create, manage, and invest in decentralized funds composed of ERC20 tokens and Ether. The native MLN token is designed to align incentives of users, holders, and maintainers by coupling the value with network usage.
To use the platform, one doesn’t need to hold MLN, as fees are paid in ETH. Melon’s asset management gas fees are converted to MLN and burned by the smart contract.
Over the past 90 days, the value of MLN has increased by over 106%. A very impressive figure that coincides with the growth in total value locked in Melon. Today, just under $900,000 is locked, and a push to $1 million and more can materialize and any given moment.
Everyone in the cryptocurrency world will be all too aware of what MakerDAO offers. It has become a go-to platform for earning interest on one’s crypto holdings. The MKR token’s value has seen a 147% increase in value over the past three months.
Considering how this platform has been around for a while, such growth may come as a bit of a surprise. MakerDAO still has the highest amount of locked funds on the Ethereum blockchain. With just over $492 million in smart contracts, the protocol continues to dominate the DeFi landscape.
Kyber Network (KNC)
Unlike the other offerings on this list, Kyber Network operates as an on-chain liquidity protocol. With no order books in place, the objective is to return the best price for different reserves contributed to the liquidity pool. The native KNC token can be staked to earn rewards and participate in governance.
Following a healthy 165% increase in value over the past 90 days, the overall appreciation for Kyber Network appears to be rising. Its liquidity pool consists of roughly $6.9 million in different assets, which is a healthy figure overall. Breaking higher will prove challenging, but it is doable.
Loopring can best be described as a non-custodial exchange protocol that makes use of zero-knowledge technology. Its zkRollup release has brought major scalability improvements to the Ethereum blockchain. All user deposits are handled by zkRollup smart contracts and traded off-chain through native relayers.
With over $8.4 million in locked value, Loopring is still on the right path. This also explains why the LRC token price has shot up by over 237% recently. One aspect worth highlighting is how the total value locked on this platform has been decreasing slightly, yet there’s no reason for it not to pick up again.
Competing with other Ethereum-based lending offerings is never an easy task. Even so, Aave seems to be doing very well for itself as of late. One selling point is how interest starts accruing as soon as a user makes a deposit. Removing the waiting time from the equation will always be a major draw for a lot of people.
Over the past 90 days, the value of its native LEND token – used for governance – has gained over 383% in value. The platform now also has over $104 million in total value locked, further confirming their approach to DeFi remains of great interest to a lot of people.
To some, it may seem as if this non-custodial token exchange protocol has been around for ages. Bancor has been a very successful token sale many years ago, and the developers have made significant progress in terms of building up the protocol itself. The native Bancor Network Token, or BNT, helps connect all other tokens in the network to enable instant trading.
As Bancor continues to grow and evolve, its token price has shot up by 410% in the past three months. This is despite a steep drop off in total value locked since early June, although the project appears to be recovering quite well.
But What About Bitcoin?
Percentage-wise, Bitcoin performed worse than all of these assets. It only notes a 81% gain in the past 90 days. However, one BTC is worth a lot more than any of these DeFi tokens, even if they gain over 200% in value. As such, Bitcoin remains the dominant force, but DeFi tokens can be worthwhile in terms of portfolio diversification.