The DeFi ecosystem has attracted a lot of attention lately. Obviously, this space is trying to blend in with the traditional financial landscape. As things are slowly becoming mainstream, regulatory authorities have been bombarded with a number of challenges. To broaden their understanding of the ecosystem, they have been taking various steps.
According to a recent Forbes Report, for example, the US Securities and Exchange Commission has struck a deal with Blockchain analytics firm AnChain to help monitor and regulate the “turbulent” DeFi industry. The ups and downs are an integral part of the growth and maturation phase of any industry. In hindsight, instability and fluctuations become almost inevitable.
So is it lucrative for market participants to capitalize on the DeFi turmoil?
In addition to popular tokens like UNI, LUNA, AVAX, and AAVE, lesser-known tokens like KAVA and RAY have also appreciated lately. In fact, according to Messari data, KAVA managed to achieve a 56.6% return for its HODLers over the last month. At the same time, RAY investors obtained a 236.5% profit in the same time window.
The growth of these alts has been, in general, organic in nature. The price pumps have been accompanied by adjacent rises in the trading volume of the respective highs. Also, people in the community have been actively talking about these tokens on social platforms, which has caused social sentiment to boost.
However, does the future look bleak?
Fundamentals, to a large extent, dictate the long-term viability of any given project. As such, developments in the ecosystems of the respective alts have been happening at a rather impressive rate lately. Kava Labs, for example, is on the cusp of releasing your new cross-chain liquidity hub for DeFi [Kawa Swap].
Kawa Swap would allow users to exchange assets between different blockchains and stake their funds on market-making pools. Also, Kava and Simplex [una institución financiera con licencia de la UE] They are working on the first ramp from fiat to DeFi.
Similarly, Raydium is already Solana’s largest decentralized exchange. Basically he adds liquidity from his own funds, but at the same time he is the biggest market maker on Serum, the exchange based on Solana’s order book. One of Raydium’s main objectives is to boost the Solana ecosystem by attracting more projects and users.
To do this, the team had created AcceleRaytor a couple of months ago. Today, a large number of projects on the same launch pad are quite popular and have had oversubscribed releases. Raydium’s roadmap is also full of some interesting plans. For example, it plans to launch its stable exchange pools, advanced order routing protocol, and integrate Wormhole for the foreseeable future.
In an attempt to help Solana grow over the months, Raydium has also been able to help himself. In hindsight, RAY’s future, like SOL’s, looks bright enough right now.
The right portfolio mix
The DeFi space is set to grow in the coming years, and when that happens, the valuation of all these tokens would also be at their respective peaks. Furthermore, as highlighted in an article, the DeFi economy continues to develop on the Ethereum network.
So yes, if investors are HODLing Solana and Ethereum at this stage, adding a handful of DeFi tokens to their respective portfolios could prove lucrative in the long run. All in all, market participants can definitely use this turbulent phase to their advantage.
This is a machine translation of our English version.
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