The decentralized finance (DeFi) sector has undoubtedly been the hottest facet of the crypto space in recent times, with the total assets locked into DeFi platforms skyrocketing sevenfold in just a few months from $1 billion at the beginning of June to $7.4 billion currently. Likewise, the native tokens associated with major DeFi platforms have become the most lucrative assets in the crypto space.
Essentially, just like major crypto exchanges including Binance, Huobi, and OKEx have native tokens, and those native tokens can act as a proxy for the popularity of a particular exchange, major DeFi platforms have native tokens too, and these native DeFi tokens have been surging as these platforms become more successful.
Perhaps the biggest success story is Aave (LEND), which was worth just $0.0035 about a year ago in September 2019. Since then, Aave (LEND) has exponentially increased, and this exponential rally continues to this day. Now Aave (LEND) is worth $0.8086, meaning it has rallied an astonishing 23,000% in just under a year.
The reason for this rally is obvious. The Aave platform has become the #1 DeFi platform, with a total value locked of $1.5 billion, which exceeds Maker’s total value locked of $1.44 billion. Therefore, as the Aave platform rockets to popularity, the Aave (LEND) token is rocketing in value as well.
Likewise, Yearn.Finance (YFI) has seen an incredible rally in the short time it has existed. In late July when Yearn.Finance (YFI) launched it was worth $810, and now one month later it is worth $17,900, a rally of 2,100%. Simultaneously, the Yearn.Finance platform is rocketing towards $1 billion total value locked.
Thus, native DeFi tokens are becoming the hottest assets in the crypto space, especially Aave (LEND) and Yearn.Finace (YFI), and it seems to be more than a speculative pump, since the proliferation of DeFi is a strong fundamental that is driving these tokens upwards. Considering that, it seems there is alot of money to be made on native DeFi tokens, at least for the short term.