When we talk about blue chip DeFi altcoins, attention immediately begins to gather in the cryptocurrency market. Surprisingly, tokens associated with leading decentralized finance (DeFi) applications are attracting attention. It shows remarkable resilience in the face of a bearish market. Several blue-chip DeFi tokens have witnessed notable gains despite the current downturn in the market.
Blue-chip defi altcoins: CRV leads the rise
CRV for blue-chip defi altcoins is up over 21% in the past week. Accordingly, it was at the forefront of this upward wave. A major catalyst for this surge has been the issuance of crvUSD, a stablecoin recently launched by Curve Finance. Notably, crvUSD is backed by a basket of assets including Bitcoin (BTC), Ethereum (ETH) and ETH liquid staking derivatives.
There are cryptocurrencies beyond CRV among blue chip defi altcoins. On the other hand, governance tokens also made impressive weekly gains. Tokens associated with Maker (MKR), Frax Share (FXS), and Chainlink (LINK) also increased. Accordingly, it recorded gains ranging from 8% to 9%. CoinGecko data indicates that the broader DeFi lending and borrowing sector is experiencing growth. It also reveals that most tokens have traded in positive territory over the past seven days.
Real world assets and liquid staking
This revival within blue-chip DeFi altcoins can be attributed to the increasing use of real-world assets (RWAs) and liquid stake tokens as collateral in these DeFi applications. RWAs represent traditional financial instruments such as tokenized bonds and corporate debt. Additionally, according to DeFiLlama data, it is noteworthy that total deposits in RWA asset protocols have increased.
Similarly, CoinGecko’s recent report is notable. It emphasizes the total deposits in liquid staking protocols. Accordingly, it has increased by 5,870% since January 2023. Thus, it shows that it reached 919.0 million dollars as of the end of August. Liquid staking derivatives (LSDs), like Lido’s stETH, offer users a tokenized representation of staked Ethereum positions for use in the DeFi ecosystem. Accordingly, this plays an important role in terms of growth among blue-chip DeFi altcoins.
Market challenges continue
Despite resilience within blue-chip DeFi altcoins, the broader cryptocurrency market has faced headwinds primarily due to risk-off sentiment in global markets. Last week, Bitcoin fell 3.2% and Ethereum fell 2.6%. These declines are largely attributed to a rise in U.S. Treasury yields, which have reached levels not seen since the 2007 financial crisis.
Higher returns lower the opportunity cost of investing in cryptocurrencies and stocks. Accordingly, when we look at it as cryptokoin.com, this situation caused declines in these asset classes. Total crypto market cap contracted by 2.4%. Accordingly, it decreased to 1.084 trillion dollars. It also lost $27.6 billion in value during the week. Let’s see what developments await us other than blue-chip DeFi altcoins.
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