Altcoin Roundup: DeFi token prices are down, but utility is on the rise

cointelegraph.com:

The decentralized finance (DeFi) sector has been sitting in the backseat since whipping up a frenzy in the summer of 2020 through the first quarter of 2021. Currently, investors are debating whether the crypto sector is in a bull or bear market, meaning, it’s a good time to check in on the state of DeFi and identify which protocols might be setting new trends.

Here’s a look at the top-ranking DeFi protocols and a review of the strategies used by users of these protocols.

Stablecoin-related DeFi protocols are the cornerstone of the DeFi ecosystem and Curve is till the go-to protocol when it comes to staking stalbecoins.

Data from Defi Llama shows four out of the top five protocols in terms of total value locked (TVL) are connected to the creation and management of stablecoins.

It’s important to note that while these protocols have emerged on top when it comes to TVL, the value of their native tokens for the most part are significantly down from their 2021 all-time highs.

The main takeaway is that engaging with the stablecoin aspect of the DeFi market through staking and farming has offered steady yields while also earning the governance tokens for these platforms as an added bonus to help mitigate the drop in token values.

As it stands now, stablecoins play an integral role in the overall healthy functioning of DeFi which continues to expand as newer protocols like Frax Share and Neutrino climb the TVL ranks amidst the increasing number of interconnected blockchain networks.

Lending platforms are another key component of the DeFi ecosystem and one of the key features that investors can interact with even during a bear market. AAVE and Compound are the current leaders with respective TVLs at $12.09 billion and $6.65 billion.