Competition Rises Between Maker (MKR), LEND and SNX


Aave and Synthetix passed MakerDAO’s Maker with market value as the DeFi industry continued to grow. Decentralized Finance (DeFi) tokens continue to make stiff movements on price lists and compensate for Bitcoin’s low volatility, which has reached its highest level in the last three years.

The Aave (LEND) and Synthetix Network (SNX) tokens have outperformed the MakerDAO (MKR) token as they continued to rise.

Defi Tokens Create New Summits Everyday

The decline was short, and MKR has now taken back its position against LEND, SNX and Compound (COMP) and is currently ranked 28th on Coinmarketcap with a market value of $ 45 million.

LEND is rapidly moving towards the all-time high and performs better than MKR. As interest around the growing DeFi industry continues to grow, DeFi tokens are making their mark on 2020.

Tokens do not directly bring monetary benefit to the owner, except for speculative earnings, but the protocol allows them to vote in the decision-making process. Some investors see this as an incentive or long-term bet for the success of the DeFi industry.

Investors Believe In Long-Term Defi Growth

The concept behind LEND is somewhat similar to MKR, but since the related tokens vote for users in protocol changes, they differ from the way they lend and create credit opportunities. This is important for MakerDAO, which requires DAI to track Ether’s (ETH) price to ensure that it is fixed in US dollars.

SNX is the token of Synthetix, a decentralized cryptocurrency exchange where users can trade in-chain assets fixed to the value of assets such as gold and stocks. Basically, SNX holders are encouraged to pledge their tokens to create these tradable assets.

Recently, Synthetix has announced a new decentralized asset management platform called dHedge. Aave also adds new features to its protocol. Aave CEO explains these features as follows:

“Aave will enable the credit party’s credit limit, where A party can transfer credit limits to B for borrowing. All this will be possible with a legal agreement made through OpenLaw. For example, a loan representative can be a party that wants to create more loans, and a borrower, NGO, government, institution, etc. can. ”

As the DeFi area continues to grow and profit, despite the initial currency offer (ICO) defeat in 2017, symptoms of a similar bubble scenario begin to emerge, and several projects reaching three-digit values ​​emerge each week. Despite these signs, institutional investors seem to focus on this new financial world.


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