Just That DeFi Altcoin Explodes: Outperforms Ethereum!


This year, the DeFi Pulse Index (DPI), a benchmark that includes 18 DeFi altcoin projects, has increased by 300% in dollar terms, while Ethereum has increased by over 540% in the same period. But among all its rivals, an altcoin surpasses Ethereum. Let’s take a look at interesting statistics for 2022 predictions.

DeFis failed to surpass layer one blockchains

According to data from DeFi Llama, TVL among DeFi altcoin projects this year started with a total valuation of around $20 billion; Now, at the end of the year, that figure is $250 billion. However, despite the impressive growth in usage and adoption, most DeFi blue chip protocols lag behind Ethereum and other Tier 1s in price action. For example, the DeFi Pulse Index (DPI), a benchmark that includes 18 DeFi altcoin projects on Ethereum, including Uniswap, Aave, Sushi, Compound, Synthetic, Yearn, and Balancer, is up 300% in dollar terms this year. For comparison, Ethereum, the second largest cryptocurrency in the market, has gained over 540% over the same period.

DeFi-focused altcoin projects return more on dips

Uniswap, the largest decentralized exchange (DEX) in crypto, has dropped over 58% from ATH and has consistently underperformed Ethereum for most of the year. Aave, Maker, Sushi, Yearn, Synthetix and Compound also fell 58%, 61%, 57%, 65% and 77% from ATH levels, respectively.

Only one DeFi altcoin project surpasses ETH

Surprisingly, despite an unstable token launch in 2020, Curve, the largest DEX on Ethereum, is the only protocol among the blue chips to outperform Ethereum this year. It started the year at $0.62 and is currently trading at $5.58, which is an increase of nearly 900% year-to-date.


As the pace of Web3, side-chain, and Layer 2 scaling solutions like Arbitrum, Optimism, ZK-Sync and ZK-Starks are on the horizon, Ethereum blue chips will showcase their benefits and make a new case for crypto investors, according to Stefan Stankovic, whose analysis we shared at Somanews. There will be ample opportunity for