DeFi boom leaves former altcoin darlings in the dust — But for how long? – CointelegraphSeptember 7, 2020
The rapid popularity and investment growth observed in the Decentralized Finance (DeFi) sector has reflected heavily on the price charts with DeFi and yield-related tokens like Yearn.finance (YFI), Aave (LEND), and others rallying to their all-time highs in 2020. YFI alone has surged 10x since listing.
In fact, most high-profile DeFi-related tokens have outperformed Bitcoin (BTC) and other altcoins by a long stretch. Even governance and infrastructure projects like Chainlink (LINK) and UMA, the latter of which became one of the largest DeFi protocols in September, were eclipsed by DeFi tokens.
As so, with all eyes set on DeFi projects and smart contract platforms like Ethereum (ETH) and Cardano (ADA), a few sectors in the cryptocurrency world appear to have been left behind. Most noticeably, coss-payment platforms like XRP and Stellar (XLM).
Comparison of profits and losses since December 2018. Source: CaneIsland Digital Research
Although smart contract platforms like EOS have made modest gains, it has failed to keep up with competitors like Ether, which has been the epicenter of the 2020 DeFi craze (as most DeFi-related tokens are Ethereum ERC20 tokens).
Ripple loses its allure
Among the top-10 coins by market cap XRP has been one of the worst performers in 2020, having recently lost its position as the third biggest altcoin to Tether (USDT). Ripple is currently the fourth biggest cryptocurrency with a market capitalization of roughly $10.6 billion.
While XRP has risen 20%