The DeFi ecosystem has seen an explosion in total value locked (TVL), surpassing the GDP of many countries and currently exceeding $52 billion in investments. This value is supported by the infrastructure layer-1 blockchains, which serve as the foundation of the DeFi system. Decentralized exchanges (DEX) play a crucial role in connecting assets and protocols, acting as the hearts that keep this financial body alive.
In the realm of DEX, there are single-chain and multi-chain decentralized exchanges that operate under the rules of various infrastructures. Notably, three decentralized exchange protocols have stood out among their competitors: Uniswap (UNI), PancakeSwap (CAKE), and Orca (ORCA). According to data from DefiLlama, these protocols are positioned for growth in 2024.
Uniswap, which initially originated on Ethereum (ETH), now supports 12 chains and boasts a $4.06 billion TVL. The protocol has experienced a remarkable surge of 69% in TVL in the past 24 hours, alongside steady growth in the past week. With UNI’s market cap nearly reflecting its TVL and a current token price of $5.98, the protocol exhibits a balanced valuation.
PancakeSwap, with a TVL of $1.50 billion, has cemented its position as the heart of BNB Chain (BNB) and enjoyed significant success as a launchpad for play-to-earn projects. With support for 8 other chains and a token trading at $2.48, PancakeSwap presents an intriguing buying opportunity, evident by its 0.45 MCap/TVL ratio.
Orca has emerged as a promising decentralized exchange within Solana’s (SOL) DeFi ecosystem, experiencing a substantial 169% increase in TVL. Currently in the 10th position by total value locked, Orca has $179.13 million worth of Solana-based tokens invested in its liquidity pools. Despite showing signs of being overbought, with a market cap twice as high as its TVL and trading at $8.47, Orca remains a decentralized exchange token worthy of attention for 2024.
Overall, the success of decentralized exchanges is closely tied to the infrastructures they support, and as long as the demand for DeFi and trading volume continues to rise, these protocols are poised for growth. It’s important to note that the content here should not be considered investment advice, as investing in the crypto industry is speculative and carries inherent risks.
