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Ethereum based DeFi tokens are skyrocketing up to 2,000%

  • Ethereum-based DeFi tokens are booming, as showcased by the newest one, the META token (MTA), which has gained about 2,000 % since its launch two days ago.
  • YFI has made 2,000% profit in less than 24 hours, while LEND has increased by over 1,500% since the beginning of the year.

mStable, an Ethereum-based DeFi protocol (ETH), launched its token Meta (MTA) on 18 July this year. The hype surrounding the release was huge, and within just under half a day the token traded at 16 times its original value at $0.15. At the time of its launch, MTA investors received 1,000% of their original investment, with the token price climbing even higher.

At the time of publication, the META token is trading at $3.64, with gains of 9.64% in the last 24 hours and gains of over 2,0000% since its introduction. Messari researcher Ryan Watkins stated via his Twitter account that the token was launched with a new procedure known as “IDO” or initial decentralized exchange offering. Watkins wrote the following:

MTA now trading at 16x its $0.15 seed price. The dynamics around the offering were much more fair, but still the fomo drove the price up far higher than any other IDO so far. I wonder if most people would’ve ended up paying less in the original offering at this point.

Ethereum’s booming DeFi sector delivers high returns

While impressive, MTA’s rise is far from unique. YFI token of the yearn.finance protocol also registered a 2,000% gain in less than 24 hours from its launch. According to yearn.finance, the YFI token had no initial value and no pre-mined supply. At the time of publication, the price of the YFI was trading at $1,383 with a 54.79% gain after an initial value of $0. Another notable case is the LEND token of the Aave protocol. As can be seen in the graph below, the token has earned 1,500% over the last year which makes it one of the best investments of 2020.

The superior performance of LEND and the other DeFi tokens mentioned above goes hand in hand with the exponential growth of Ethereum’s DeFi sector. Following the crash of the sector in March, Ethereum’s DeFi exceeded a total value of $2 billion recently. Investors seem to be driven to seek the best returns and unlike Bitcoin, which has kept its price stable over the past month, the DeFi sector looks quite appealing.

However, as entrepreneur Qiao Wang notes, there are many factors, projects and movements in the DeFi sector today. Wang acknowledges that much of what is happening is simply due to luck or a combination of luck and skill, Wang stated:

(…) if you think the Defi thought leaders know exactly what they are doing, they don’t. Everyone is learning as they go. Also too early to separate luck from skill. Myself included. So don’t feel discouraged if you can’t keep up.

About Author

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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