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3 Cryptos to Buy for Long-term Gains in the DeFi Space


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DeFi cryptocurrencies can remove the burden of excessive control over financial services. Users are willing to buy them just to get access to staking, insurance, various games, and other options. The availability of these services on the blockchain adds value to the tokens. The significant decline of the crypto market has shown that it is not worth scattering attention between hundreds of names. Instead, let’s focus on three DeFi tokens that are poised for the next period of rapid growth. 

DeFi Cryptocurrencies: Astar (ASTR-USD)

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Astar (ASTR-USD) offers a robust framework for the development of cross-chain decentralized applications (dApps). The project token allows one to make transactions, participate in governance, and stake in the ecosystem. Developers can use Astar’s tools to create innovative dApps in different domains.

The DeFi token has been showing super-fast growth since December last year. From a price level of $0.0658, it rose to $0.1866 at the end of January 2024. The market capitalization shows even better results. While in mid-2023, it was at most $200 million, it has now crossed the $1 billion mark. Despite a recent 41.5% drop in trading volume, ASTR maintains its position and trades at a price five times higher than its historical low. This DeFi cryptocurrency is in a bullish trend. ASTR is trading above key exponential moving averages (EMAs), indicating a strengthening trend. Despite the recent pullback, the Relative Strength Index (RSI) indicates positive sentiment around the token.

The number of ASTR owners has exceeded 650,000. This is a testament to the growing trust and involvement of DeFi enthusiasts in the industry. Astar Network has such a strong influence on the Web 3.0 sphere that it even plans to become a center for smart contracts in the Polkadot ecosystem.

Despite the recent short correction, ASTR has the prerequisites for continued growth. Sota Watanabe, the founder of Astar Network, announced the planned launch of the flagman Astar zkEVM network. The event is due in early 2024, along with several other updates.

Sei (SEI-USD)

The words

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Sei (SEI-USD) focuses on specific cryptocurrency trading needs while remaining extremely fast and secure. The exchange of digital assets using SEI includes the Twin Turbo Consensus. This is an optimized mechanism for faster block production and transaction processing. Several innovations for congestion prevention, parallel processing, and order matching increase transaction efficiency and create a competitive advantage for the project.

Sei Labs is rolling out the Sei v2 update in the first half of 2024. It aims to remove obstacles for developers who want to deploy DeFi protocols on the Sei blockchain. The expectation of such improvements could build up a positive impact on the SEI course. 

The alternative blockchain seeks to parallelize the Ethereum Virtual Machine (EVM). Such solutions allow developers to create smart contracts on Solidity and Vyper. The Sei Foundation’s grant program aims to support these developers and make the project’s ecosystem more attractive.

Last year, Sei Network received investments from major market players such as Jump Crypto, Multicoin Capital, and Flow Traders. Even in the crypto world, $30 million is a significant amount, and the project itself was valued at $800 million. The high assessment of investment attractiveness has paid off, with SEI experiencing a 7622% increase. Currently, the token price is in the range of $0.61-$0.76.

Analysts remain optimistic about this DeFi cryptocurrency, taking into account both the fundamental factors of the cryptocurrency itself and the state of the altcoin market as a whole. Increased adoption of virtual currencies in business, technological progress, and the involvement of large investors are typical of the altcoin season.

Analysts remain optimistic about this DeFi cryptocurrency, considering both the fundamental factors of SEI itself and the state of the altcoin market as a whole. And the popularity of SEI-based meme coins only increases the demand for the token.

dYdX (DYDX-USD)

DeFi 2.0 in yellow neon text on black background with pink and green bar graphs and colorful trend lines

Source: shutterstock.com/A. Solano

The total volume of blocked staking derivatives has passed the $31.1 billion mark. Liquid staking has moved from an interesting additional option to an important element for crypto users. By blocking tokens, they get a universal asset to use in various DeFi applications.

The Cosmos-based dYdX (DYDX-USD) chain has been updated to v3.0. Now, it can effectively support cross-chain accounts and liquid staking protocols, and users can purchase staked denominations of dYdX v4’s native token. This news comes with a confirmed partnership with Stride. dYdX plans to cooperate not only with this recognized liquid staking provider but also with Shortly. Persistence and Quicksilver will also join the list of liquid staking options for the project. 

Stride plans to distribute its tokens to users who liquidate their DYDX. The results of this action stimulate the value of DYDX. The CEO of the dYdX Foundation is convinced that the campaign will contribute to the growth of the community and its engagement. 

After the fall peaks, this DeFi token has gone through a correction phase and is showing signs of growth. DYDX faced a difficult period when it moved in a price range of $2.84 to $4.36 after the value decline in November 2023. However, the improved position of the dYdX exchange should improve the current picture. By the end of last year, the 24-hour trading volume exceeded $625 million, putting it among the leaders of the largest decentralized exchanges. dYdX has surpassed Uniswap (UNI-USD) by more than $100 million in daily trading volume.

On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Julia Magas is a writer who covers the latest trends in finance and technology. Her work is published in a number of financial media outlets such as Nasdaq, Cointelegraph, Investing, SeekingAlpha, FXEmpire, and Beincrypto. She primarily covers cryptocurrency and blockchain technology with a focus on market performance, innovations and trends.

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