In Q3 2024, the DeFi sector showcased strong performance despite market challenges. Aave (AAVE) was a top-performing DeFi asset, with a 71% return that generated excitement among the broader crypto community. Aside from the spotlight, projects like MakerDAO (rebranded to SKY) and Compound Finance (COMP) stood strong as well, gaining a loyal following and securing alliances that brought significant weight to the sector’s foundational stability. In this article, we’ll explore the most promising DeFi projects poised to gain momentum in the final quarter of 2024, as well as top instant exchange services that offer easy access to these projects.
Key DeFi Projects to Watch in 2024
Aave Protocol (AAVE)
Aave is an open-source protocol for creating liquidity pools where users can either lend their assets to earn interest or borrow funds. It’s non-custodial, meaning users retain full control of their assets, and interest rates are determined by market conditions. With $20 billion in assets supplied across 13 networks and net deposits of approximately $19.7 billion, Aave remains one of the highest revenue-generating protocols in the DeFi ecosystem, posting a 71% return in Q3 2024.
As of this writing, Aave’s total value locked (TVL) stands at approximately $4.41 billion, reflecting its strong liquidity and user participation. The protocol holds a dominant 65.89% market share in active loans, significantly outpacing competitors such as Spark Protocol (12.32%) and Morpho (6.66%).
Active loans on Aave total about $7.9 billion, indicating sustained user demand and robust liquidity. Its market cap is around $2.5 billion, supported by over 170,000 token holders.
By making sound governance decisions and leveraging the market’s momentum, Aave has quickly risen to the top of the DeFi ranks, drawing new users and keeping its liquidity levels pumped up. In particular, when Aave’s ‘Buy and Distribute’ governance proposal took effect, it had a substantial impact, significantly boosting the AAVE token price.
Aave Protocol (AAVE) Lending Market Share
Source: Tokenterminal
MakerDAO (MKR) – Rebranded to Sky (SKY)
MakerDAO, an open-source, decentralized autonomous organization (DAO), is a pioneer in the DeFi space, which has built its infrastructure around DAI, a stablecoin pegged to the US dollar and overcollateralized by cryptocurrencies. As part of its Endgame strategy, MakerDAO has recently undergone a rebranding to the Sky Ecosystem, with DAI and MKR now known as USDS and SKY, respectively. The rebranding also includes renaming Maker’s subDAOs to Sky Stars and leveraging Spark Protocol—a lending and borrowing platform with nearly $4 billion in deposits—to expand the USDS ecosystem through tokenized real-world assets (RWAs). Impressively, the supply of USDS reached 1 billion just 13 days after its launch, highlighting rapid adoption and strong market confidence in the new ecosystem.
Price Comparison of Maker (MKR) and Aave (AAVE) with Key Milestones
Source: CoinMetrics
Furthermore, SKY token holders are demonstrating strong community support, totaling 101.74k as of the most recent 30-day period. The total value locked (TVL) within the Sky Ecosystem also saw positive growth, standing at $4.41 billion—an increase of 5.4%, which indicates rising liquidity. There has been a significant increase in the protocol’s treasury, with a remarkable 25.2% gain that brings the total to $281.93 million, confirming its financial strength. A significant surge in code commits—37.5% to be precise —also reflects the steady stream of progress within the ecosystem.
Sky(SKY) Token Holders & TVL
Source: TokenTerminal
Synthetix Protocol (SNX)
Synthetix Protocol (SNX) is a platform that facilitates the creation of synthetic assets that mirror real-world assets. Over the past 30 days, SNX has shown significant growth, solidifying its position as a promising player in the DeFi sector. The fully diluted market cap rose by 19.4% to reach $520.94 million, while the circulating market cap increased by 22.1%, totaling $549.62 million. Synthetix’s total value locked (TVL) also grew by 17.3%, now standing at $281.55 million, indicating rising liquidity. A milestone of $95.71 million reached by the protocol’s treasury following a spectacular growth of 23% reinforced its already-solid financial footing. The project’s community enthusiasm is also on the rise, with daily active users having increased by 108.3%. On the development front, a 10.3% uptick in code commits reflects the unwavering dedication to progress.
Synthetix Protocol (SNX) Token Holders & TVL
Source: TokenTerminal
Challenges of Using CEXs and DEXs
While centralized exchanges (CEXs) and decentralized exchanges (DEXs) have been instrumental in popularizing DeFi, they come with inherent challenges:
Centralized Exchanges (CEXs): Although user-friendly, CEXs have limitations, such as complex onboarding procedures, centralized control, and susceptibility to regulatory interference. For those who value financial independence, centralized exchanges may not be the best option, since their strict controls and lack of privacy are a major barrier to entry.
Decentralized Exchanges (DEXs): Despite offering more control over assets, decentralized exchanges often fail to meet expectations due to lackluster liquidity, causing users to encounter excessive slippage (i.e. the difference between an expected price and a price actually executed). Additionally, many users find the interfaces of DEXs daunting, especially when dealing with multi-step transactions across blockchains.
Getting access to DeFi projects without the hassle of traditional exchanges has now become much simpler, thanks to instant exchange services that streamline the process.
Accessing DeFi Projects Through Instant Exchange Platforms
Instant exchange platforms provide the best of both CEX and DEX worlds by allowing users to swap cryptocurrencies in a non-custodial environment without complex KYC procedures or liquidity problems. Below are three top instant exchange services for gaining access to DeFi projects.
ChangeNOW
Since hitting the scene in 2017, ChangeNOW has asserted its dominance as the go-to service for instant, non-custodial exchanges. It provides users with access to decentralized liquidity pools, including those from Uniswap and PancakeSwap, thereby offering exclusive DEX assets—cryptocurrencies and tokens available on decentralized exchanges—directly to users. This integration of DEX liquidity pools means users can enjoy cross-chain swaps with reduced fees and fewer on-chain transactions, streamlining the swapping process.
Through its Multichain Bridge service, ChangeNOW also facilitates seamless asset migration across blockchains, providing interoperability even for tokens without traditional exchange listings.
ChangeNOW supports 1,000+ assets, including the above-mentioned prominent DeFi projects like AAVE, SKY, and SNX, along with other popular options like Compound (COMP) or promising ones like Kyber Network (KNC), allowing users to engage with these projects without having to use centralized exchanges or DEX platforms.
The platform’s fiat on-ramp and off-ramp offer additional ease, with options to buy and sell cryptocurrencies in a range of fiat currencies like USD, EUR, and more, using diverse payment options including Visa, MasterCard, Google Pay, among others.
Source: ChangeNOW
They also offer ChangeNOW Pro, which brings enhanced user benefits to the table, such as lower fees, cashback on every transaction, and opportunities to stake their native NOW tokens for maximum benefit.
In addition, users have access to NOW Wallet for non-custodial storage and fund management, as well as NOW Tracker that lets them monitor their DeFi portfolio, along with other crypto assets and even stocks. Thus, whether users need a simple crypto swap or advanced tools like cross-chain bridges and staking solutions, ChangeNOW has positioned itself as a comprehensive DeFi gateway.
StealthEX
StealthEX gives users the stability of a centralized exchange, without requiring them to sacrifice custody of their assets, and the asset variety typical of a decentralized exchange. With over 1,500 supported digital assets and no KYC verification required for transactions under $700, they provide access to the above-discussed crypto tokens: AAVE, SKY, and Synthetix. Also, there’s an array of other DeFi token options like Chainlink (LINK), Uniswap (UNI), Fetch.AI (FET), PancakeSwap (CAKE), and Injective Protocol (INJ). StealthEX allows users to select fixed or floating exchange rates, according to their preference.
Source: StealthEX
Slippage can be any user’s worst nightmare, but the platform tackles this challenge with their efficient cross-chain swaps. By pooling liquidity from multiple sources, StealthEX makes it possible to move funds freely between blockchains, bypass intermediaries, and eliminate the slippage frustrations typically associated with DeFi swaps. Using StealthEX, beginners and pros alike can easily experience a smooth exchange experience via their web platform or mobile app, plus get peace of mind from reliable customer support for any issues that may arise.
Swapzone
Swapzone functions as an aggregator, ensuring users get the best deal possible when swapping crypto. Instead of being an exchange itself, Swapzone scans multiple platforms for the best rates and fees, offering real-time data on where to get the most favorable exchange conditions.
Source: Swapzone
Users can browse by rates, reviews, and exchange time to convert 1,600+ crypto assets instantly and at the best exchange rate. Instead of having to search multiple exchanges for the best value, this service gets users the results they need in one place. From secure data encryption to frequent security audits, Swapzone’s security shields keep transactions safe, while maintaining competitive pricing and fast transaction speeds.
Conclusion
With 2024 drawing to a close, resilience is the dominant theme in DeFi’s story. Buoyed by projects like Aave (AAVE), MakerDAO (SKY), and Synthetix (SNX), this once-fractured sector has pieced itself back together, making it more resilient than ever. In all three crucial areas—market adoption, community engagement, and liquidity—these protocols have consistently delivered solid results that speak for themselves. Platforms are being developed that allow users to take the hassle out of decentralized finance, offering effortless on-ramps to DeFi assets. To fully leverage the benefits of these and other DeFi projects, users can turn to instant exchange platforms like ChangeNOW, StealthEX, or the Swapzone exchange aggregator, which provide easy access without the hassles of traditional exchanges.
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