The accelerated growth in popularity and investment observed in the decentralized finance sector (DeFi) has been largely reflected in the price charts of DeFi and yield farming related tokens such as Yearn.finance (YFI), Aave (LEND), and others that are growing to reach their historical highs in 2020. YFI alone has risen 10 times its value since it was listed.
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In fact, most of the high-profile tokens related to the DeFi ecosystem have outperformed Bitcoin (BTC) and other altcoins by a wide margin. Even governance and infrastructure projects such as Chainlink (LINK) and UMA, the latter of which became one of the largest DeFi protocols in September, were overshadowed by DeFi tokens.
Thus, with all eyes on DeFi projects and smart contract platforms such as Ethereum (ETH) and Cardano (ADA), a few sectors in the cryptomone world seem to have been left behind. Most notably, cost payment platforms such as XRP and Stellar (XLM).
Comparison of profits and losses since December 2018
Profit and loss comparison since December 2018. Funete: CaneIsland Digital Research
While smart contract platforms like EOS have made modest gains, they have failed to keep pace with competitors like Ether, which has been the epicenter of the DeFi-mania of 2020 (thanks to the fact that most DeFi-related tokens are Ethereum ERC20 tokens).
Ripple lost its charm
Among the top 10 crypt currencies by market capitalization, XRP has had one of the worst performances in 2020, recently losing its position as the third largest altcoin to Tether (USDT). Ripple currently ranks fourth with a market capitalization of approximately USD 10.6 billion.
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While XRP has gone up 20% since the beginning of 2020, it is far behind Bitcoin and many altcoins. In Binance’s Q2 report, the popular exchange revealed that XRP is the fifth worst performing crypt currency within the platform.
The project has also faced multiple legal issues, including a longstanding class action lawsuit regarding the marketing and sale of the XRP token. Ripple also faces a copyright lawsuit over the use of the „PayID“ brand. In more recent developments, Santander, one of Ripple’s largest banking partners, expressed concern when it came to adopting One Pay FX, Ripple’s international payments network.
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While things look bleak for XRP, there are some positive signs for the project, such as the growth of On-Demand Liquidity which has processed over $2 billion in transactions since its launch and has seen an 11-fold growth in the first half of 2020 compared to the first half of 2019.
There are also plans to move closer to the DeFi ecosystem with XRP’s partner, Flare Networks, announcing a project that aims to connect Ripple and Ethereum blockchains.