With traditional finance investments still flowing into the Ethereum ecosystem, here are two ERC-20 tokens to consider for investment in May 2024.
Lido DAO (LDO) and Uniswap (UNI) stand out as two of the most prominent and highly capitalized Ethereum-based tokens that have demonstrated significant potential and spurred innovation in the Ethereum ecosystem.
Lido DAO (LDO)
As the largest DeFi protocol, Lido has reached a significant milestone of one million Ethereum validators and has taken a significant share of 28.5% of all ETH staked.
Unlike regular staking, which leaves Ether locked, Lido allows users to receive Lido Staked ETH (stETH), which can be used in other DeFi protocols, thereby increasing liquidity.
Lido dominates the liquid staking market with a total value locked (TVL) of over $29.9 billion, significantly more than its competitors. Despite the increased volatility on the crypto market, the token maintains its price at $2.10.
Lido's strong market position and innovative staking solutions make the token a promising investment with definite growth potential.
Uniswap (UNI)
Uniswap (UNI), offering automated market maker (AMM) for decentralized exchanges, continues to lead the way with the highest exchange volume in the DeFi space. Its governance token UNI, with a market capitalization of $5.38 billion and an MCap/TVL ratio of 1.07, indicates that the price of UNI is at equilibrium.
Uniswap remains the largest trading platform on the L1 cryptocurrency blockchain. According to DefiLlama, Uniswap's combined trading volume across 17 networks was more than $2 trillion, with users contributing more than $5.5 billion in fixed amounts, indicating confidence in the platform as a whole.
Investors and traders interested in these tokens should consider the inherent risks of all cryptocurrencies and conduct their own analysis before investing.