The total value locked (TVL) in Decentralized Finance (DeFi) platforms continues to surge, surpassing the gross domestic product (GDP) of many countries with an investment exceeding $52 billion. As 2024 approaches, three decentralized exchange protocols stand out: Uniswap (UNI), PancakeSwap (CAKE), and Orca (ORCA), according to data from DefiLlama as of December 21.
Uniswap leads the decentralized exchanges, renowned as one of the most robust protocols in its category. Initially launched on Ethereum (ETH), it has since expanded to support 12 chains with a TVL of $4.06 billion. Notably, its total value surged by 69% within 24 hours, trading at $5.98 at the time of writing, with its market cap nearly matching its TVL, indicating a balanced structure.
PancakeSwap maintains a strong market presence, ranking third with a TVL of $1.50 billion and is considered a key component of the BNB Chain (BNB). It hosted significant successes during the popularity of the play-to-earn game Mania in 2021. Currently, PancakeSwap has solidified its position by extending support to 8 additional chains, with its token CAKE experiencing an 11% increase, trading at $2.52.
However, less than half of its total value is locked, which might indicate a mismatch with a MCap/TVL ratio of 0.45, potentially signaling an intriguing buying opportunity.
Meanwhile, attention shifts to Orca, which has gained its position partly due to Solana‘s (SOL) success in the crypto world and specifically within the DeFi ecosystem. Orca, a Solana-exclusive DEX, saw a 169% increase in its TVL, securing the 10th spot with $179.13 million in Solana-based tokens locked in liquidity pools.
Interestingly, Orca’s market cap is twice its TVL, suggesting overbought signals. At the time of writing, ORCA was valued at $8.47, marking an impressive 1,870% increase since its inception.