Web 3 is replacing DeFi among the most traded currencies in crypto.
Cosmos’ Atom, Solana’s native currency and Internet Computer (formerly Dfinity) all entered the CoinDesk 20 in this quarter’s reconstitution, in a shift where Web 3 software platforms, tools and infrastructure replaced decentralized finance (DeFi) and DeFi-related applications among the most-traded currencies in crypto.
The three new currencies replaced Aave, The Graph and Uniswap, reversing a trend earlier in the year, in which listings of DeFi assets on major centralized exchanges propelled them into the CoinDesk 20 and remade the list.
The CoinDesk 20 is a list of the top 20 cryptocurrencies by volume, as measured on a select list of trusted exchanges. The list is reconstituted quarterly, using data observed over the prior two quarters. The full list is here. A full description of the methodology can be found here. Volume data is provided by Nomics.
All three of the new currencies are related to Web 3, a category of cryptocurrency projects aimed at providing globally decentralized and permissionless computer networks. Here’s a brief introduction to the new assets in the CoinDesk 20:
Solana trades under the ticker SOL. It’s the native currency of a project by the same name that aims to deliver a faster, more cost-efficient Web 3 platform for decentralized applications. As such, it is a competitor to Ethereum.
Atom trades under the ticker ATOM. It’s the native currency of Cosmos, a project that looks to provide Web 3 developers with tools to allow interoperability between blockchains. It is sometimes referred to as an “internet of blockchains.”
Internet Computer trades under the ticker ICP. It’s the native currency of a project by the same name that aims to provide a network of cloud computing providers accessible via the ICP token – essentially a decentralized version of Amazon Web Services. Internet Computer was formerly known as Dfinity.
The three replaced assets are all DeFi-related:
Aave is the native currency of a lending application that sets interest rates and serves depositors and borrowers.
The Graph is a decentralized data indexing service that manages data from Web 3 projects. It is widely used by DeFi applications.
Uniswap is among the largest decentralized exchanges by volume and its native token is one of the top DeFi currencies by market cap.