Top 3 Dao Projects To Look Out For In 2023

Now, as we enter the New Year, several crypto investors and traders are hoping that DAO projects will overcome the odds and post some kind of revival. Here’s a look at 3 platforms that could deliver on this promise:

Decentralised Autonomous Organisations (DAOs), much like the broader digital asset industry, had an exceptional year in 2021. Then came 2022 and the bitter crypto winter sent most coins reeling. Now, as we enter the New Year, several crypto investors and traders are hoping that DAO projects will overcome the odds and post some kind of revival.

Here’s a look at 3 platforms that could deliver on this promise.

LidoDAO (LDO)

Launched in December 2020, the Lido protocol offers staking services for Solana, Polygon, Polkadot and other Proof-of-Stake (PoS) blockchains. It also operates the largest ETH staking pool, with more than 4.8 million Ether locked on the platform. Lido is also one of the top picks for investors in 2023, especially with Ethereum’s Shanghai Update set to go live in March.

This update will allow users to withdraw their staked ETH and all the staking rewards accrued over time. It is a much-awaited update, considering that some users have had their ETH locked on the Ethereum network for years.

The Shanghai Update is also expected to drive more users toward ETH staking. This is because, until now, staking ETH meant locking it up indefinitely. However, the Shanghai Update will change this, making staking more viable. This is good news for Lido as it could cause a spike in new users and an increase in revenue.

As such, anticipation around the Shanghai Update has caused the governance tokens of top liquid staking protocols to rally and Lido is leading the pack. Its governance token LDO has risen 35 percent over the last 7 days. This momentum also saw Lido briefly displace Maker as the leading DeFi protocol in terms of total value locked, before handing back the position on January 2.

MakerDAO (MKR)

Another project to look out for in 2023 is Maker (MKR). It is a decentralised autonomous organization (DAO) built on Ethereum that offers crypto lending and borrowing solutions. It is also the leading DeFi protocol in terms of total value locked (TVL), with over $6.2 billion currently held in its smart contracts. And going into 2023, the protocol looks ready to post gains, let’s understand why.

To begin with, despite a turbulent 2022, Santiment data shows that Maker’s trading volume grew by 175 percent in the last 7 days, shooting from $14 million to $38.6 million. Further, over the last few months, the platform has also been using its capital to invest in ETFs and short-term bonds. On January 4, the protocol announced that these investments had resulted in profits of over $2.8 million.

Data from Dune Analytics also shows that the overall revenue generated by the protocol has seen a steady uptick over the past three months. While the aforementioned real-world assets (RWAs) account for a large chunk of revenue, Maker’s Ethereum and stablecoin investments were also pulling in decent earnings.

BitDAO (BIT)

BitDAO is a decentralised autonomous organisation (DAO) that is focused on building and growing the decentralised finance (DeFi) ecosystem. It is built on the Ethereum blockchain and utilizes smart contracts to facilitate a range of financial services and products, including lending, borrowing, staking, and trading.

BitDAO also ranks among the top DAOs in the market right now and it has enormous growth potential. The platform recently announced a $100 million buyback initiative for its native token, BIT. Through this initiative, which began on January 1, 2023, the protocol will buy back $2 million worth of BIT for 50 consecutive days.

The initiative has already sent the platform’s native token rallying. BIT has risen nearly 23 percent over the last 7 days. Trading volume has also spiked 13 percent over the last 24 hours, just crossing $20 million at the time of writing. Considering that the platform’s buyback is still in its early days, the project should see continued gains in the first half of 2023.

Conclusion

While these projects look poised for profits in 2023, it is important to remember that the crypto market is highly volatile. Even the strongest indicators can turn out to be false, causing massive losses. Therefore, remember to do your own research and invest only as much as you can afford to lose entirely.

(Edited by : Shloka Badkar)


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