In the traditional equities market, “blue-chip” stocks are household names that have proven strong financials and steady returns over the long term, even through downturns. The label is far from technical, and functions more as the financial community’s subjective stamp of approval: These companies are here to stay, and you can’t go wrong investing in them. Think Amazon, Apple, Nike, and Warren Buffett’s Berkshire Hathaway.
In the nascent and rapidly evolving DeFi (decentralized finance) sector, Decrypt has identified eight projects that have achieved something close to blue-chip status with the community—for now. Our criteria include reputation, lack of hacks, price performance, and continued updates and new features.
DeFi is still so new that it might feel crazy to crown any DeFi project’s “blue chips” yet.
But investors have locked up more than $65 billion in DeFi protocols, according to DappRadar. Still, not every DeFi project is created equal. Hacks, exploits, and “rug pulls” have dotted the rise of the sector, separating the cash grabs from the blue chips. Investors should proceed with caution, and as with any new and volatile asset, only put in what you could stand to lose. Building the future of finance won’t happen without at least a few hacks, crashes, and scares.
Certainly, none of these projects is as established as a brand like Microsoft or Apple, but each one has earned some level of trust from the DeFi investor community. In crypto, that’s worth its weight in digital gold.
Decrypt will update our list of blue-chip DeFi tokens over time as the space evolves.