Ethereum DeFi tokens may not scream investment opportunity

Ethereum’s DeFi platform has been able to grab significant attention over the past year. In fact, a recent announcement had revealed that the total value locked [TVL] had surpassed a sum of $1 billion, further solidifying the sector’s importance in the ecosystem.

Although the growth of the lending platform is undeniable and the reception positive, the investment case for these DeFi tokens may lack clarity presently.

A recent study released by Ryan Sean Adams assessed various DeFi tokens in terms of a price-to-earnings ratio of P/E, allowing investors to understand the future growth and expectations of any investment asset, relative to its present earnings.

Here, it is important to note that most of the DeFi tokens generated cash flows by charging a small fee for usage.

Some of the major tokens in comparison included MakerDAO, Synthetix, Ox, etc.

With respect to money protocol annualized earnings, Synthetix dominated the ecosystem with over $32 million fees generated. This is largely because Synthetix charges a fixed 0.30 percent on all trades and the fee generated is distributed among SNX stakers.

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