Luno's Latest Crypto Listings and its Market Insights

 

On September 12, 2024, Luno, Malaysia's leading regulated digital asset exchange, announced the addition of five new DeFi coins to its platform. These include Aave (AAVE), Curve (CRV), Maker (MKR), Synthetix (SNX), and Stellar (XLM). With these new additions, Luno now offers 18 digital assets, marking its largest batch of launches in the country to date.

Overview of the New Digital Assets

• Aave (AAVE)

Aave is a decentralized lending protocol that allows users to lend and borrow various cryptocurrencies without intermediaries. Borrowers can obtain flash loans that require no collateral and are settled instantly within the same transaction. The Aave protocol uses smart contracts to manage the lending pools, and its native token, AAVE, provides governance and staking incentives. Aave's robust framework enables various borrowing and lending strategies, including fixed and variable interest rate loans.

• Curve (CRV)

Curve is a decentralized exchange optimized for stablecoin trading, enabling users to trade stablecoins with low slippage and minimal fees. The platform serves as a liquidity pool for stablecoins like USDC and Tether (USDT) and offers liquidity providers incentives through the CRV token. Curve's unique algorithm minimizes impermanent loss and enhances the efficiency of stablecoin transactions. The CRV token also grants governance rights to holders who can vote on protocol updates.

• Maker (MKR)

MakerDAO is a decentralized autonomous organization that allows users to lock up crypto-assets as collateral to generate its stablecoin, Dai (DAI). The MKR token is integral to the system, enabling governance and risk management decisions within the Maker protocol. This protocol has been pivotal for decentralized finance, allowing the creation of DAI, a stablecoin pegged to the USD, which users can generate without the volatility typically associated with cryptocurrencies.

• Synthetix (SNX)

Synthetix is a decentralized platform for creating synthetic assets, representing various real-world assets such as commodities, currencies, and indices. These synthetic assets (Synths) are collateralized by the native SNX token, enabling traders to gain exposure to assets without holding them directly. The Synthetix platform operates with minimal slippage, making it highly effective for derivatives trading. The protocol has seen significant growth, particularly owing to its synthetic assets trading on layer 2 solutions like Optimism.

• Stellar (XLM)

Stellar aims to connect traditional financial institutions with blockchain technology, facilitating rapid and low-cost cross-border payments. Stellar's native cryptocurrency, Lumens (XLM), acts as a bridge currency to streamline the transfer of value. This system has seen substantial traction in developing markets and has formed partnerships with entities like IBM for the World Wire initiative, enhancing financial inclusivity. Stellar’s consensus protocol reduces transaction time and energy usage, positioning it as an eco-friendly alternative in the blockchain space.

Market Performance of the New Digital Assets

1. Aave (AAVE): As of October 1, 2024, Aave is priced at $157.31, with a market cap of $2.35 billion. The market cap signifies Aave's substantial presence in the cryptocurrency market, reflecting investor confidence and widespread adoption. Aave stands out due to its comprehensive DeFi lending and borrowing solutions, making it an attractive investment for those interested in the decentralized finance landscape. The protocol's innovative use of flash loans and its adaptable interest rate models provide substantial growth potential in the DeFi sector. 

Aave has demonstrated significant growth due to the DeFi boom, with a year-to-date growth rate nearing 90% in early 2024.

2. Curve (CRV): Curve's current price is $0.295, with a market cap of $383.79 million. Curve has gained traction due to its focus on stablecoin trading, which provides a stable, low-volatility environment for investors. The StableSwap algorithm helps maintain stability and efficiency, making Curve an appealing option for users preferring steady returns over high-risk investments. Experts predict that Curve Finance, with its focus on low volatility assets, will continue to be a reliable platform for stablecoin trading.

CRV has experienced substantial volatility over the past year. The price has declined by approximately 45.12% during this period, with a high of $0.86 and a low of $0.217. This indicates significant fluctuations within a relatively short time frame.

3. Maker (MKR): Maker is valued at $1,454.13, with a market cap standing at $1.39 billion. Maker has established itself as a cornerstone of the DeFi ecosystem, playing a crucial role in providing a stable currency and value storage option. MKR token holders govern the protocol, influencing risk parameters, collateral types, and system upgrades to ensure stability. The protocol's importance is underscored by its consistent adoption and integration into various DeFi platforms.

4. Synthetix (SNX): Synthetix's price is $1.5, with a market cap of $528.06 million. Synthetix is growing rapidly due to its focus on synthetic derivatives, offering high-risk and high-reward opportunities for traders. The protocol's comprehensive ecosystem supports complex trading strategies and extensive liquidity provision, positioning it as a significant player in the derivatives market. The release of Synthetix V3, a permissionless derivatives liquidity platform, is expected to drive further growth and adoption.

As of October 1, 2024, SNX's live price stands at $1.5 with a 24-hour trading volume of $10,467,191. The cryptocurrency had a -20.05% decline over the past week, although it saw a month-over-month increase of 5.77%, indicating a positive short-term sentiment despite longer-term bearish trends

5. Stellar (XLM): Stellar's price is $0.093, and its market cap is approximately $2.96 billion. Stellar has established strong partnerships with financial institutions like Deloitte and American Express, leveraging its technology to enhance cross-border payment systems. The network focuses on financial inclusion and has strategic collaborations aimed at expanding access to financial services in developing markets. Stellar's robust technology and strategic partnerships position it for significant growth in regions needing efficient payment solutions.

Over the past year, Stellar (XLM) has experienced a decline in its market price. According to Kraken, the highest price of XLM in the last year was $0.16 and the lowest was $0.084, resulting in a -18.73% change over the year. CoinLore supports this by indicating Stellar's yearly price history ranges from $0.08844 to $0.1033 in the past year. On BitDegree, November 2023 price data for XLM was $0.1125, slightly above its current price of $0.0923.

Each cryptocurrency—Aave (AAVE), Curve (CRV), Maker (MKR), Synthetix (SNX), and Stellar (XLM)—has demonstrated unique market performances over the past year.​ While Aave and Maker have shown resilience and strong market positions, Curve and Synthetix have faced significant volatility and challenges. Stellar has focused on strategic partnerships and platform enhancements to maintain its market position. Their differing performances reflect broader market trends and the specific challenges and opportunities each protocol faces.

Comparative Analysis: Technology, Use Cases, and Market Trends

Disclaimer: The Shariah compliance status mentioned is based only on Sharlife's analysis. 

Token	Technology	Use Cases	Market Trends and Potential	Shariah Status
Aave	Decentralized lending protocol with smart contracts	Lending, borrowing, flash loans	Strong growth potential due to DeFi boom	/
Curve	Stablecoin-focused decentralized exchange	Stablecoin trading	Stable due to its focus on stablecoins; low volatility	/
Maker	Collateralized debt position (CDP) model	Creation of stablecoins (DAI)	Essential for DeFi; high utility in storing value	/
Synthetix	Synthetic asset platform	Trading synthetic assets	Growing with synthetic derivatives; high risk-reward	X
Stellar	Blockchain-based payment network	Cross-border payments	Strong partnerships and adoption in developing markets	/

The analysis of Aave, Curve, Maker, Synthetix, and Stellar provides a comprehensive overview of the current state and future potential of these significant players in the decentralized finance (DeFi) sector. Each project leverages unique technologies and offers various use cases that cater to the evolving demands of users in the cryptocurrency market.

Aave stands out for its innovative lending features, such as Flash Loans, while Curve excels in stablecoin swaps with low slippage. Maker facilitates a crucial decentralized stablecoin ecosystem through DAI, and Synthetix offers the opportunity to trade synthetic assets, expanding market accessibility. Stellar, focusing on cross-border transactions and financial inclusion, serves as a bridge for integrating traditional finance with blockchain technology.

Market trends indicate a cautious yet optimistic future for these platforms, with expectations of technological advancements, increasing adoption, and regulatory developments shaping their evolution.​ As DeFi continues to grow, the integration of these protocols with mainstream financial systems will likely enhance their usability and facilitate broader acceptance of cryptocurrencies. This dynamic contributes to the potential for widespread financial democratization and innovation in the coming years.

Conclusion

As one of the six digital asset exchanges approved to operate in Malaysia, Luno offers a spectrum of investment opportunities in the cryptocurrency market. With a selection of 18 cryptocurrencies available for trading, including prominent tokens like Bitcoin (BTC), Ethereum (ETH), and XRP, investors have various options to diversify their portfolios.

However, it is crucial for Muslim investors to exercise due diligence in ensuring the Shariah compliance of their investments.​ It is recommended to verify the Shariah status of each cryptocurrency to ensure that their investments align with ethical and religious guidelines. By doing so, investors can confidently engage in the burgeoning digital asset market while adhering to Islamic principles.