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The CELO network features a stability protocol capable of hosting an ecosystem of stable value currencies like the CELO Dollar. So to understand how valuable CELO actually is, we will be taking a dive into what blue chips are in DeFi and how does this reflects onto CELO.
The term blue chip is used in the corporate world to refer to financially stable companies with inherent profitability mechanisms even in challenging economic circumstances. In crypto, blue-chip alludes to blockchain currencies with a market capitalization of at least $2 billion.
DeFi (decentralized finance) is disrupting the cryptocurrency industry. Though Ethereum is practically the hosting pioneer of the DeFi platform, newer applications are emerging to offer financial solutions through smart contracts by carrying out agreements between two or more parties without an intermediary.
By disrupting the traditional cryptocurrency scene, DeFi appears to usher in a new crypto age.
The applications offer more than the primary exchange-of-value task but allow for financial services like loaning, lotteries, and purchase of crypto coins whose value peg to that of a popular fiat currency or commodity.
There is no middleman and round-the-clock access or even combined with quick settlements. This makes DeFi attractive.
Let’s consider that Chainlink (LINK), Wrapped Bitcoin (WBTC), and DAI as the blue-chip DeFi coins. The three possess a relatively high market cap of over $1.0 billion – which Ethereum’s blockchain hosts all of them!
In Theory, CELO has all the tick marks to blossom in the bull market. With CELO’s strong team, leaders, and large alliance – this ensures stability in the company’s future. Retail investor behavior is the only thing that halts the full capacity of this CELO soaring. One thing however is certain, that CELO will be around for a little while longer.
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