Kaiko said 2025 is not the year of Bitcoin, but the year of these altcoins: highlighted 3 out of 11! - Coin Bulletin

Kaiko Research, stating that the DeFi sector may experience a strong rally in the second half, especially highlighted three altcoins: Uniswap (UNI), Aave (AAVE), and Ondo (ONDO).

According to a new report published by Kaiko Research, although Bitcoin will dominate the market throughout 2024 with (BTC), decentralized finance (DeFi) projects may come to the fore in the second half of 2025. Particularly, clearer regulations in the US could pave the way for the growth of DeFi protocols.

The report highlighted that Uniswap and Aave could distribute to token holders by activating fee mechanisms, while Ondo could gain significant momentum with the acceleration of the tokenization trend.

3 of the 11 DeFi altcoins stand out

Kaiko's DeFi index (KSDEFI), has provided approximately 75% return against Ethereum (ETH) since October 2023. Among the 11 DeFi tokens included in this index, UNI, AAVE, and ONDO had the highest weights. In addition, other significant DeFi projects like Aerodrome Finance (AERO), Balancer (BAL), Curve Finance (CRV), SushiSwap (SUSHI), Compound (COMP), MakerDAO (MKR), Yearn Finance (YFI), and Synthetix (SNX) are also included in the index.

According to the report, improvements in regulations could allow Uniswap and Aave to distribute protocol revenues to token holders. This development could create a direct source of income for UNI and AAVE investors. Meanwhile, Ondo Finance (ONDO) appears to have significant growth potential in the tokenization field with the increasing interest of institutional investors in the crypto market.

Kaiko Research noted that the dependence on Ethereum in the DeFi market is gradually decreasing and that the sector's expansion could lead to a long-term growth trend. In particular, the easing of regulatory barriers in the U.S. could help overcome the fundamental issues facing DeFi, such as high transaction fees and security concerns.