Yield generation or farming cryptocurrencies exploded in the last crypto bull cycle but were still experimental in the early stages. Over three years later, the decentralized finance (DeFi) ecosystem and protocols have improved significantly, creating solid and promising market opportunities.
The cryptocurrency market offers several opportunities to farm or generate yield after buying crypto, from simple staking to DeFi operations. Notably, simply staking Ethereum (ETH) is a two times better investment than the inflation-adjusted yield of 10-year US Treasury bonds.
It is interesting, however, that buying and staking ETH is considered one of crypto’s most conservative yield-generation investments. Meanwhile, other cryptocurrencies offer even better yield farming possibilities in already solid yet unexplored crypto ecosystems.
Picks for you
Finbold selected two of these yield generation or farming crypto to consider learning about and maybe buying in Q4 2024.
Hatom (HTM) and USH stablecoin for crypto yield generation
First, Hatom (HTM) surged as one of the most solid and advanced lending and liquid staking platforms in the market. This positions the protocol and leading project in the MultiversX (EGLD) chain as a must-watch yield generation crypto moving forward.
On October 17, Hatom Labs announced the ninth Hatom protocol update, one year after its launch on the mainnet. The team has a different communication strategy than most of the industry, reserving its announcements for very significant events only.
As expected, the recent announcement consolidated dozens of highly awaited features for the end of 2024 and the upcoming 2025. Among them, Hatom announced a more sustainable approach to its token’s HTM yield generation.
Additionally, Hatom Labs will offer more yield farming opportunities through different liquidity, lending, and booster features. The announcement also addressed the overcollateralized decentralized stablecoin USH final testing phase – a promising Sky’s (formerly MakerDAO) DAI competitor.
Hatom (HTM) price analysis
As of this writing, HTM is trading at $1.04 on the decentralized xExchange, showing signals of strength and momentum. Hatom’s token traded below the 30-day exponential moving average (1D 30-EMA) from March to August, breaking out on August 19.
HTM tested the 30-EMA resistance in the daily chart twice, now suggesting it has become strong price support. Moreover, the Relative Strength Index (RSI) displays an uptrend since the breakout, registering a strong 62.77 by press time.
MultiversX, being considered a promising Ethereum rival and the “technological Holy Grail of crypto,” can boost Hatom’s growth potential. It is also worth mentioning that Hatom plans to launch its solution in other popular blockchains, increasing yield generation opportunities.
Pendle (PENDLE) for crypto yield farming in 2024
On that last note, Pendle (PENDLE) stands out as a protocol already available in multiple chains, with impressive results. The token, PENDLE, earned the market’s attention this year, and experts like Defi_Mochi forecast it could reach $20 in 2024.
In a recent thread, the expert highlighted how Pendle achieved significant milestones as a “liquidity bootstrapper,” with impressive numbers. Considering the sector’s potential, the protocol could consolidate itself as a promising buy for crypto yield farming exposure.
“With global liquidity rising and attention returning to crypto, I expect yield markets to be hot again. [Pendle Finance] will be the primary beneficiary of this uptick in yields, being the primary trading platform for yields across crypto with [over] $30 billion cumulative yield trading volume.”
– Defi_Mochi
Among its achievements, Pendle Finance surpassed half-a-billion total value locked (TVL) in the Bitcoin DeFi (btcfi) ecosystem and $2.50 billion in total TVL, according to Defi_Mochi.
While the crypto yield sector offers promising opportunities, it also comes with relevant risks and required knowledge. Investors looking to generate yield with these protocols must learn and understand these risks before deploying capital and getting exposure.
Nevertheless, it is still possible to speculate on all this potential by simply buying and trading these tokens. Even then, traders must remain cautious and have a clear plan to face the market’s volatility and unpredictability.
