One altcoin that powers an Ethereum-based decentralized finance (DeFi) platform is defying broader market woes by rallying in a big way.
Rari Governance (RGT) is the governance token of Rari Capital, a DeFi suite that allows participants to borrow, lend and earn yields on cryptocurrencies.
Holders of RGT can take part in the protocol’s governance system through on-chain voting, contribute to liquidity pools found on decentralized exchanges (DEXs) to earn fee rewards, and use the token to obtain discounts on the protocol’s services.
According to Rari, RGT is a deflationary coin that burns tokens as it earns money.
“RGT will be burned on every cent made by the protocol (70% of all revenues to be exact), decreasing the total supply of the token as the protocol succeeds.”
The DeFi data tracker DeFi Llama says that Rari Capital currently has $54.26 million in total value locked (TVL) capital.
Rari Governance is currently surging, up over 57% on the day with an asking price of $6.73.
RGT at one point had rallied by 125% from $4.08 to $9.20 in less than 12 hours before correcting to current levels.
In contrast to Rari’s success, several centralized finance (CeFi) crypto projects have recently suffered significant losses and setbacks.
Just yesterday it was revealed that the Singapore-based cryptocurrency platform Vauld had suspended trading, deposits and withdrawals in response to “financial challenges” related to the wider market-wide slump.
Back in June, Celsius Network also halted numerous site functions while facing the prospect of insolvency.
Last Thursday the FTX US crypto exchange announced its intentions to acquire struggling digital assets lender BlockFi in a nine-figure deal after the company revealed that the recent market downturn had a negative impact on it.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Lemberg Vector studio