Best Defi coins in 2022
Many Decentralised Finance (DeFi) coins have made their way into the minds of many cryptocurrency investors and people outside the crypto community who are considering entering it for the first time. The utility and significance of these DeFi coins, in particular, cannot be overstated.
DeFi platforms have enabled users to borrow, save, lend, or trade cryptocurrency without the traditional bureaucracies found in financial markets. Many people consider the top DeFi coins to be a good investment because of their popularity.
However, with so many projects available, it can be difficult for newcomers to determine what is worthwhile to invest in and what is not. To make things easier for you, we have compiled a list of the top ten best DeFi coins that you can invest in before the next boom in decentralized finance in 2022.
But, before we get into each of these DeFi crypto coins, let's first define DeFi tokens and how they work.
What are DeFi Coins (Governance Tokens)?
In a financial transaction, a decentralised finance coin, or DeFi coin, transfers value. These coins are frequently designed to power their own distinct native blockchain networks. When compared to traditional finance, these are quite different.
DeFi tokens, on the other hand, are well-known due to their various utilities in their native networks. Some of these DeFi tokens, for example, are governance tokens, which give users voting rights as well as management power.
This means that they can also define the rules that blockchains use to perform transaction and block verification. These tokens give their holders and the entire community the ability to vote on the future roadmap and any critical features implemented within the network.
This is the true power of DeFi tokens, and it is one of the primary reasons for their rapid growth and popularity.
Each of these tokens powers DeFi protocols, and some even have cross-chain functionality between DeFi platforms.
Which DeFi Coins to Buy in 2022? (Not Financial Advice)
If you're wondering which DeFi coins to keep an eye on, here's a list of current and upcoming DeFi coins to keep an eye on, all of which are DeFi tokens that power solid DeFi projects.
1. Maker (MKR)
MKR price chart
Maker Market Cap and Total Value locked
Maker has US $16.54 billion in total value locked up, with a market cap of US $1,985,847,276, as of January 2022.
What is Maker (MKR)?
Maker (MKR) is a decentralised network that is Ethereum-based. It is an autonomous organization (DAO) that allows anyone to lend and borrow cryptocurrency.
How does Maker work?
Maker DAO borrows against collateral in order to make the process of borrowing and lending crypto assets as seamless as possible.
The Maker allows its users to borrow against a wide range of cryptocurrency pairs that are all supported by the protocol.
MKR News and Updates
- According to The Block, MakerDAO voters approved the opening of a stablecoin vault by the 150-year-old US bank, Huntingdon Valley Bank. The value of this vault is US $100 million.
- The community of Maker agreed that Maker should allocate 500 million DAI, a complication of 80% US Short Treasuries and 20% IG Corporate Bonds.
Check out MKR's price prediction here.
Reasons why you should buy MKR
The main reason why the MKR token exists is to ensure that DAI remains pegged to the dollar. This dual-crypto strategy helps prevent volatility and provides users with more security in the project.
This means that the token brings a lot of benefit to the overall market, which is why it has the potential to always remain relevant and climb in value.
If you had invested US $1,000 in MKR at the start of 2021, how much would it be worth at the beginning of 2022?
On January 1, 2021, MKR was worth US $582.22. MKR is now worth US $2,046.61 as of January 19, 2022. This means if you invested US $1,000 in the token at the start of 2021, it would be worth US $3515.2 in January 2022. That is 3.5x in one year. Pretty good, right?
2. Curve Finance (CRV)
CRV price chart
Curve Finance Market Cap and Total Value Locked At the time of writing in January 2022, Curve Finance has US $14.08 billion in total value locked in USD, with a market cap of US $1,988,854,676.
What is Curve Finance (CRV)?
Stablecoins (CRV) is a decentralised exchange focused on offering users the opportunity to exchange stablecoins.
How does Curve Finance work?
Stablecoins are fully governed by a mathematical feature specifically designed to let them trade for one another at advantageous rates. Curve allows users to lock up cryptocurrencies so they can be traded by other users.
CRV News and Updates
- Phase 1 curve development plans might see the creation of a fresh swap application on Optimism.
- According to CoinDesk, the curve offers investors who own veCRV new revenue prospects by locking their tokens for 3 months to 4 years in order to increase the CRV return by 2.5 times.
Reasons why you should buy CRV
CRV is a token designed to function as a governance medium, an incentive structure, and a fee payment method. As a result, the CRV token is extremely useful within the project.
Nonetheless, there is a demand for it, which ensures that it will remain valuable and relevant for many years to come.
If you had invested US $1,000 in CRV at the start of 2021, how much would it be worth at the beginning of 2022?
On January 1, 2021, CRV was worth US $0.6223. CRV is now worth US $4.42 as of January 19, 2022. Therefore, if you had invested US $1,000 in the token at the start of 2021, it would now be worth US $7102.7 in January 2022.
3. Convex Finance (CVX)
CVX price chart
Convex Finance Market Cap and Total Value Locked
Convex Finance has US $11.86 billion in total value locked in USD, with a market cap of US $1,899,080,277 as of January 2022.
What is Convex Finance (CVX)?
Convex Finance (CVX) is a DeFi protocol built on top of the stablecoin exchange. It rewards curve liquidity providers and CRV stakers with additional yield.
How Does CVX Work?
Convex Finance’s platform is run by CRV token holders and Curve liquidity providers. They can earn additional interest rewards and curve trading fees on their tokens in return.
CVX News and Updates: On June 23, 2022, 40 addresses on Convex Finance were hijacked with 15,968 cvxCRV and 433 CRV by replacing the website and smart contract. However, on June 24, 2022, Convex Finance fixed this problem and refunded some tokens to those addresses.
Reasons why you should buy CVX https://www.convexfinance.com/
Decentralized finance has exploded in popularity in recent years and will continue to do so in the near future. CVX is a high-performing token with the potential to maintain its trend and relevance in the long run.
Because the token can be staked to earn a portion of Curve LOP's CRV earnings, it is a strong recommendation for anyone looking to establish a passive income stream.
If you had invested US $1,000 in CVX at the start of 2021, how much would it be worth at the beginning of 2022?
On May 18, 2021, the first recorded value for the CVX token was worth US $7.0834. The token is worth US $40.85 as of January 19, 2022. This means that if you had invested US $1,000 in the token at the start of 2021, it would be worth US $5,167 in January 2022. That is equivalent to 576%. Very impressive, isn’t it?
4. SushiSwap (SUSHI)
SUSHI price chart
SushiSwap Market Cap and Total Value Locked
SushiSwap has US $2.14 billion in total value locked in USD, with a market cap of US $783,641,054 as of January 2022.
What is SushiSwap (SUSHI)?
SushiSwap (SUSHI) is an Ethereum-powered token and platform that allows for the decentralized exchange of cryptocurrencies via the automated market maker (AMM) model.
How Does SUSHI Work?
SushiSwap is essentially software that runs on top of the Ethereum blockchain. It was specifically developed to incentivise a network of users to operate a platform where they could buy and sell cryptocurrency assets. It uses a collection of liquidity pools to achieve this task.
SUSHI News and Updates
- Sushi launched the SushiXSwap feature, which is a cross-chain swap Automated Market Maker (AMM). This might help increase platform utility.
- SushiSwap will be the first DEX that allows users to use a limit order to swap tokens at any price on the platform.
Reasons Why You Should Buy Sushi
SushiSwap, as a platform, provides DeFi users with features such as staking and yield farming. This is a less time-consuming and more consistent way of earning money with the cryptocurrency holdings that each trader already has. Sushi's value has historically increased and will most likely continue to do so in the future, making it a strong recommendation.
If you had invested US $1,000 in SUSHI at the start of 2021, how much would it be worth at the beginning of 2022?
On January 1, 2021, the SUSHI token was worth US $3.3111. The token is worth US $6.24 as of January 19, 2022. Therefore, if you had invested US $1000 in the token at the start of 2021, it would be worth US $1843.2 at the beginning of 2022. Well, not that good, but still better than saving your money in a bank account, right?
5. Uniswap (UNI)
UNI price chart Market Cap and Total Value Locked
As of January 2022, Uniswap has US $8.29 billion in total value locked in USD, with a market cap of US $9,804,039,151.
What is Uniswap (UNI)?
Uniswap (UNI) is an automated, decentralised cryptocurrency exchange built on top of the Ethereum blockchain. UniSwap’s native cryptocurrency token is known as UNI.
How does UNI work?
Uniswap software was designed to run on the Ethereum blockchain. A global network of users is incentivized to maintain and exchange cryptocurrencies bought and sold by traders directly. Uniswap uses a collection of liquidity pools to achieve this task.
UNIL News and Updates
- On July 12, 2022, 4,295 ETH on the Uniswap V3 Ethereum chain were hijacked by the hacker, according to CZ.
- By transaction volume, UniSwap on Polygon overtook Ethereum as the top non-Ethereum platform for V3.
Check out the UNI price prediction here.
Reasons why you should buy UNI
Through buying the native cryptocurrency token of Uniswap, known as UNI, users can participate in the decisions on how the network operates and benefit from the rising value of the DEX throughout time. This is why it is an important token that needs to be a part of anyone’s portfolio.
If you had invested US $1,000 in UNI at the start of 2021, how much would it be worth at the beginning of 2022?
On January 1, 2021, UNI was worth US $4.7362. UNI is worth US $15.70 as of January 19, 2022. Accordingly, if you invested US $1,000 in the token at the start of 2021, by January 2022, it would be worth US $3314.9.
6. Aave (AAVE)
AAVE price chart
AAVE Market Cap and Total Value Locked
At the time of writing in January 2022, Aave has US $10.95 billion in total value locked in USD, with a market cap of US $2,926,767,867.
What is AAVE (AAVE)?
Aave (AAVE) is an open-source based and non-custodial protocol that allows users to earn interest on deposits and even borrow cryptocurrency assets.
How does AAVE work?
Aave is built on the Ethereum blockchain. It does, however, use a smart contract system to allow assets to be managed by a distributed network of computers running its software.
Users of Aave are not required to trust any central authority or institution, only the code. Furthermore, AAVE's value is determined by its limited supply, and fees are used to purchase AAVE and remove the cryptocurrency from circulation.
AAVE News and Updates
- According to Cointelegraph, a partnership between the Aave protocol and Pocket network, a supplier of decentralized Web3 infrastructure, may launch more than 44,000 nodes across numerous blockchains to boost Dapp capability.
- AAVE DAO received a proposal for GHO, a collateral-backed stablecoin that is pegged to USD.
Reasons why you should buy AAVE
Any holder of the AAVE token can get access to numerous advantages. In other words, AAVE borrowers do not get charged a fee if they take out loans denominated in the token and get a discount on any other fees within the platform.
Additionally, if you want to be a borrower from Aave, you can post the token as collateral, which will allow you to borrow more. This utility of the token is what makes it so valuable.
If you had invested US $1,000 in AAVE at the start of 2021, how much would it be worth at the beginning of 2022?
On January 1, 2021, AAVE was worth US $90.35. AAVE is worth US $217.40 as of January 19, 2022. So, if you invested US $1,000 in the token at the start of 2021, by the beginning of 2022, it would now be worth $2406.2. That is more than double your principle.
7. Compound (COMP)
COMP price chart
COMP Market Cap and Total Value Locked
Compound has US $7.81 billion in total value locked in USD, with a market cap of US $1,092,417,164 as of January 2022.
What is a compound (COMP)?
Compound (COMP) is an Ethereum token that serves as the Compound Protocol's governance token.
The Ethereum Protocol, on the other hand, is a collection of decentralized interest rate markets that allow users to supply and borrow Ethereum tokens.
How Does COMP Work?
Compound is software that runs on top of the Ethereum blockchain. It allows users to deposit cryptocurrencies within lending pools, which borrowers can access.
This way, lenders can earn interest on the assets they end up depositing. A deposit is made to the lenders and a new crypto called cToken is rewarded.
COMP News and updates
- Compound and Aave loaned US $258 million to Celsius, according to Coindesk. The corporation started making payments and received the collateral assets back.
- Compound Treasury received a B-credit rating from S & P Global Ratings. This makes Compound Treasury the first institutional DeFi offering to be rated by a credit rating agency.
Reasons Why You Should Buy COMP
Comp is a cryptocurrency token that will allow anyone to earn additional income through lending or borrowing cryptocurrency.
Users also have a built-in incentive to hold the token as they can make decisions on how the platform will evolve in the future.
If you had invested US $1,000 in COMP at the start of 2021, how much would it be worth at the beginning of 2022?
COMP was worth $144.59 on January 1, 2021. As of January 19, 2022, the COMP token is worth US $172.33. This means that if you invested $1,000 in the token in January 2021, it would be worth $1185.3 in January 2022.
To be honest, Defi did not have a good year in 2021. We can only wait and see what happens when more people and large institutions start using Defi.
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