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While Bitcoin might be the face of cryptos globally, DeFi projects have gained traction exponentially to revolutionize the global financial systems.
In 2019, DeFi’s total value lock was estimated to be $700 million, and this grew by a factor of fourteen in 2020 and then quadrupled in 2021, with the current TVL estimated to be upwards of $92 billion. Why such exponential growth?
DeFi projects provide those brave enough to dare numerous opportunities for high-interest earning, and these five DeFi cryptos provide an excellent starting point.
What are DeFi cryptos?
DeFi cryptos are blockchain-based technologies that offer decentralized financial services. These services run on smart contracts, and self-executing programs enforce contractual agreements between the different DeFi ecosystem participants.
Why invest in DeFi cryptos?
The online space is not the safest of places. DeFi ecosystems are a one-stop-shop for hackers and have lost funds for all the participants. Nevertheless, DeFi cryptos are the next big thing in blockchain technology, crypto space, and the finance world.
The top 5 DeFi cryptos to include in your crypto fund
If the last two years are anything to go by, the decentralized finance marketplace is on the verge of revolutionizing the global financial landscape and resulting in millionaires. However, this niche of the blockchain and cryptocurrency space has proven to be the most vulnerable, necessitating the need for smart investing to make money and avoid investment wipeout by hackers. The best five DeFi cryptos when considering market capitalization, security, growth potential, and a bargain in the token price.
No.1 Lucky Block (LBLOCK)
Price: $0.001946
Market capitalization: 71.07 M
LBLOCK price chart
One industry that keeps on getting before judges due to corruption is the gambling industry. With this DeFi ecosystem, Lucky Block, such allegations could be a thing of the past. It is a DeFi crypto taping into the human nature for believing in luck by digitizing the global lottery space, currently valued at $330 billion global.
Lucky Block decentralizes lottery outcomes and secures them from manipulation while achieving immutability by utilizing smart contracts. In addition, the LBLOCK token is utilizable to vote on the charitable organizations to benefit from lottery donations while earning their holders 10% of every jackpot price.
LBLOCK is currently trading with a 24-hour volume of $2.09 million. It has a market cap of $71.07 million, with approximately 37.23 billion coins in circulation, out of a total coin supply of 100 billion coins.
No.2 1inch Network (1INCH)
Price: $1.50
Market capitalization: $622.93 M
1INCH chart
What if you could make all your financial and banking needs from a single point? This phenomenon is precisely what the 1inch network tries to do for the cryptocurrency world. It is a blockchain decentralized DeFi ecosystem that provides aggregated solutions for decentralized markets, analyzing multiple crypto liquidity sources to provide participants with the best prevailing rates across the pooled markets; Avalanche, Binance Smart Chain, Arbitrum, Ethereum, Polygon, and Gnosis.
To ensure participants don’t get overwhelmed and trade with ease despite the multitude of choices, it utilizes SAP DeFi protocol, a flexible and innovative limit order protocol. P2P features, regular auditing, and a 5%-10% yield on all stable coins annually provide secure and earnings-oriented crypto that cuts across crypto exchanges.
1INCH currently has a 24-hour trading volume of $56.54 million. It has a market cap of $621.23 million, with approximately 414.97 million coins in circulation, out of a total available supply of 1.5 billion coins.
No.3 Terra (LUNA)
Price: $81.93
Market capitalization: $29.6 B
LUNA price chart
While central banks are looking for a way to cash in on the cryptocurrency craze, Terra is ahead of them by miles. This blockchain-based DeFi ecosystem offers investors stablecoins pegged to the leading fiat currencies globally and the dollar and euro; South Korean won, Chinese yuan, British pound, and the Japanese yen.
The supported fiat currencies extend beyond this list to even include Special Drawing Rights, SDRs, a currency backed by the International Monetary Fund and the IMF. Combining the day-to-day stability of the world’s leading fiat currencies with the borderless advantages of cryptocurrencies provides for stability and a world of opportunities for Terra’s crypto, LUNA.
LUNA currently has a 24-hour trading volume of $1.81 billion. It has a market cap of $29.54 billion, with approximately 361.29 million coins in circulation, out of an available supply of 744.70 million coins.
No.4 Yearn.Finance (YFI)
Price: $18.772.55
Market capitalization: 687.23 M
YFI price chart
The finance ecosystem is revolutionizing. The world will always require money for borrowing purposes. It is in this corner of the finance ecosystem that the Yield. This DeFi blockchain protocol is an aggregator service that links DeFi yield farmers with those in need of funding, enabling the former to earn exceptional yields on their held crypto coins. An allowance for traders to provide liquidity and a limited coin supply provides significant APY.
YFI currently has a 24-hour trading volume of $84.34 million. It has a market cap of $687.23 million, with approximately 36.63K coins in circulation of the available 36.67K coins.
No.5 dYdX (DYDX)
Price: $4.58
Market capitalization: $301.08 M
DYDX price chart
With the appetite for derivatives trading, it was only a matter of time before the volatility of cryptocurrencies became too appealing for derivative traders. The dYdX is a layer two blockchain protocol that brings together traders, liquidity providers, and partners to trade cross-margined perpetual successfully. An inbuilt scaling feature eliminates gas costs, reduces trading fees, increases transaction speeds, and lowerss minimum trade sizes while using this ecosystem. The smart contracts for security coupled with advanced financial tools and decentralized trading will propel the growth of this DeFi.
DYDX currently has a 24-hour trading volume of $61.67 million. It has a market cap of $301.08, with approximately 65.57 million coins in circulation out of a total available supply of 1 billion coins.
Final thoughts
The 2008 financial crisis was an eye-opener for why centralized finance systems should be a thing of the past. Come the coronavirus pandemic, the continued sanctions, and currency rate fluctuation in the wake of escalating Ukraine-Russia war, and now DeFi systems might be the only option available to avoid another global financial meltdown. With the correct screening to ensure security, the five DeFi cryptos are in a great position to benefit from this revolution.
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