Many DeFi crypto projects are evolving in this growing DeFi empire nowadays. Many users started buying cryptos to make their money grow faster. But keep in mind that you need to invest in the best one to make your investment more profitable, and it’s important to analyze the best DeFi crypto list before investing in the DeFi space.
Here, I have listed the best DeFi tokens to help you make informed investment decisions. Let’s dive into a detailed overview of each cryptocurrency throughout this blog.
Before jumping into the topic “DeFi Crypto List: An Overview Of Best Decentralized Finance Tokens,” let me give you an overview of DeFi tokens that will be more helpful for people who are new to the DeFi space.
What is DeFi crypto (Token)?
DeFi tokens are digital assets that are traded by utilizing decentralized platforms (DApps). These cryptos are created to establish financial services in a decentralized manner, without any involvement of any central authority like banks, etc.
DeFi tokens are created on the blockchain using a framework that is resistant to censorship and is open-source.
These tokens can be tied to the value of the US dollar, fluctuate similarly to stocks based on supply and demand, or automatically change their value in response to price fluctuations through a process called rebasing.
Right, let us look at the best DeFi crypto list now.
DeFi Crypto List
Uniswap (UNI) – $4.50 Billion (Market cap)
Uniswap is one of the biggest decentralized cryptocurrency exchange platforms operating on the Ethereum blockchain. Here, users can trade tokens directly without the involvement of any third parties. It uses a valuable mechanism named automated market maker (AMM), which provides liquidity for the platform users to swap tokens quickly.
The UNI token is the native governance token of the Uniswap DeFi protocol. It is such an integral part of the administration, growth, and community involvement. UNI token holders vote on proposals regarding governance, and a certain percentage of the UNI token supply is set aside in a treasury, which goes towards further development of the Uniswap exchange.
Uniswap token holders can receive a percentage of the platform’s trading fees by holding those tokens in a governance contract or by being a liquidity provider. Also, you can get special perks and airdrops from other DeFi projects.
Avalanche (AVAX) – $11.55 Billion (Market Cap)
Avalanche is a blockchain network designed to support custom blockchain networks and decentralized applications (DApps). It is one of the competitors to Ethereum, Avalanche is trying to become a top platform for smart contracts. Avalanche is designed to handle thousands of transactions easily without compromising on scalability.
So, investing in AVAX supports the DeFi protocol’s success, and it’s also used for transaction fees, transferring crypto assets, and app development. Avalanche is recognized as one of the most successful blockchains in the DeFi space. It Leads to increased demand for its native token as one of the top cryptocurrencies on the market.
Chainlink (LINK) – $7.11 Billion (Market Cap)
Chainlink is a technology that works as a connector between blockchain smart contracts and real-world data. It helps to access data from outside of their blockchain, like events, data feeds, or payment systems. This connection is very essential because almost many smart contracts need external information to work properly.
LINK token stands out as a leading DeFi crypto, serving as the payment currency in this decentralized information ecosystem. Chainlink users can utilize LINK tokens to compensate Oracle operators for the services they provide.
These LINK tokens act as an incentive for node operators that motivates them to deliver both timely and accurate information to the network. Moreover, users don’t directly influence the reputation of data providers through LINK tokens.
Aave (AAVE) – $2.30 Billion (Market Cap)
Aave is one of the most popular decentralized lending platforms helps users borrow, lend, and earn interest on digital assets. That offers users flexible borrowing, attractive interest rates, and leading flash loans. Well, the shocking thing to know is that more than eight billion dollars are locked on the platform.
AAVE is one of the best choices to invest in if you are looking to earn a piece of profit. A part of the fees generated from all the transactions used to buy and burn tokens to minimize the supply. This ongoing deflationary pressure could result in a value increase over time.
Moreover, this native works like a safety module because it can be used as an insurance fund to cover any possible failures in the system.
1 Inch Network (1INCH) – $352.37 Million (Market Cap)
1 Inch Network serves as a decentralized exchange aggregator that provides superior liquidity, better trading rates, and less slippage for the users by merging liquidity from various (DEX). Generally, it is one of the most compelling penny cryptos that could change traders’ interactions with cryptocurrency markets.
Individuals participating in the 1inch Network, whether by trading or providing liquidity, can receive 1INCH tokens as rewards. Additionally, the token holders enjoy fee discounts and other attractive benefits. This rewarding environment makes 1INCH a promising penny token, as its value may increase with a growing user base on the exchange.
MakerDao (MKR) – $1.39 Billion (Market Cap)
MakerDAO functions as a decentralized autonomous organization (DAO) that has established and manages the Dai stablecoin. It operates on its own cryptocurrency called the MKR token. The MKR token holders participate in the governance of DAO to make decisions in the DAO space.
Typically, more than 400 apps currently integrated with Dai, which allows Maker Dao to invest in a dynamic, decentralized economy that doesn’t depend on a central authority. Also, the users can create Dai by securing collateral, so the stablecoin remains backed by tangible assets.
So, holding this MKR token helps you to influence how the protocol evolves, such as deciding the Dai interest rate and adjusting various risk parameters.
Right! You have covered the DeFi crypto list. Now it is time for a conclusion.
Conclusion
In essence, the tokens mentioned above in the DeFi crypto list are quite popular among many crypto enthusiasts, and investors are in the race to invest in them. However, there is still a lack of efficient platforms to meet this growing demand.
This presents a fantastic opportunity for entrepreneurs to create their own DeFi platform and step into the DeFi sector. For professional support, consider partnering with Zodeak, as a leading DeFi development company, we help you build your platform. So you can take full advantage of the future of decentralized finance.
