The DeFi (decentralized finance) market has lately become popular among crypto enthusiasts. In recent years investors from all across the world have taken an interest in DeFi. In simple terms, DeFi is a term used for financial applications based on blockchain technology aiming to democratize the financial environment by replacing centralized entities. Decentralized finance eliminates the requirement for third parties such as banks and exchanges to be involved in financial activities.
Today, financial services such as trading, borrowing, lending, decentralized exchanges, asset management, etc… can be conducted through Defi applications. All popular DeFi platforms have their own native tokens. These tokens are used to promote their operations and reward users. If you are thinking about investing in DeFi coins, now is the time. Here are the best DeFi crypto coins in 2021.
Best DeFi Crypto Coins To Invest in 2021 – Top DeFi Tokens
Uniswap is a decentralized crypto exchange (DEX). It isn’t regulated and managed by a single entity and uses a unique approach of trading called an automated liquidity protocol. The Uniswap platform was built in 2018 based on the Ethereum blockchain. It is compatible with all ERC-20 tokens and infrastructure.
Uniswap is completely open-source. So anyone can replicate the code of Uniswap to build decentralized exchanges themselves. Tokens can be listed by users on the Uniswap exchange for free. Popular crypto exchanges like Binance and Coinbase charge high fees to list coins. Uniswap allows users to keep control of their funds at all times. This reduces the risk of losing their investments if the security of the exchange is ever compromised. Uniswaps native cryptocurrency UNI is priced at around $23. It is currently ranked 10th in the market cap with over 13 billion dollars.
Read more on Uniswap Exchange Review
2. Chainlink (LINK)
Chainlink is a blockchain-based network that helps to bridge the gap between real-world data and smart contracts. It aims to play a major role in the real-world implementation of blockchain. Chainlink is developed based on the Ethereum blockchain and was launched in 2019. It connects blockchains to real-world data such as events, news, and payment details that are not a part of the blockchain. Chainlink provides secure, tamper-proof data for blockchains. It also has ways to guarantee the correctness and integrity of the data. Chainlink’s native cryptocurrency LINK is priced at around $23. It is currently ranked 14th among cryptocurrencies with a market cap of over 9 billion dollars.
3. Aave (AAVE)
Aave is a decentralized platform that allows users to loan and borrow a variety of crypto assets. It is popular for the variety of cryptos in which users can get loans, and for making lenders gain passive income on the funds they lend to borrowers. Aave was founded in 2017 based on the Ethereum blockchain by developer Stani Kulechov. He had been researching the potential for Ethereum to revolutionize the traditional economic system for years. Aave was initially launched as ETHLend and its native token was called LEND. The initial coin offering (ICO) of ETHLend raised $16.2 million. It was relaunched as Aave in 2020. AAVE is priced at around $328. It is currently ranked 28th among cryptocurrencies with a market cap of over 378 million dollars.
4. PancakeSwap (CAKE)
PancakeSwap is a decentralized exchange that lets you trade cryptocurrencies and tokens. It was developed by anonymous developers on the Binance Smart Chain, the blockchain of the popular crypto exchange Binance. It is one of the largest DeFi protocols today. PancakeSwap is similar to the popular decentralized exchange, Uniswap based on Ethereum. Similar to many other decentralized exchanges, PancakeSwap uses an automated market maker (AMM) system, which makes use of user-fueled liquidity pools to facilitate crypto trading rather than using the traditional order book system. It is a part of the rapidly growing DeFi trend that is enabling crypto traders to manage transactions with without a third party getting a significant share of the funds. PancakeSwap’s native cryptocurrency Cake is priced at around $17. It is currently ranked 37th among cryptocurrencies with a market cap of over 3 billion dollars.
5. Maker (MKR)
The Maker (MKR) token was developed by MakerDAO. Its principal objective is to maintain the stability of MakerDAO’s DAI token and facilitate governance for the Dai Credit System. Owners of MKR make important decisions on the work and prospects of the system.
The two tokens, MKR and DAI, were created by MakerDAO. DAI is a stablecoin intended to present an alternative to the highly volatile cryptocurrencies, and a new model of the economic system. MKR is used to maintain DAI’s stability. Most stablecoins make use of traditional currencies or assets to hold a cryptocurrency to the value of these real-world assets and maintain their stability. But that has been proved problematic in the past. MakerDAO makes use of the MKR token to minimize price fluctuations. MKR is priced at around $3270. It is currently ranked 34th among cryptocurrencies with a market cap of over 3 billion dollars. DAI is priced stably at $1.
DeFi is growing in popularity rapidly. New projects and huge investments are entering the market every day. These are the best DeFi crypto coins in 2021. All the coins listed here have solid basics and huge potential for growth.
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