One of the recent trends that have been extremely popular amongst crypto investors is the world of decentralized finance. Also known as DeFi, this technology aims to reanalyze and renew the conventional financial instruments within a decentralized architecture.
In addition to this, DeFi is also designed to eliminate the need to collaborate with trusted third parties and evening the current economic playing field.
In simple words, DeFi tokens help to lend and borrow money from others, practice active trading of cryptocurrency, make suppositions on the movement of price movements, insure against potential risks, and start earning interests for savings accounts.
DeFi comes with a plethora of benefits. If you would like to take a chance on today’s market, you can use the list of these DeFi coins to get started!
The Top 5 Best DeFi Coins in 2021
Undoubtedly, the world of decentralized finance and DeFi coins is becoming bigger and bigger every day. However, here are the top 5 DeFi coins you need to have your eye on in 2021.
One of the leading DeFi cryptocurrency exchanges of the 21st century is Uniswap. This system uses an automated liquidity protocol, a unique trading model, and works via the ERC20 DeFi token.
It was first launched in 2018, and the entire platform is held with an innovative Ether blockchain technology. This makes Uniswap suitable for every crypto wallet service and token in the market!
Moreover, this system runs on software that is 100 open-source. In layman’s terms, this means you can easily copy your codes and create your unique DeFi coins and tokens!
In addition to this, Uniswap allows every crypto connoisseur to list down their token without any extra fee!
Currently, the native token for Uniswap is UNI which gives its users the freedom to vote on all major changes and developments, including token distribution, fee structures, and so on. You can also see trade on a 24-hour volume as the platform allows you to take part in the live market price.
Yet another leading oracle in the cryptocurrency market is Chainlink. This platform works using various networks to accelerate merging between several off-chain data and transform them into smart contracts.
Today, their LINK token supply has touched a whopping 419 million mark which is almost 41% of their pool!
Chainlink was first developed in 2019, and ever since its launch, it has made an exponential growth, thanks to the increasing interest and demand in decentralized platforms. Not only does this platform fund itself, but it has also started to help other similar crypto initiatives. By doing this, the value of Chainlink’s ecosystem receives a massive boost.
In terms of trading and other fundamentals, Chainlink has a trading volume that goes on for 24-hour and runs with more than $700,000,000. However, its current cost has also been forecasted to reach a higher trajectory by various crypto enthusiasts.
Next up, we have DAI, which was created by the Maker Protocol and MakerDAO.
Unlike the other DeFi coin platforms, this one is a stablecoin platform that runs on an Ethereum blockchain. In addition to this, the USD fiat currency is also soft-pegged to it, making DAI the first of its crypto kind.
One of the major high points of DAI is the soft-pegged factor. This is correlated to the same value as the US dollar making it kind of a safe-haven asset as it comes with stable prices, which allow investors to balance between the changing price movements.
If you are looking for a reliable DeFi lending platform, Compound is the best one to opt for. Compound gives all its users the power to use their digital assets to earn profits and interests. Once they do this, they can store them in a liquidity pool.
In addition to this, the users also get several Tokens as an exchange reward for depositing their interests to their “Compound” pool.
However, the selling point of this platform is that it enables those who deposit using Ethereum tokens to reap profits. Therefore, those who hold the COMP DeFi token have the freedom to suggest new modifications to the lending concord and how they can distribute the tokens.
Over the years, Compound has been surging in popularity within the DeFi market and the COMP DeFi coin.
Last but not least, we have Ox, a decentralized finance protocol that runs with the supports trade of ERC20 DeFi tokens between different peers. In addition to the ERC20 DeFi tokens, Ox also allows exchange between other digital currencies that are a part of the Ethereum blockchain.
This protocol is extremely beneficial to the users. It made trading of ERC20 tokens ten times easier by eliminating the dependency on conventional cryptocurrency exchanges.
This exchange system is run with a set of open-source smart contracts, which help to create a smooth, straightforward trading protocol. This is also an extremely versatile program as it allows the developers to use it for products and services.
Unlike the other Ethereum decentralized exchange protocols, Ox stands out mainly because it can support both NFTs (non-fungible tokens) as well as the ERC20 and ERC723 (fungible tokens).
In simpler words, users can now use the ZRX tokens to make permissionless trading for purchasing online goods and services on various e-commerce marketplaces.
The Bottom Line
If you are involved in the world of cryptocurrency trading, you may have heard the term “DeFi coins and tokens” at least a few times.
This is because these coins are all the rage right now, and various crypto enthusiasts, traders, and business people from all over the world are using these to profit off of potential growth.
Moreover, we are continuing to move towards a focal point in history, one where we start to uproot the traditional cryptocurrency exchanges and replace them with a new and improved digital decentralized financial system!