Decentralised Finance, the peer-to-peer crypto network, is thriving as investors make it a part of their diverse crypto portfolio. And why shouldn’t they? DeFi allows investors to leverage the efficiency of smart contracts in order to lend, borrow, save and trade crypto coins and earn interest rates that are substantially higher than traditional banking returns.
So, how do the Top DeFi Coins Challenge Traditional Finance? Let’s take a look:
Decentralised Finance (or DeFi) emerged as blockchain developers created new applications to allow users to borrow and earn rewards and coins using their existing crypto assets. The sector formed in 2020 and skyrocketed in 2021.
The Decentralised Finance crypto market capitalisation stood at $113.45 billion at press time. Today, DeFi apps and platforms enable the full range of financial services- lending, trading, borrowing, decentralised exchanges, asset management and more.
Let’s find out the best DeFi coins for crypto enthusiasts to exchange, trade and HODL.
The Top DeFi Coins List
Here are the top DeFi coins to exchange:
Avalanche or AVAX stands at the top with a market capitalisation of $23,530,654,409 (~17,55,59,85,94,801 INR) at press time, a 24-hour climb of 10.47% and circulation of 245,292,939 AVAX. Circulation refers to the amount of Avalanche coins circulating in public and analogous to stock market shares.
Avalanche was launched in 2020 by Ava Labs and is a scalable blockchain solution that maintains decentralisation and security. Avalanche is powered by its token AVAX and diverse consensus mechanisms.
Designed with scalability in mind, Avalanche has a sub-second transaction time–at par with payments processors such as PayPal and VISA. In addition, it can process up to 6,500 transactions every second. As a result, Avalanche trumps Ethereum in gas fees by a wide margin.
Avalanche stood at $95.33 (~7,435 INR) at the time of writing. Buy Avalanche at Zebpay.
Terra LUNA has the second position on the top DeFi coins list with a market capitalisation of $23,029,537,501 (~17,18,20,61,57,504 INR) at press time, with a 24-hour jump of 4.04% and a circulating supply of 396,943,504 LUNA.
The Terra blockchain was created by Terraform Labs in 2018 and it operates on a proof of stake model, where validators verify transactions based on how many coins they hold. Proof of stake supporters believe that LUNA is less energy-intensive than other models, with low environmental impact.
The Terra Protocol is an open-source stable coin network controlled by stakeholders. Terra is an algorithmically governed blockchain protocol with various flat-pegged tokens (Terra stable coins) and a stabilising crypto-asset- Terra LUNA.
Terra LUNA currently costs $57.90 (~4,332 INR). Buy LUNA at Zebpay.
DAI stands next on the best DeFi coins list with a market cap of $10,406,438,141 (~7,76,53,15,36,012 INR) after a 24-hour jump of 0.02% and a circulation of 10,409,534,192 DAI.
DAI is a stable coin pegged to the US Dollar. MakerDAO regulates DAI’s value–its decentralised governance entity–to maintain cost stability. Like other stable coins, DAI aims to minimise volatility and offers benefits such as lower fees, speedy settlements, and secure transactions.
The underlying Maker Protocol allows anyone worldwide to produce the DAI stable coin using various cryptos as collateral. DAI is not backed by fiat reserves held in a bank, and its transparency is apparent on the blockchain at all times.
DAI’s cost was $0.998 (~78.35 INR) at the time of this writing. Buy DAI on Zebpay.
Chainlink or LINK is the next best DeFi coin with a market capitalisation of $8,051,079,383 (~6,00,77,39,58,883 INR) after a 24-hour surge of 3.46% and a circulating supply of 467,009,550 LINK.
Chainlink is an oracle network meant to play a key role in the real-world implementation of blockchain technologies. While a blockchain provides a decentralised, secure ledger for digital transactions, it can’t take input from the off-chain forces that impact markets, including fiat currencies, credit cards and weather and sports events.
As a decentralised oracle, Chainlink can offer inputs to smart contracts. Chainlink solves the issue of interoperability between otherwise isolated blockchains. LINK is its native currency used for all transactions within the Chainlink network.
Chainlink cost $17.24 (~1,357.9 INR) at the time of this writing. Buy LINK on Zebpay.
Uniswap or UNI is the final one making the best DeFi coins list with a market cap of $7,135,036,530 (~5,32,64,83,14,555 INR) after witnessing a 24-hour hike of 1.97% and a circulating supply of 632,257,417 UNI.
Uniswap is an automated Ethereum-based exchange with UNI as its governance token. While most exchanges maintain an order book, Uniswap holds liquidity reserves of various tokens created by charging a 0.3% fee on all trades.
The Uniswap platform was created on the Ethereum blockchain in 2018.
DeFi can help you accomplish more than traditional banks, regardless of your financial objectives. Leverage accessibility, low fees, high-interest rates, improved transparency, better security, and more. Be sure to use a reliable platform for diving into it. The best DeFi coins and more are available on Zebpay for Indian crypto enthusiasts.