What is DeFi? Top 5 DeFi Tokens to BUY


What Is Decentralized Finance? 

Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.

Some of the key attractions of DeFi for many consumers are:

  • It eliminates the fees that banks and other financial companies charge for using their services.
  • You hold your money in a secure digital wallet instead of keeping it in a bank.
  • Anyone with an internet connection can use it without needing approval.
  • You can transfer funds in seconds and minutes.
Here is a list of DeFi Token arranged by their Market Cap :

1. Terra ($LUNA)

Market Cap: $28,349,446,622 | Price (LUNA): $79.41| Total Supply: 828,506,332

Terra's native currency Luna was made for governance and mining and used to issue stable coins, pay network fees, and participate in governance votes. It is a versatile token in the network that is extremely important in the rise of the terra platform.

2. Avalanche ($AVAX)

Market Cap: $23,455,700,447 | Price: $96 | Total Supply: 395,891,290

Avalanche has been a relatively younger player in the DeFi space. But, its rapid rise has made it a tough competitor. Now, after going against the broader market trend, it’s cementing itself to be a top-tier asset. 

Avalanche is a layer-one blockchain that functions as a platform for decentralized applications and custom blockchain networks. It is one of Ethereum’s rivals and aims to unseat it as the most popular blockchain for smart contracts.

3. Chainlink ($LINK)

Market Cap: $12,455,700,447 | Price: $26 | Total Supply: 1,000,000,000

It is a decentralized blockchain network built on Ethereum. It uses an oracle network that allows the blockchain to interact with data that is off-chain (outside the blockchain), bridging the gap between conventional data and a decentralized environment. Simply put, it provides critical information present outside the blockchain to smart contracts. This helps smart contracts receive data like payments, temperature from a sensor, and even scores from a football game.

The Chainlink network consists of large data providers and node operators feeding information to the smart contracts in the blockchain. Users in the network can act as node operators to earn revenue in the blockchain’s native token LINK.

4. Cardano ($ADA)

Market Cap: $42,461,305,416 | Price: $1.27 | Total Supply: 33,968,614,581

Cardano (ADA), one of the world’s largest blockchain projects, is sometimes called the “Green Blockchain” because of its impressive energy use reports and proof of stake protocol. Cardano announced last month that it’s getting an ecosystem boost from its recent $100 million investment in decentralized finance, NFTs, and blockchain education.

5. Polkadot ($DOT)

Market Cap: $26,916,864,793 | Price: $27.26 | Total Supply: 1,103,303,471

It facilitates an internet where independent blockchains can exchange information and transactions in a trustless way via the Polkadot relay chain. This makes Polkadot, and projects who choose to build on Polkadot, much faster and scalable than Ethereum’s current offering. By acting as a foundation for DeFi projects to build upon, it’s aiding the growth and potential of the network as a whole.

Post a Comment

0 Comments