3 Cryptocurrencies That Are Shaping The Future Of DeFi

Forget Ethereum; buying these three DeFi cryptocurrencies now could double your investment in the long run.

Last Updated September 14th 2021

7 Min Read

Decentralized finance (DeFi) tokens are one of the most hyped-up assets in the cryptocurrency space today. As a result, the DeFi market has seen colossal growth in 2021, and investors are in search of the best DeFi projects. To assist you in your search for the best digital assets, here is the list of 3 cryptocurrencies that are shaping the future of DeFi today.

DeFi has emerged as a viable competitor to the traditional finance environment, changing how the world borrows, lends, and saves. Let us see why these are the top three DeFi coins to buy now.

Key Points

Uniswap has emerged as one of the leading decentralized crypto exchanges, shaping the future of DeFi space.
For those looking to become an early investor in the DeFi market, AAVE is a good buy.
The price of CRV token has seen a significant rise since the beginning of 2021.

Best 3 DeFi cryptocurrencies to buy now:

1. Uniswap (UNI)

Uniswap is one of the biggest exchanges in the decentralized finance (DeFi) space that aims to reshape the future of DeFi.

Uniswap is one of the leading exchanges on the Ethereum network, and investors have staked more than a billion dollars in cryptocurrency on the platform. It is basically a decentralized finance protocol on the Ethereum blockchain that allows users to buy, sell and trade by deploying smart contract technology. The price of UNI, the native token of Uniswap, has seen a colossal rise in 2021. Users can earn UNI by just providing liquidity on the platform.

Significant Features Of Uniswap

A combination of factors has led to the popularity of Uniswap, making it one of the top cryptocurrencies that are shaping the future of DeFi. Notably, investors who use Uniswap can easily swap their cryptocurrencies directly from Ethereum wallets. It eliminates the need for the exchange to have custody of their funds. This will eventually reduce the risk of being hacked by adding a layer of security.

Moreover, users can maintain complete control over their funds because of its decentralized nature. People can become liquidity partners and can pool their money with other individuals on Uniswap. In exchange, the liquidity provider will receive a percentage of every trade. Investors can also stake their UNI tokens for liquidity to earn interest in their investments.

Uniswap is a potential DeFi cryptocurrency that solves the issues of liquidity efficiently. A significant feature of Uniswap that makes it different from other decentralized exchanges is the use of a pricing mechanism known as the Constant Product Market Maker Model.

This desirable feature of Uniswap allows it to provide liquidity, no matter how large the order size or small the liquidity pool is. Any token can be added by asymptotically increasing the price of the coin as the desired quantity increases.

The Launch Of Uniswap V3

Another factor boosting the investability quotient of Uniswap is the launch of its latest upgrade Uniswap V3. It was launched earlier this year in May and backed Uniswap on the map again, significantly increasing the price of UNI. The biggest upgrade in UNI V3 is called the concentrated liquidity. It uses non-fungible tokens (NFTs) and allows investors to set a specified range of prices to provide liquidity. Since the code is highly exclusive to Uniswap for the first two years, it provides the crypto an advantage over others in the marketplace.

The upgrade also pushed the value of UNI by bringing excellent features like enhanced efficiency and more liquidity to the decentralized exchange. It also has reduced the amount of capital required to provide liquidity. Thanks to its lower transaction fees, the update has thus made Uniswap more accessible to a new class of users, boosting its adoption rate.

Check Out: Is Uniswap a Good Investment and Should I Invest in UNI?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Aave (AAVE)

Another DeFi crypto worth buying is Aave. It strives to shape the future of DeFi by introducing an efficient way of cryptocurrency lending.

AAVE is one of the biggest DeFi coins in the market today. The Aave protocol is a decentralized open-source liquidity protocol that allows users to participate as borrowers or depositors. Depositors provide market liquidity along with earning a passive income, while borrowers can seamlessly borrow assets.

Significant Features Of Aave

The Aave protocol offers several exciting features like flash loans, which allow users to borrow assets without collateral. As a result, Aave is considered the world’s bank by several cryptocurrency enthusiasts. Aave can be used as a high yield savings account for their cryptocurrency and stablecoins by anyone with internet access.

Moreover, Aave also offers anyone to take out loans without credit approval. Instead of credit, Aave uses cryptocurrency as collateral. If any user defaults on their loan, their crypto will be sold to pay off the loan. Therefore, buying AAVE also means supporting a rapidly growing technology that would alter the way of lending in the future.

The Safety Module is yet another notable feature of the Aave protocol. The staked AAVE tokens will act as insurance against any potential shortfall events. If it occurs, up to 30% of the safety module tokens could be slashed back and accurately payback to those affected by the event. Furthermore, all assets are managed by smart contracts on the Aave platform, eliminating the need for a middleman. As a result, users do not have to rely on any person or institution to manage their funds; instead, the networks of computers running Aave will ensure its safety.

Aave Pro: A landmark In The De-Finance History

Aave is one of the top cryptocurrencies that is shaping the future of DeFi as it has introduced institutional investors to the domain of De- Finance. Aave’s pro version might be one of the landmark events in De-Finance history. It would bring a permissioned platform specifically designed for institutional investors. It will also allow institutions to lend, borrow, and earn on Bitcoin, Ethereum, Aave, and stablecoins.

The official release by Aave says, “The arrival of the ‘Pro’ version would create better opportunities for institutions to enter DeFi.” This indicates a high ROI in the near future as more institutional investors start adopting AAVE.

Don't Miss: 17 Reasons Why You Should Invest in AAVE Today

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Curve (CRV)

With the ongoing developments and upgrades on the platform, CRV could emerge as the top DeFi coins in the future.

Curve has become the leading player in Ethereum’s decentralized finance ecosystem since its inception in 2020. It is basically a decentralized exchange that facilitates the creation of liquidity. Precisely, Curve is a liquidity aggregator. Moreover, the DeFi exchange offers two main functions. One as a platform to swap similar ERC-20 tokens like USDC, DAI, and second Ethereum based Bitcoin tokens like wBTC and renBTC.

Significant Features Of Curve

Curve is the favourite among stablecoin traders and liquidity providers searching for minimal slippage and high liquidity, indicating a high ROI from CRV for investors. Yet another significant feature of the CRV coin, which makes it one of the top DeFi coins to buy now, is its ability to provide liquidity through stable coins for a specific period. Investors who lock up stable coins for a certain period earn rewards as protocol fees and governance votes. Therefore, Curve tackles a significant problem in the Stablecoin community, the lack of dedicated services.

Investors, who lock up stable coins on CRV for a while, earn protocol fees and governance votes as a reward. The developers combined proprietary systems that allowed efficient stablecoin trading, passive rewards for liquidity providers, and low-risk transactions.

Why Is Curve A Good Buy?

The price of Curve (CRV) tokens has seen immense growth later this year. There are three primary reasons for the latest surge in volume and price for CRV. One is its new collaboration with the Yearn.finance ecosystem. The second reason is the positive regulatory developments in the US which pushed the value to triple since the beginning of 2021. Since Curve DAO platform is one of the largest decentralized exchanges for stablecoins that manages liquidity by using an automated market maker (AMM), the change could increase the CRV adoption rate with more people preferring the platform.

The third factor behind the surge in CRV’s volume and price is the significant increase in engagement in the platform, which eventually boosted the total value locked.

A fundamental factor in the success of any cryptocurrency project is the engagement of its community. Curve has taken several initiatives like the launch of crowdfunding earlier this year, extending opportunities to a broader community to participate in its ambitious growth strategy. It is best to buy CRV now to secure good returns in the future since the token continues to expand its network capabilities.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Bottomline

Alex Pack, a managing partner at Dragonfly Capital, a $100 million crypto fund, says, “The goal of DeFi is to reconstruct the banking system for the whole world in this open, permissionless way.” It has become an integral part of the cryptocurrency space, continuously disrupting the traditional financial systems. These cryptocurrencies have interesting developments lined up for the future, making them the top 3 cryptocurrencies shaping the future of DeFi.