4 Best DeFi Coins To Explode In 2022

Last Updated August 15th 2022

5 Min Read

DeFi or decentralized finance is an umbrella term that defines a financial system without third-party intermediaries such as banks. Instead, the entire ecosystem is dependent on every link in the chain rather than a central authority.

This fast-growing sector comprises financial instruments like cryptocurrencies, smart contracts, blockchain protocols, and decentralized apps (dApps). In this guide, we analyze the 4 best DeFi coins to explode 10x in 2022 so that you can enter the decentralized finance space while it is still in its infancy and make the most of it.

Uniswap (UNI)

The first coin on our list of the best Defi coins to watch is Uniswap. This project represents the true definition of decentralized finance insofar as it is home to an innovative exchange platform that allows traders to swap tokens on a peer-to-peer basis. In other words, in buying and selling crypto assets via Uniswap, no centralized party is required.

This is in stark contrast to the industry norm that is dominated by large centralized crypto exchanges such as Binance, FTX, and Coinbase. All of which sit between buyers and sellers – making huge commissions along the way. In the case of Uniswap, the exchange does not utilize traditional order books to match market participants.

Instead, the platform is home to an automated market maker – or AMM, model. Uniswap’s AMM will set token prices based on various variables – such as volume, demand, and market capitalization. This allows for a smooth and burden-free way of trading cryptocurrencies in a decentralized manner.

In terms of its native Defi coin – UNI, the project is a top 20 digital asset by market capitalization. When the token was first launched on public exchanges in 2020, you would have paid in the region of $7. Year-to-date 2022, UNI has hit highs of over $17. This represents a growth of over 140%. The coin is currently trading at $9.09 and is one of the best 4 DeFi coins to explode 10x in 2022.

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

Decentraland (MANA)

The Metaverse is expected to become extremely popular in the coming years, with the likes of Facebook rebranding its NASDAQ-listed company name to Meta Platforms. And as such, if you are looking to invest in this growing concept early, you can purchase some MANA tokens – the native digital asset of Decentraland.

In its most basic form, Decentraland is a project built on top of the Ethereum blockchain that offers a virtual gaming world that can be accessed by all. One of the most innovative things about Decentraland is that users can buy virtual land and subsequently build digital real estate.

This real estate – alongside a full suite of other in-game items, can then be sold on the open marketplace. This business model has already achieved proof of concept for several reasons. First and foremost, some real estate plots sold via the Decentralized platform have raised more than a million dollars.

Second, the MANA token used for all purchases and sales made via the Decentraland platform is now a multi-billion dollar project. In terms of performance, MANA was worth a mere $0.025 back in 2018. In mid-2021, the crypto asset hit highs of almost $6. And as such, this represents significant growth of nearly 24,000%. For these reasons, experts believe MANA to be one of the best 4 DeFi coins to explode in 2022.

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

Cosmos (ATOM)

Cosmos is a unique DeFi project and one of the top DeFi coins in the market. The Cosmos network aims to solve the problem of blockchain interoperability - a process that allows multiple blockchains to interact with each other.

By using open-source tools, Cosmos has provided a method for chains to share data and streamline transactions between them. Each new blockchain created is stored on the Cosmos hub, a proof-of-stake blockchain that operates with the network's digital token - ATOM.

ATOM DeFi tokens are used to complete network transactions and facilitate interoperability between different blockchains. ATOM is also distributed as rewards to network validators - the users governing the chain.

With a market cap of $3 billion, ATOM is one of the 30 largest cryptocurrencies. ATOM is currently trading at $11.74 and is likely to surge to new highs in 2022.

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

Cardano (ADA)

Cardano is a next-gen crypto project. It is intended to be a flexible, sustainable, and scalable platform for running smart contracts, allowing the development of a wide range of DeFi apps, new crypto tokens, games, and more.

Cardano’s native cryptocurrency is ADA, which can be used to store value, send and receive payments, stake, and pay transaction fees on the Cardano network.

Cardano’s goal is to be the most environmentally sustainable blockchain platform. It uses a unique proof-of-stake consensus mechanism called Ouroboros, as opposed to the energy-intensive proof-of-work system currently used by Bitcoin and Ethereum. (Ethereum is also moving to a proof-of-stake system via the ETH2 upgrade).

The Cardano blockchain is also divided into two separate layers: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances (and is where the transactions are validated by the Ouroboros consensus mechanism). The CCL layer is where all the computations for apps running on the blockchain are executed — via the operations of smart contracts.

The idea of splitting the blockchain into two layers is to help the Cardano network process as many as a million transactions a second. These aspects put ADA on the list of top 4 DeFi coins to explode 10x in 2022.

If you are looking for the best cryptocurrencies to buy, then consider these four digital assets on the watch list of most crypto experts.