DeFi cryptocurrencies have been gaining traction since 2020. Despite the sluggish performance of the broader cryptocurrency market in Q1 of 2022, DeFi adoption continues to rise.
It's an indicator that finance is increasingly tilting away from centralized entities. From an investor perspective, this means now is a perfect time to be accumulating decentralized finance cryptocurrencies that could do well, not just in 2022 but for years to come.
If you have been scouting the market for DeFi opportunities, below are 10 DeFi cryptocurrencies that have the potential to explode in 2022 and beyond.
Top 10 DeFi Cryptocurrencies 2022
Uniswap UNI is a decentralized exchange that allows crypto users to buy and provide liquidity directly from crypto wallets at close to no cost. The Uniswap automated market maker technology provides ample traffic for quick trades on its platform, making it an ideal place where traders can engage in high-volume trading easily, with little effort or expertise needed. Since decentralized asset exchange is an integral part of DeFi, Uniswap stands out among the top 10 DeFi cryptocurrencies that could gain value in 2022.
Don't Miss: Uniswap (UNI) Price Prediction
Lending cryptocurrencies and earning rewards on deposits sounds like a great opportunity, and many investors are adopting it. Aave is one of the blockchains that level the playing field, allowing for lending and borrowing cryptocurrencies. Besides, Aave has a mechanism for rewarding those who stake Aave tokens with lower fees while borrowing and lending. Given that DeFi is on a growth trajectory, Aave has all the hallmarks of a DeFi cryptocurrency that could explode in 2022 and for years to come.
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The Synthetix (SNX) decentralized exchange is revolutionizing the way people trade stocks, commodities, and other asset classes that traditional financial institutions still dominate. Synthetix is doing this by tokenizing these assets, making them available to all investors. As more people adopt the trading of synthetic tokens, Synthetix is a DeFi cryptocurrency that could rally in 2022.
Check Out: Synthetix (SNX) Price Predictions
With the help of Polkadot, blockchains can communicate with each other without any interference. This creates an internet where trust is unnecessary, and transactions are hassle-free.
The ability to interconnect different blockchains puts Polkadot right in the middle of the DeFi market. For DeFi to thrive at scale, it is essential for different blockchains to interlink with each other easily. Essentially, as the entire DeFi space grows, so does Polkadot. By virtue of its positioning in the DeFi market, Polkadot is a DeFi cryptocurrency that could do well for years to come.
Check Out: Polkadot (DOT) Price Prediction
For Decentralized Finance to thrive, it needs fast speeds and a blockchain that can run with minimal downtimes. It's no surprise that Avalanche has managed to gain some traction in the DeFi market. Avalanche is able to handle up to 4500 TPS and at some of the lowest transaction speeds in the market. These features have enticed many DeFi projects to build on top of Avalanche. When you factor in the fact that Avalanche is interconnected with DEXs like SushiSwap, it is not hard to see why it is a DeFi cryptocurrency that has the potential to do well in 2022 and for years to come.
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Terra brings out the best aspects of centralized finance systems like banks or credit cards alongside decentralized currency types such as Bitcoin into one easy-to-use platform. Terra is doing this through algorithmic stablecoins that are set to become a critical aspect of DeFi going into the future. That's because they have the stability of fiat while at the same time being censorship-resistant. Given how fast algorithmic stablecoins are growing in adoption, it is not hard to see why Terra is a DeFi cryptocurrency that could outperform the market going into the future.
Check Out: Terra (LUNA) Price Prediction
Cardona is a blockchain project with an ambitious goal: to become cleaner than Bitcoin. Cardano uses less energy than Bitcoin and Ethereum while still maintaining some of the best security capabilities in the crypto space. In 2021, Cardano announced that it was putting $100 million investment into developing a DeFi and NFTs ecosystem while also building up user understanding of these two aspects of blockchain technology. The potential impact of this investment, coupled with Cardano's technical capabilities, makes ADA one of the top 10 DeFi cryptocurrencies to keep an eye on in 2022.
Check Out: Cardano (ADA) Price Prediction
All smart contracts DeFi, or otherwise, need Chainlink to run efficiently. That's because it acts as a bridge between them and real-world data. As the DeFi space grows, so does Chainlink's use case. Essentially, as hype builds up around DeFi in 2022, Chainlink stands an excellent chance to grow in value. Besides, Chainlink has been taking steps to position itself as a top player in the DeFi space.
In 2021, Chainlink announced the launch of a Programmable Token Bridge that makes it easy for DeFi blockchains to communicate with each other. The goal is to reduce scaling issues and drive mass adoption. With such capabilities, it is not hard to see why Chainlink is a DeFi cryptocurrency that could outperform the market in 2022.
Check Out: Chainlink (LINK) Price Prediction
Solana's revolutionary proof-of-history concept is changing the way we think about consensus mechanisms. Instead of mining or staking tokens to verify transactions, all interactions are confirmed with an official time stamp that cannot be forged because it comes from within Solana itself. This approach has made Solana one of the fastest blockchains in the market today. Since DeFi needs scalability, Solana is a top 10 DeFi cryptocurrency to watch as the whole DeFi space takes off.
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Polygon's many features make it an attractive option for developers who want to build on top of Ethereum. These include scalability, security, and interoperability necessary for DeFi to thrive. Now that Ethereum 2.0 is almost here and will rely heavily on layer-2 solutions like Polygon, there is no doubt that there will be a DeFi explosion on Polygon since Ethereum is the most preferred network for DeFi. For such potential, Polygon is a DeFi cryptocurrency to keep an eye on in 2022.
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Open an account with eToro, deposit some funds with USD, and finally – buy DeFi cryptocurrencies for just $10.
Virtual currencies are highly volatile. Your capital is at risk.