What Top 10 DeFi Cryptocurrencies To Invest In 2021?

Will DeFi Coins Reach New All-Time Highs and Bring Great Gains to Investors?

Last Updated July 23rd 2021
30 Min Read

This article takes an in-depth look at decentralized finance, some of the best DeFi coins on the market and the role DeFi plays in how people go about their financial activities.

Most importantly, it would find answers to the question, what top DeFi cryptocurrencies to invest in 2021?

Decentralized Finance (DeFi) has a trade volume of $20.6 billion and market capitalization of $129.16 billion having increased by 30.36% in the last 24 hours. After coming out of the market crash brought forth by the coronavirus pandemic in the second half of 2020, DeFi gained enormous traction in the world of crypto.

This was the first time several people who call themselves financial gurus heard names such as Uniswap and Yearn Finance. At the time, these DeFi tokens were recording great daily volumes. They were reaching prices which saw them record new all-time highs in the process.

Most DeFi protocols or applications run on the blockchain of Ethereum (ETH). Coindesk has pointed out that Ethereum is now defined by decentralized finance.

With a new passive income on the line, several questions have started cropping on the internet. Most of these questions are best DeFi coins to invest in, what are the risks of DeFi and how much money is locked in DeFi projects?

It may come as a surprise to several traders and investors that several DeFi coins have relatively higher prices than cryptocurrencies. What drives the price of these tokens? What functions do they provide users?

Most importantly, for novice traders and investors - what top cryptocurrencies should you invest in to bring you gains in the future?

What Top 10 DeFi Cryptocurrencies To Invest In 2021?

Here are the top 10 DeFi coins to invest in 2021, their pros as well as what analysts are saying about them which makes them a good investment.

  1. Maker (MKR)
  2. Uniswap (UNI)
  3. Compound (COMP)
  4. Chainlink (LINK)
  5. Aave (AAVE)
  6. Yearn Finance (YFI)
  7. Curve Finance (CURVE)
  8. PancakeSwap (CAKE)
  9. Synthetix (SNX)
  10. Terra Luna (LUNA)

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Decentralized Finance at a Glance

In the last 10 months, DeFi has been trending across social media platforms (Twitter, Facebook and Reddit). Search engines have also seen a huge rise in the number of people searching for information about the new category of blockchain technology. 

Unfortunately, several articles found online do not conduct an extensive review of decentralized finance. More importantly, most articles fail to hammer on the importance of DeFi and why it could give centralized banks a relatively stronger competition in the near future. Let us take an in-depth look about all the components which make up decentralized finance.

What is Decentralized Finance (DeFi)?

Decentralized Finance is a term which encompasses the vision of having a financial system that functions without centralized intermediaries such as traditional banks, exchanges and brokerages to offer traditional financial instruments. 

Instead, DeFi utilizes the possibilities of blockchain through smart contracts to allow people to earn interest in savings-like accounts, insure against risks and trade cryptocurrencies. Additionally, DeFi allows people to speculate on price movements on a range of assets using derivatives and borrow or lend funds from others.   

What Are The Components Of DeFi?

Components of a DeFi system belong to a software stack. Each layer component has a specific function it performs. One of the characteristics in defining a stack is “composability.” This is important because each layer has components which must be merged together to create a DeFi app. The four layers which comprise a DeFi stack are Settlement, Protocol, Application and Aggregation Layer.

The settlement layer is the base layer upon which other decentralized transactions are built. It is normally referred to as Layer 0. It comprises a public blockchain and its novel token (cryptocurrency or digital currency). This novel token is used to settle transactions which occur on the DeFi applications and could be traded in public markets such as crypto exchanges.

The protocol layer comprises a set of rules and standards which are written to govern specific activities or tasks. Since DeFi protocols are interoperable and can be used by several entities at the same time to build applications, the protocol layer has a primary function of providing liquidity to the DeFi ecosystem. 

The application layer hosts consumer-facing applications. These applications break underlying protocols into understandable consumer-focused services. This layer host decentralized lending services and cryptocurrency exchanges

The aggregation layer comprises aggregators which ensure there is connection between various applications from the application layer. A technological framework simplifies the rails of investment which allows traders to switch between different services in a quick manner. Borrowing and lending, crypto wallets and banking services are examples of services which exist on the aggregation layer.

Read More: A Brief Guide To DeFi

How Much Money Is Locked Up in Decentralized Finance?

As per data retrieved from DeFi Pulse, Total Value Locked in DeFi is $76.73 billion.

With that said, DeFi tokens in 2021 are providing a full range of services. They range from loans and mortgages to complicated contractual relationships and asset trading. All these financial processes are completed without the usual centralized process which deals with documentation to complete transactions.

Top DeFi cryptocurrencies to invest in 2021:

1. Maker (MKR) - from the first DeFi App to being valued at more than $5,000.

Maker is the pioneer of all decentralized applications (DAPPS). Created by Rune Christensen in 2015 but fully launched in 2017, Maker is the governance token of the Maker Protocol and Maker DAO.

Maker DAO is a decentralized autonomous organization while Maker Protocol is a software platform. Maker is based on the blockchain of Ethereum. Maker grants users permission to issue and manage the DAI stablecoin which is pegged to the United States dollar.

As at 4th May 2021, $12.31 billion has been locked in Maker. Maker trades under the ticker symbol, MKR. At the time of writing, MKR has a price of $5,463.82, trade volume of $1.27 billion and market capitalization of $5.5 billion. The digital asset reached an all-time high of $6,339.02 on 3rd May 2021.

As a lending platform, MakerDAO’s success from 2020 up to May 2021 has been its decentralization. Anyone with an internet connection and fiat currency which is ready to be converted into cryptocurrency can access Maker.

Unlike traditional banking institutions where users are summoned to identity checks through the provision of government-issued cards, Maker forgoes this bureaucratic process. The Knowing Your Customer (KYC) phase is cut off.  Instead, Maker uses cryptocurrencies as the primary collateral users need to borrow money.

Since the protocol runs on Ethereum’s blockchain, the native token of the blockchain Ether (ETH) becomes the collateral cryptocurrency. Others such as BAT (an ERC-20 token) can also be employed as collateral.

Maker Price Performance in 2021

Maker has crossed several milestones in 2021. MKR opened on 1st January 2021 at a price of $587.02. The crypto trading asset tested $1,000 for the first time on 6th January and reached an all-time high of $1,244.73 towards the end of the month.

The digital asset surpassed the $2,000 price milestone on 4th February 2021 and closed the day at $2,088.43. What followed were several corrections in price due to huge sell-off by investors who had reached their investment goals.

MKR traded for a coin above $3,000 for the first time on 15th April 2021 and settled at $3,770.80. Six days later on 21st April, the crypto trading asset tested $4,000 for the first time and closed the day by exchanging hands for $4,020.19. MKR surpassed $5,000 in price on 2nd May. On Monday, 3rd May 2021, Maker crossed $6,000 with trade volumes above $1 billion.

In the space of five months, MKR has returned 979.864% for investors.

Such gain is what has made experts at Wallet Investors predict bullish sentiments about Maker.

According to experts at Wallet Investor, Maker (MKR) could have an average trading price of $6,573.620 by the end of 2021.

The experts further forecast the price of Maker to trade for a coin at an average price of $9,329.930 by the close of 2022.

Experts at Wallet Investor think Maker can continue to soar in the long term if it continues to make headlines like Maker DAO bringing real estate to Decentralized finance in April 2021.

The Maker Protocol minted $38,000 DAI stablecoins to finance a mortgage loan. The experts conclude that MKR could exchange hands for $12,074 by the end of (2023), $14,824.80 (2024), $17,572 (2025) and $19,077 on 2nd May 2026.

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2. Uniswap (UNI) - Can Uniswap Challenge Binance’s Status as the largest cryptocurrency exchange globally?

Uniswap is one of the most popular decentralized trading protocols as well as one of the oldest. Hayden Adams created Uniswap and launched the decentralized exchange (DEX) in November 2018.

Uniswap has made great gains in 2021 thanks to the craze for digital assets of all forms. Uniswap created its governance token UNI in September 2020 to long term users of the protocol.

Uniswap is also known for solving the liquidity problems that earlier slowed the progress of decentralized exchanges. Uniswap facilitates automated trading of DeFi tokens. Since Uniswap runs on the blockchain of Ethereum, ERC20-based tokens are traded.

Users are rewarded with fee income as a result of their status as Market Maker. Market Maker simply means the users provide liquidity services to enable token swapping. Unlike centralized exchanges which demand documentation, Uniswap allows users to make transactions with no bureaucracies in the process.

Overall, Uniswap has features such as high liquidity, external wallet integration, user-friendly operations, full control over user’s private keys and low fees.

At the time of writing, UNI has a trading price of $41.23, trade volume of $1.57 billion and market capitalization of $21.7 billion. The total value locked in Uniswap DeFi is $7.2 billion.

Uniswap Price Performance in 2021 

UNI opened on 1st January 2021 at a price of $4.14 and closed at $5.17. The crypto trading asset closed 31st January at an improved price of $17.53. In a 30-day period, UNI gained 323.43%. Uniswap opened 1st February at $17.70 and by the end of March was exchanging hands for $27.99. UNI reached an all-time high of $44.97 on 3rd May. UNI has returned 986.232% year-to-date.

Such gain in price is what has propelled analyst Arslan Butt of FX Leaders to make bullish predictions about the crypto token. 

According to Arslan Butt of FX Leaders, Uniswap could have a trading price of $55 by the end of the first half of 2021. Such a price would be backed by symmetrical triangle breakout, bullish engulfing DeFi market and weak U.S. dollar.

Due to the low fees and automated liquidity provided by the decentralized exchange, the analyst further estimates Uniswap to trade in the region of $55 to $76 by the end of 2021. The price drivers which could ensure this price are basically technical analysis (161.8% and 227.20% Fibonacci extension and MACD & EMA Support).

FX Leaders foresees a long term potential in the token and thinks Uniswap could reach as high as $150 in the next three years (2024). Such a price could be driven by bearish correction due to an overbought indication.

Read Also: Could Uniswap (UNI) Be a Millionaire Maker Coin? 

3. Compound (COMP) - from $0 to a high of $878.14 in less than 3 years, is Compound on its way to $1,000?

Compound was founded by Geoffrey Hayes and Robert Leshner in 2017 to provide an open lending platform where users who make deposits in the form of ERC-20 tokens can easily take out secured loans. By creating such an innovative product, the founders provided an answer to an important question, how do I borrow from DeFi?

Additionally, users can also earn interest on their idle balance. The team behind the development of the Compound Protocol is Compound Labs, Inc.

Compound like several decentralized applications run on the blockchain of Ethereum. After three years of using Ether as the primary medium of making deposits, Compound launched its novel token called COMP in June 2020.

The primary driving force behind the excitement within the Compound Community has been attributed to a series of governance votes to effect changes in the protocol. You can be a part of the governance if you hold 10,000 (1%) of total COMP supply. 

Additionally, there is the approval for the second batch of development grant recipients. This is to help communities govern projects they care about. Through this, Compound Grants will be able to more effectively poll token holders about what project should be funded next.

At the time of writing, COMP has a trading price of $749.54, trade volume of $421 million, $9.81 billion in total value locked in DeFi and market capitalization of $3.8 billion in the last 24 hours.

Price Performance of Compound in 2021

COMP opened on 1st January 2021 at a price of $149.92 and closed the day at $145.39. Compound tested $200 for the first time on 13th January and settled at $211.21. The crypto trading asset surpassed $300 on 29th January trading at a day high of $300.80.

On 4th February, Compound followed the crypto boom of the month and rallied to test the $400 price milestone. COMP reached a new all-time high of $496.21 to close out the day. This was followed by a sharp rise in price on 5th February to reach a new high of $549.88 leaving predictions of a $500 price in the dust.

A huge sell-off followed the huge gains made by COMP by investors as the digital asset corrected to $398.39 to close March. A recovery ensued in the month of April as COMP crossed $600 for the first time on 23rd April to close the day at $622.52.

COMP surpassed predictions by various experts and analysts and tested $700 on the last day of April. It settled at $742.87. COMP reached an all-time high of $878.14 on Sunday, 2nd May.

In a five month period, COMP has returned 485.739% for investors.

The Economy Forecast Agency, popularly termed as Long Forecast, has tagged COMP as a crypto asset with strong buy rating

According to the experts at Long Forecast, Compound could trade for a price as high as $3,294 on 31st December 2021. Long Forecast further predicts COMP to have a trading price of $3,493 by the end of 2022.

Despite predictions by several online crypto portals about a bearish season in 2023, experts still remain bullish. Long Forecast estimates COMP to reach trading prices of $4,259 and $3,886 by the end of 2023 and 2024 respectively.

If the crypto trading asset carries on updating its protocol, positive crypto market sentiment for DeFi and favourable technical indicators could see COMP exchange hands for $7,195 by the end of June 2025.

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4. Chainlink - Will Chainlink be a Millionaire Maker in the Future?

Founded by technology entrepreneur Sergey Nazarov and technology officer Steve Ellis in 2017, Chainlink came into the saturated market of blockchain technology with a unique feature. The technology provides real-time data which helps several individuals and businesses.

Chainlink is an open-source technology which is collectively developed by a large community of researchers, users and developers. As a first mover in the decentralized oracle space, Chainlink has reached numerous milestones which has had a positive effect on the price of its native token (LINK).

Chainlink has surpassed 500 partnerships and integrations. It has at least 500,000 active wallets which have balances more than $0. To show you its strength in decentralized finance, Chainlink has forged partnerships with 213 DeFi projects using its technology to provide them with real-time solutions.

With more partnerships in the pipeline, activity on the novel token LINK is going to increase substantially in the future since it powers the protocol.

Chainlink has more than 144 developers creating new decentralized applications for its network. It constantly upgrades its network. The recent upgrade provides a ten-fold increase in the amount of real-world data which can be made available to smart contract applications.

At the time of writing, LINK has a price of $47.21, trade volume of $5.13 billion and market capitalization of $20.14 billion in the last 24 hours.

LINK Price Performance in 2021

LINK opened on 1st January 2021 at a price of $11.27 and closed at $11.87. LINK tested $20 for the first time on 15th January and settled at $20.71 to close the day. 

Chainlink surpassed $30 and settled at $30.64 by the close of 12th February. The crypto trading asset crossed the $40 milestone for the first time on 14th April. It closed the day with a price of $41.42. In the process, LINK has returned 330.524% to traders and investors.

Experts at Digital Coin Price have weighed in on the possibilities of the DeFi coin on the market. 

According to Experts at Digital Coin Price, Chainlink could have a price of $70.04 by the year’s end of 2021. 

Digital Coin Price further estimates LINK to trade for a coin at $79.67 by the end of 2022. This can only happen if it continues to provide long term stability and viability to the decentralized finance market. 

Although 2023 is believed to be a bearish season by several experts, Chainlink could still reach $100.89 by 31st December of that year. 

Experts at the crypto news portal think more institutional investments such as that of Grayscale in March could take the price of LINK to average prices of $115.48 (2024), $138.65 (2025) and $163.85 (2026).

With more trade volumes and long term holders expecting further increment in price, Experts at Digital Coin Price predict Chainlink to have trading prices of $182.26 and $205.21 by the end of 2027 and 2028 respectively. Such bullish predictions certify LINK as one of the best DeFi coins to invest in 2021.  

Check Out: Is Chainlink a Good Investment?

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5. Aave - with $10.82 billion Locked In, Is Aave on its way to $1,000?

Founded in 2017 as ETHLend in November 2017 and rebranded to Aave in September 2018, Stani Kulechov created the decentralized application.

After being frustrated with a lack of lending DAPPS on the blockchain of Ethereum, he built Aave before decentralized finance (DeFi) even existed. The Aave Protocol allows users to lend and borrow in approximately 20 cryptocurrencies.

This gives users a huge range of digital assets to choose from. What sets Aave apart from other lending protocols is its main product called FLASH LOANs

Most lending applications running on Ethereum normally employ Ether (ETH) as collateral for loans. With Flash Loan, there is no need for collateral. This has seen Aave become the first DAPP in the space to make such provision. Such a unique feature has led to thousands of users on the platform.

This reflects the current price of $459.77, trade volume of $954 million and market capitalization of $5.7 billion recorded in the last 24 hours.

Aave (AAVE) opened on 1st January with a modest price of $87.54 and closed at $300.06 at the end of the month. The digital asset opened on 1st February at $300.04 and by the end of the month had a trading price of $344.87.

The crypto trading asset began March with a price of $345.19 and closed the first quarter of the year by exchanging hands for $377.01. AAVE opened at $377.18 on 1st April 2021. The DeFi token was insensitive to the announcement on the ban of cryptocurrencies as options of payments by Turkey in mid-April.

AAVE exchanged hands for $444.73 on 30th April. AAVE reached an all-time high of $532.79 on 3rd May. Overall Aave has returned 508.625% for investors.

Numerous experts and analysts have opined that AAVE is one of the best DeFi tokens on the market. Analysts on Coin Price Forecast in particular have made positive predictions which confirm the digital asset as one of the best DeFi coins 2021 has seen.

According to analysts at Coin Price Forecast, AAVE could exchange hands for $821 by the end of 31st December 2021.

The analysts believe AAVE’s unique feature of Flash Loans could propel its novel token to $1,307 by the end of 2022. Coin Price Forecast estimates Aave to exchange hands for $1,773 to close out 2023, $2,168 (2024), $2,361 (2025) and $2,331 (2027).

The analysts think that Aave’s plan to hold a token swap could see the token trade at a price of $3,158 by the end of 2030. It could potentially trade for as high as $3,696 by the close of 2032. The swap would reduce the total supply of AAVE from 1.3 billion DeFi coins to 16 million cryptocurrencies.

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6. Yearn Finance - Will Yearn Finance Reach $100,000 before Bitcoin?

The next best DeFi token on the DeFi coin list of top cryptocurrencies to invest in 2021 is Yearn Finance. The decentralized application was created by Andre Cronje in February 2020. Yearn Finance is an aggregator service for investors of decentralized finance.

As a yield aggregator, it does all the work related to yield farming for users. Instead of searching through decentralized lending applications such as Compound and Aave, Yearn Finance automatically scans through DAPPS on the blockchain of Ethereum and finds the best yield return. It trades under the ticker symbol YFI.

At the time of writing, Yearn Finance has $3.44 billion locked in, has a price of $51,732.10, trade volume of $503 million and market capitalization of $1.9 billion.

Yearn Finance Price Performance in 2021

YFI opened on 1st January at a price of $22,731.77 and closed the month at $30,176.13. Yearn Finance opened the month of February at $30.170.52 and ended the month by trading for a coin at $30, 695.31.

The digital asset began March with a price of $30,719.63 and ended the 1st quarter of the year with a price of $36,133.54. Yearn Finance was resistant to the ban by Turkey as well as the U.S. Treasury Department’s assessment of financial institutions which use digital assets for money laundering in mid-April. YFI closed April at a price of $48,901.34.

According to experts at Gov.Capital , YFI is estimated to have a price of $85,668.31 on 31st December 2021. Experts at Gov.Capital further forecast Yearn Finance to have a trading price of $115,000 by the end of 2022. Such bullish predictions signals potential gains which makes YFI a strong buy. 

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7. Curve Finance - Can Curve retest its all-time high price of $60.50 in the near future?

Curve Finance was founded by Russian Scientist Michael Egorov in 2020. Curve is a decentralized exchange (DEX) and one of the most used decentralized applications (DAPPS) in the world. It uses automated liquidity pools.

The primary difference between Uniswap and Curve is that Curve was specifically designed to exchange stablecoins. Other Bitcoin-backed ERC 20 tokens such as Wrapped Bitcoin (WBTC) can also be traded.

It has a price of $2.89, trade volume of $253 million, market capitalization of $787 million and has $6.5 billion locked in.

One of the pros of CURVE is that it caters to users who are involved in yield farming and liquidity mining. Additionally, users who look forward to maximizing returns without risk by holding notionally non-volatile stablecoins can also benefit from the possibilities of the decentralized exchange.

CURVE Price Performance in 2021

CRV had an opening price of $0.6275 on 1st January 2021 and closed the month with a price of $2.52. CRV faced selling pressure from holders and closed 28th February with a price of $1.76.

The digital asset increased slightly to end the month of March by exchanging hands at $3.13. The crypto trading asset closed the month of April at a price of $3.34.   

With a low trading price and potential in the market, experts at Digital Coin Price estimates Curve to have a price of $4.4 by the end of 2021. With new features to be added in the near future, experts believe the digital asset could exchange hands for $4.88 to close out 2022, $6.14 (2023), $7.33 (2024) and $8.67 (2025).

With positive market sentiments around the crypto market in the near future, CRV could trade for a coin at $10.24 to end 2026, $11.21 (2027) and $12.7 (2028).

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8. PancakeSwap - How much can CAKE trade for in the future after returning 6,982.4% year-to-date?

PancakeSwap was created by anonymous developers who had an intense passion for pancakes. It runs on Binance Smart Chain. PancakeSwap is an automated market maker which allows users to exchange tokens by providing liquidity by farming and earning fees in return.

One of the advantages of using PancakeSwap is that it allows its users to farm additional tokens such as SYRUP and CAKE.

Additionally, it allows users to trade BEP 20 tokens by providing liquidity to the exchange and earn from fees. Its novel token is CAKE. It has a price of $37.98, trade volume of $637 million, market capitalization of $6.14 billion and total value locked in stands at $5.30 billion.

CAKE Price Performance in 2021

CAKE opened on 1st January with a price of $0.6238 and tested $1 for the first time and settled at $1.98 on 31st January. PancakeSwap opened at $1.98 and took advantage of the spike in price in parent crypto Bitcoin to rally towards the end of February.

Climbing to as high as $21.41 on 19th February, CAKE corrected to $8.40 to end February. The novel token opened at $9.36 on 1st March 2021 and ended the month with a price of $18.04. CAKE reached an all-time high of $44.18 on 30th April. The digital asset has returned 6,982.4%.

Analyst Sahana Vibhute of CoinPedia forecasts CAKE to reach $60 if developers work on the platform and could reach as high as $80 by the end of 2021.

The analyst further predicts CAKE could trade for a coin at $280 by the end of 2026 and break into the top 30 cryptocurrencies in the world.

Such great volumes being recorded shows great investor interest in the asset. With more features to be added to the decentralized exchange, more users would employ CAKE to earn fees and other rewards. This would reflect positively in the overall valuation of the digital asset.

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9. Synthetix – Can SNX reach a 100?

Kain Warwick created Synthetix as Havven (HAV) in September 2017. As a decentralized finance protocol, Synthetix provides on-chain exposure to a wide variety of crypto as well as non-crypto assets. It allows its users to speculate on the price of real-world assets such as precious metals, currencies, stocks and crypto assets using ERC-20 tokens.

Synthetix has partnered with Chainlink to acquire real-world information of the price of assets which would help give decentralized price feeds.

Such successful partnerships has led Synthetix which trades under the ticker name SNX to command a price of $17.20, trade volume of $180 million and market capitalization of $1.96 billion.

SNX Price Performance in 2021

SNX opened at a price of $7.22 on 1st January and increased substantially to close the month at $17.28.

The digital asset had a price of $17.27 on 1st February and by the end of February exchanged hands for $18.68.

The crypto trading asset ended the 1st quarter of the year with a trading price of $17.66.

Synthetix (SNX) was able to resist news about a ban of cryptocurrency by Turkey in the month of April and traded for a coin at $18.23 to end the month. SNX has returned 298.476% year-to-date.

Experts at Trading Beasts forecast SNX to trade at an average price of $17.764 by the end of 2021. Experts at Trading Beasts predict Synthetix to close out 2022 with the price of $21.409.

With more partnerships such as the one with Chainlink in the near future, Experts believe SNX could be trading at averages prices of $25.373 and 29.242 by the end of 2023 and 2024.

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10. Terra Luna - Can Luna Reach $100 in the long term?

Founded in 2018 by Do Kwon and Daniel Shin, Terra is a blockchain protocol which uses fiat-pegged stablecoins to power price-stable global payments systems.

Terraform Labs is the company behind the continuous development of blockchain technology and cryptocurrency.

Terra has formed partnerships with mobile payment applications company Chai from South Korea. It is also supported by the Terra Alliance (it advocates for the adoption of Terra).

Trading under the ticker LUNA, it has a price of $16.59, has trade volume of $534 million and market capitalization of $6 billion in the last 24 hours.

Terra Luna has returned 3,320.13% year-to-date after opening at $0.6529 on 1st January 2021 and reaching an all-time high of $22.33 on 21st March.

Rayne Harris of Ripple Coin News has forecasted Terra Luna could reach $25.45 by the end of 2021. With more partnerships in the near future, the analyst estimates LUNA to trade for a coin at $40.486 to end 2022, $60 (2023-2024) and $80 by the end of 2025.

Based on such analysis by one of the credible analysts in terms of crypto finance, Terra Luna could be worth your money in terms of investment.

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So, Is Decentralized Finance a Good Investment?

Decentralized Finance is a good investment in 2021 and beyond. With an average return of at least 100% in less than 6 months, the DeFi market is bringing huge gains to investors.

When you consider blockchains which run smart contracts such as Ethereum and Tron, their prices are not solely determined by the forces of demand and supply. Neither is their price supported by just mere integrations on millions of merchants across the globe.

DeFi applications in the decentralized lending, exchange and yield aggregation categories have propelled especially Ethereum to new all-time highs. 

With more than $70 billion locked in DeFi already which does not even include future DAPPS by Cardano, decentralized finance could become the go-to source for all sorts of investments in the future.

The top 10 DeFi cryptocurrencies pointed out promises great returns in the future. It could make millionaires out of traders and investors depending on the amount of money they are willing to risk. 

With an eye on a prediction by Skerdian Meta that Ethereum could reach $25,000 by 2025, now could be the time for you to invest in DeFi and reap future rewards.

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Read More:

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How Much Money do I Need to Trade Cryptocurrencies? 

FAQs

How do you get passive income from DeFi?

You can get passive income by lending on Compound or Aave. You can also earn money through yield aggregation using Yearn Finance.

What is the difference between DeFi coins and Crypto coins?

Cryptocurrencies were originally created to serve as a digital currency for day-to-day transactions. DeFi coins on the other hand powers the networks of the blockchains which run smart contracts. Great examples are CAKE, UNI and CRV; they power their networks but are not accepted as transactional currencies.  

Is DeFi Safe?

The technology and mediums - such as decentralized currency - of a virtual marketplace afford investors a sense of security and trust in their transactions.

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