One of the emerging sectors in the blockchain space, Decentralised Finance (DeFi), is a blockchain-based protocol that exists to eradicate third parties like banks and financial institutions from all financial transactions.
This guide looks to provide users with a detailed view of the best DeFi coins available in the market. We will review the upcoming DeFi coins in the space and also recommend the best places from where to buy DeFi crypto in 2022.
The Top 5 DeFi Coins to Invest in 2022
DeFi has a total market cap of $50 billion, with over thousands of coins trading in the sector. To allow you to navigate through this vast space easily, we have found the top 5 best DeFi coins to buy in 2022.
You can view our best DeFi crypto token picks in the table below:
- DeFi Coin – Overall best DeFi coin to buy
- Lucky Block – New gaming crypto coin to watch
- Mana – DeFi project to invest in the metaverse
- Uniswap – Top DeFi project & liquidity provider
- Yearn Finance – Earn interest & take out loans using DeFi
A Closer Look at the Best DeFi Tokens to Buy in 2022
While picking the best DeFi projects, you should analyse the top DeFi crypto on the basis of long-term growth, market capitalisation, current coin price and available exchanges.
Considering these factors, here are some of the best DeFi crypto coins to buy in 2022.
1. DeFi Coin – Overall Best DeFi crypto token
One of the upcoming DeFi coins in 2022, we recommend DeFi Coin as the best overall token to purchase in 2022.
Operating on the Binance Smart Chain (BSC), DEFC is the native token to DeFi Swap exchange. After DeFi Swaps DEX (decentralised exchange) went live in early May 2022, the DEFC coin experienced an exponential price rise.
The DeFi Coin yielded a 5x return on 5th May 2022 – trading from $0.1 to a daily high of $0.5643.
According to the DeFi Coin’s whitepaper, the token will play a central role in helping DeFi Swap achieve its decentralised goals.
Used as an exchange currency for users on a wallet-to-wallet basis, DEFC tokens will be vital for the DeFi Swap exchange by providing multiple functions:
Static Rewards and Long-term Liquidity
Most of the time, early backers of new digital coins sell on rise and allow the price to crash instantly. However, DEFC avoids this by offering a “static rewards” plan.
- A crypto tax of 10% is levied whenever a user sells or exchanges the DeFi Coin, which promotes long-term investment.
- Notably, 50% of the tax received is distributed for the purpose of exchange liquidity to support P2P transactions.
- The remaining 50% of the tax is distributed across all DeFi Coin holders on a proportionate basis.
Token Burning to Reduce Supply
DeFi Coin creators have decided to implement a manual token burning strategy – choosing when and how many tokens to burn depending on prevailing market conditions. Thus, increasing the demand, and therefore the price, of DEFC in the long run.
The DeFi Swap ecosystem is also focusing on various upcoming projects, such as the DeFi Swap app, to implement more educational content, including technical analysis, webinars, etc.
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2. Lucky Block – Upcoming new DeFi coin to watch
Lucky Block is an exciting new DeFi project that promotes transparency and fairness in the gaming industry by leveraging decentralised technology.
Running on the Binance Smart Chain (BSC), Lucky Block’s online crypto prize draw system functions on smart contracts – making it accessible worldwide. At the centre of the Lucky Block ecosystem is LBLOCK – the native digital token.
Users need to hold the LBLOCK coin to purchase draw tickets and receive the jackpot rewards to access the online giveaway. Notably, users have also benefitted from the token’s exponential growth since it accumulated a pre-sale value of $5 million by January 2022.
Towards the end of January, LBLOCK was officially released on Pancake Swap – one of the industry’s biggest decentralised exchanges (DEX). After releasing at an ICO of $0.00089, LBLOCK soared to an all-time-high (ATH) of $0.009617. This equates to a 10x price increase.
Since January, the LBLOCK has corrected to a price of $0.001358. However, the correction could be favourable for investors looking to hold the token for a long period. Long-term holding of LBLOCK has its benefits, notably the possibility of regular dividend payouts for users.
With an impressive trading volume of just over $1 million, Lucky Block is among the top upcoming DeFi coins and an exciting new DeFi coin to watch in 2022.
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3. Decentraland – DeFi project to invest in the metaverse
Grayscale, a crypto-investment company, states that the metaverse has the potential to amass an annual market cap of $1 trillion. Thus, you should look at the best DeFi crypto and projects in this growing sector.
If you are looking to diversify your DeFi investments, you can look at Decentraland – a virtual reality platform powered by the Ethereum blockchain. The Decentraland platform allows users to purchase, hold and trade virtual real-estates using MANA – the native token of Decentraland.
MANA is an ERC-20 token that can be used to make various in-game purchases and provide liquidity to the ecosystem. Performance-wise, MANA was one of the best-performing metaverse tokens in late 2021.
In November 2021, the DeFi crypto token rewarded users with almost a 600% price increase. After reaching an ATH of $5.4, MANA is trading at just $1.16 a token. However, Decentraland’s token still has a market cap of $637 million and is the 40th most valuable digital token in the cryptocurrency space.
4. Uniswap – Top DeFi project and liquidity provider
When looking for the best DeFi coins to buy in 2022, Uniswap is one of the top projects that come to mind.
In its essence, Uniswap is a protocol that allows buyers and sellers to swap ERC 20 tokens without an exchange or an intermediary. Most centralised exchanges require buyers and sellers to provide liquidity to conduct P2P transactions, which can be challenging for even the biggest markets.
On the other hand, Uniswap does this process automatically. The protocol uses an algorithmic equation that automatically determines the swap rate based on both tokens’ balances and the swapping pair’s demand. This allows investors to swap tokens in a simple manner.
Uniswap’s native token, UNI, is the 26th largest coin with a market cap of $4.7 billion. While UNI has corrected from a price-high of $43 to only $7, it has the backing of a strong ecosystem that provides easy liquidity to facilitate Peer-to-Peer transactions in a completely decentralised manner.
5. Yearn Finance – Earn Interest & Take out Loans using DeFi
Yearn Finance is our next pick for the best DeFi coins to buy in 2022. This project focuses on leveraging decentralised finance to lend out Peer-to-Peer loans without having to go through any banks.
Yearn Finance offers these services through a multiple range of products & features.
- APY (Annual Percentage Yield) – To determine the interest rates across different lending protocols
- Earn – This feature identifies the highest interest rates users can earn by lending out different assets
- ZAP – A tool that bundles multiple trades, reducing costs & labour.
All these activities take place in the Yearn Finance ecosystem using YFI – the native digital token. Users can earn YFI tokens by locking their crypto holdings on the Yearn Finance blockchain.
This is a common practice known as “Yield Farming” – earning more cryptocurrency by locking up your existing assets in DeFi protocols.
The YFI token has a high price of $14,000 due to its limited supply of 36,368 tokens. With a market cap of $219 billion, YFI has the potential to reward users with more returns in the coming years.
While there are new DeFi coins launching all the time, we see DeFi Coin as the most promising coin to invest in 2022. Click the link below to buy DeFi Coin on Pancakeswap today!
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