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Blog|Defi|Best DeFi Coins to Invest In 2022
Published April 22, 2022|14 min read

Best DeFi Coins to Invest In 2022

Decentralized finance is the most innovative financial service based on blockchain and working with no intermediaries. Nowadays, experts estimate the total value of the DeFi cryptocurrency market at over $115 billion. And this figure is growing daily. Keep reading the article to know everything about the best DeFi coins to invest in.

How Are the Best DeFi Coins Determined?

The most promising coins can be determined according to their current progress, perspective, stability, and popularity. More than 400 types of DeFi coins presently exist. Many of them appear and vanish in a single day. Overall, DeFi coins are not the most reliable asset to invest in. Only founders and early investors benefit from DeFi tokens. Over 90% of DeFi tokens are scams. Therefore, this market is quite unstable. To determine the best DeFi coins, the following important aspects must be taken into account.

Idea and Perspective

Though there is plenty of fraudulent activity on the market of DeFi coins, it is considered a good investment if one selects the right tokens. Therefore, the idea of choosing the best DeFi crypto to invest in 2022, such as UNI, AVAX, or LUNA, undoubtedly promises a promising outlook for long-term investments.

Progress

The value of the significant DeFi blockchains has been demonstrating an incremental rise. According to CoinGecko statistics, the average daily growth of DeFi coins ranges from 12.27% to 16.38%. Even though the market progresses constantly, investors should clearly understand the market capitalization of a chosen DeFi token to consider it for investment in the immediate future. To sum up, the progress of DeFi coins is often not what it looks like.

Stability

DeFi coins are quite hard to call a stable investment. So, to determine the best DeFi coins for pouring cash over a long-term horizon, the stability of tokens ought to be researched. A serious-minded investor should take the time to explore whether a selected coin shows stable growth. If there is even a minimal increase in the value over the last three months, the chosen DeFi token should be bought without a considerable fall in-between. It is also recommended to start investing in small amounts.

Popularity

The coin's popularity should also be considered while determining the best tokens operating on DeFi markets. Although some coins may seem too popular compared to their rivals, a thoughtful investor should always manage all possible risks and avoid swinging between extremes.

Where to Find Good DeFi Projects for Investments

Reliable projects for investments can be found on popular DeFi protocols like Uniswap, Aave, Loopring, or Cardano. The question of finding appropriate DeFi projects for money-making investments in 2022 bothers thousands of cryptocurrency investors. World markets are quite unstable. That is why depositors wish to know how and where to find the best DeFi investment spheres.

Top 10 DeFi Coins to Invest In 2022

There are over four hundred DeFi coins available for investment in 2022. However, depositors wish to pour their money into the most reliable ones, as the value of coins changes unexpectedly. DEXs allow consumers to control their cryptocurrency assets to the full extent. Everyone can freely interact with the best DeFi coins on a peer-to-peer level.

Additionally, cryptocurrency experts list many reasons to select the passive HODL investment strategy. In particular, it will work if an investor desires to protect and enlarge their assets in the simplest way. Our experts have carefully scanned the discussed issue and narrowed the choice to the top 10 coins on the DeFi market for profitable investment in 2022. In addition, they provide consumers with safety protocols and liquidity pool platforms.

Avalanche

Avalanche positions itself as the speediest protocol based on a smart contracts platform on the blockchain market. It provides one of the cheapest financial transactions conducted almost instantly. Avalanche is the leader in the crypto market regarding transaction speed. It processes more than 6,400 transactions per second, while Ethereum can provide only 15 transactions per second. The blockchain was released in September 2020. In the same year, it launched the native token titled AVAX.

  • Year of establishment: 2020
  • Head office: the United States
  • Founders: Kevin Sekniqi, Emin Gün Sirer
  • Source model: Open-source
  • DeFi coin: AVAX
  • Current market capitalization: Over $16.25 billion
  • Products: DeFi transactions
  • Terra

    The Terra protocol uses smart contracts to combine the concept of stable coins with DeFi. This blockchain platform leverages the open-source model. Do Kwon and D. Shin established the Terra project at the beginning of 2018 with the main focus on improving the usability and stability of the price model.

    LUNA is the original token of Terra. Terra supports stable coins. They provide the lowest transaction fees, faultless exchange, and instant settlements. The current LUNA price is over $66. The highest price of almost $91 was reached in December 2021.

    Investors praise Terra as the best DeFi crypto asset to invest in 2022 for the possibility of staking digital cash reasonably. Consumers fully control the Terra protocol and participate in its governance. The Terra ecosystem has been growing rapidly. As of January 2022, it deals with more than 100 crypto projects across NFTs and DeFi.

  • Year of establishment: 2018
  • Head office: Eschborn, Germany
  • Founders: Daniel Shin, Nicholas Platias, Do Kwon
  • Model: Open-source
  • DeFi coin: LUNA
  • Current market capitalization: More than $26.63 billion
  • Products: DeFi transactions
  • Uniswap

    Uniswap is one of the most innovative decentralized exchanges in the top DeFi crypto markets. It lets consumers purchase cryptos and provide liquidity straight from their crypto wallets.

    At the end of September 2020, Uniswap launched its token under the name of UNI. Now, it is a major means of reward for users on this platform. The Uniswap coin started to be traded on the market at the price of about $2.83. In several months, its cost jumped to over $40. The current market value of this DeFi coin is over $10.

    It uses Automated Market Maker's special system to guarantee adequate liquidity for the best DeFi ERC20 tokens to invest in that are regularly traded on its website. Furthermore, the Uniswap exclusive protocol allows a depositor to get total control over their private keys. In addition, Uniswap is integrated with external wallets and permits selling and buying DeFi coins at the lowest fees.

  • Year of establishment: 2018
  • Head office: New-York
  • Founder: Hayden Adams
  • Model: Open-source
  • DeFi coin: UNI
  • Current market capitalization: More than $4.84 billion
  • Products: DeFi liquidity platform
  • Aave

    Aave was originally launched in 2017. Currently, it is one of the oldest and the most reputable platforms for trading various types of DeFi coins. Aave offers a trustworthy marketplace where consumers can easily borrow or lend digital currencies. In addition, Aave allows depositors to supply the market with liquidity and, therefore, get recurring revenue. Meanwhile, borrowers can borrow funds with the smallest fees.

    AAVE is the native token of this protocol. It should be noted that using this protocol implies certain charges. Consumers should pay fees for using the Ethereum blockchain. The current market capitalization of Aave reaches almost $2,068 billion. Today, the AAVE price is $152.

  • Year of establishment: 2017
  • Head office: London
  • Founder: Stani Kulechov
  • Model: Open-source
  • DeFi coin: AAVE
  • Current market capitalization: More than $2.067 billion
  • Products: DeFi lending and borrowing platform
  • Polkadot

    Gavin Wood, the co-founder of Ethereum, created Polkadot at the end of 2019. Two other founders specializing in cryptography and distributed systems joined him a year later. They are blockchain developer R. Habermeier and data analytic P. Czaban. In 2020, Polkadot launched its original token titled DOT.

    As a reliable protocol, Polkadot permits transferring a wide range of blockchain messages using multi-chain technology. The protocol offers a reliable blockchain for making fast transactions and exchanging info quickly. Web3 Foundations, a Swiss-based corporation, owns Polkadot. Its main aim is to develop an entirely friendly and functional decentralized Web.

  • Year of establishment: 2019
  • Head offices: Zurich, Paris, New York
  • Founder: Gavin Wood
  • Model: Open-source
  • DeFi coin: DOT
  • Current market capitalization: More than $18.61 billion
  • Products: DeFi transaction platform
  • Cardano

    Cardano supplies the crypto market with its DeFi coin titled ADA. Charles Hoskinson, one of the Ethereum founders, launched this public blockchain in 2015. As one of the top coins traded in the DeFi system, Cardano can fasten P2P financial transactions using ADA.

    Cardano positions itself as the most environmentally friendly platform based on blockchain. For instance, Samsung announced to plant more than 2.1 million trees on the territory of Madagascar using Veritree. It operates on the Cardano blockchain to confirm planted the trees.

    Currently, it is one of the ten biggest blockchain projects globally. Investors primarily use Cardano to deal with blockchain education projects, NFTs marketplaces, and DeFi investments. The current market price of Cardano is almost $1.2.

  • Year of establishment: 2015
  • Head office: Zug, Switzerland
  • Founder: Charles Hoskinson
  • Operation system: Cross-platform
  • DeFi coin: ADA
  • Current market capitalization: More than $35.31 billion
  • Products: DeFi liquidity platform
  • DAI

    DAI is one of the best DeFi coins based on the ETH blockchain. It is considered the first DeFi example to be widely adopted. DAI’s value is connected to the US dollar, meaning that a DAI equals one dollar. MakerDAO’s protocol, a prominent open-source piece of software, generates DAI. At the end of 2017, DAI and all smart contracts linked to it were legitimately launched on the ETH network. DAI uses the system of smart contracts to build decentralized apps.

    The present capitalization of DAI has already reached $9.2 billion, and it has become one of the best options among new DeFi coins circulating on the market. Thousands of consumers use DAI because it is an ideal option for reducing the costs of transactions while trading on the DeFi markets. DAI is also utilized for lending purposes and for dealing with crypto insurances.

  • Year of establishment: 2017
  • Head office: Santa Cruz, California
  • Founder: Maker Foundation
  • Source model: Maker DAO Protocol
  • DeFi coin: DAI
  • Current market capitalization: Over $9.22 billion
  • Products: DeFi liquidity platform
  • Wrapped Bitcoin

    Wrapped Bitcoin is an imperative tool for those who want to invest in the best DeFi crypto in 2022. It is a tokenized version of BTC that is held in reserve. As there is no cryptocurrency bridge connecting the Bitcoin and Ethereum networks, this technology is aimed to relocate BTC to the Ethereum blockchain. Tokenized BTC helps solve this problem and provides much-needed liquidity for all DeFi protocols.

    It means that WBTC should be used on the ETH platforms so that Bitcoin could interact with the ETH ecosystems. WBTC is mostly utilized in decentralized finance, and it is going to become its vital part shortly.

    The value of an ERC-20 token is the same as another asset it may represent. Therefore, a WBTC is a token worth one Bitcoin.

  • Year of establishment: 2018
  • Founders: Kyber Network, BitGo, and Ren
  • DeFi coin: WBTC
  • Current market capitalization: Over $842 million
  • Products: Trading assets on DeFi
  • Loopring

    Loopring is another trendy DeFi coin that is highly recommended for investing. This Ethereum blockchain protocol operates on the open-source model. Its native token is titled LRC. Loopring allows verifying financial transactions without the need to access personal data.

    Consumers mostly use Loopring to finalize trades between buyers and sellers on DeFi markets. This blockchain offers reduced transaction fees and increased speed of financial operations. Loopring technology allows performing over two thousand trading operations per second.

    Investors are offered to stake this top DeFi token to get revenue of almost 70 percent of the LRC platform fees. However, note that the coins must be staked for a minimum of ninety business days. The current market cap of Loopring reaches almost $1.3 billion. The current market price of LRC amounts to $1.

  • Year of establishment: 2017
  • Head office: Shanghai, China
  • Founders: Jay Zhou, Daniel Wang
  • Consensus mechanism: Proof-of-work system
  • DeFi coin: LRC
  • Current market capitalization: More than $1.26 billion
  • Products: DeFi liquidity platform
  • SushiSwap

    As an Ethereum-based protocol, SushiSwap has its original DeFi coin titled SUSHI. It was initially founded on the basis of another popular platform, Uniswap. Its users are welcome to participate in the shared governance of the platform. Investors can stake DeFi coins and get a part of SushiSwap’s transaction fees.

    As one of the most popular DeFi coins, SUSHI can be transferred to other consumers and traded on major cryptocurrency platforms, such as Binance and FTX. SushiSwap is mostly used for trading the best sorts of DeFi cryptocurrency assets globally. As of 2022, the SUSHI token has turned into a profitable option for investors to provide DeFi coin liquidity. The current market price of SUSHI reaches almost $4.32.

    At the end of 2021, Andre Cronje, the creator of Yearn Protocol, stated that SushiSwap could be united with Yearn. In this way, it is planned to create a brand-new platform under the title DeriSwap. It is projected to deal with loans.

  • Year of establishment: August 2020
  • Head office: Japan
  • Founder: Chef Nomi
  • Model: Open-source
  • DeFi coin: SUSHI
  • Current market capitalization: Over $842 million
  • Products: DeFi liquidity platform
  • How Does Market Capitalization Help to Choose Coins for Investment?

    Main indicators of market capitalization, such as current price, stock price, TVL ratio, and fully diluted market capitalization help to select the most popular DeFi coins for a profitable investment.

    The price of a DeFi coin is one way to determine its value. On the other hand, it is the market cap that tells possible depositors the full story of the chosen coin. Consequently, the market capitalization of DeFi coins helps understand whether a coin value is going to grow. Therefore, investors can decide if to purchase certain coins or not.

    There are three categories of DeFi coins according to their market capitalization. These are:

  • Small-cap coins. They have a capitalization of up to $1 billion. As a result, this category of crypto assets is the most vulnerable to dramatic swings fueled by overall market instability.
  • Mid-cap coins. Their capitalization ranges from $1 billion up to $10 billion. This category is thought to have more potential for investments, though the risk is also high.
  • Large-cap coins. The market capitalization starts from $10 billion. These are the most promising coins with the minimum risk for investment because they have already shown stable growth.
  • Top DeFi Crypto by Capitalization

    DeFi crypto coins are shuffled daily. The DeFi coin's value changes every minute depending on the market and the country. Consequently, the current list of the top DeFi coins by capitalization looks like the following:

    What Is a DeFi Coin?

    The DeFi coin concept is built on distributed networks and does not require centralized intermediaries. A DeFi coin is similar to a fiat coin because it directly transfers its value during a financial transaction. The coins are often named after their blockchain networks. Therefore, as of January 2022, the most popular DeFi coins are Aave, Uniswap, Compound, DAI, and Polkadot. Currently, the market cap of best DeFi coins is $114.38 billion.

    How Are They Interesting to Investors?

    Investors are interested in DeFi coins because they can bring quick income. But, depositors are clever people; they always manage all possible risks before transferring money for investment. Since 2021, DeFi coins have turned into an attractive investment type for cryptocurrency owners worldwide.

    Overall, investors are interested in trading DeFi coins. They are engaged in lending, borrowing, saving, and providing insurance quickly and safely. Thus, such growing popularity makes DeFi coins a perfect option for investing in various segments that accept cryptocurrencies.

    Is Best DeFi Tokens Good for Investment?

    DeFi coins are projected to be an advantageous type of investment even though the answer to this question has been bothering investors for two years already. If one knew it for sure, he/she would have become a millionaire long ago. Even experienced analytics of the cryptocurrency market often feel uncertain about which DeFi tokens to select for the most profitable investment.

    The boom in the cryptocurrency market continues. Dozens of new DeFi coins appear daily, but 90% of them may cease to exist in the next few days. All because most of the created tokens do not have enough liquidity and are designed to collect money from investors and disappear for good quickly.

    Yet, DeFi tokens are very good for investments. Let us list the top advantages:

  • understandable investment tools;
  • full control over your own funds and data;
  • decentralization owing to the system of smart contracts;
  • the constant growth of DeFi market capitalization;
  • transparency of investments provided by DeFi protocols running on the blockchain;
  • plenty of opportunities to invest in overcrowded segments that may not be available in traditional finance.
  • To sum up, it is wise to invest in the best DeFi tokens in 2022. However, investors should remember that they need to have plenty of tools at hand to operate effectively in the decentralized finance market. This article has described the trendiest DeFi coins, which can help an investor control assets and make the right decisions timely to increase income.

    Conclusion

    To crown it all, it is evident that top DeFi coins are perfect for making profitable investments now and in the future. However, it is also necessary to know how the best coins are determined and which coins are the best to invest in. This info will help reasonably decide where and how to invest in DeFi. Consequently, it is recommended to buy DeFi coins from the top ten list mentioned in this article without brokers and make investments in almost 20 DeFi segments.

    Frequently Asked Questions

    What Are the Best DeFi Coins?

    The best DeFi coins nowadays are Cardano, Aave, Uniswap, DAI, Terra, Avalanche, Loopring, Polkadot, Sushiswap, and Wrapped Bitcoin. Each of them has a target market and its audience for investment.

    Is Best DeFi Tokens Good for Investment?

    The best DeFi crypto tokens to invest in 2022 are worthwhile pouring money into. DeFi tokens keep on showing steady growth in all financial markets, which gives every investor a perfect chance to pocket good cash if tokens are selected properly.

    How to Find Top DeFi Coins?

    Since DeFi coins have been showing rapid growth daily, one should read our article on this issue and continually study exchange reports and charts of cryptocurrency trading.