DeFi or Decentralized finance became the buzzword in 2020 and took the crypto world by storm. In 2021, DeFi assets have become of paramount importance. We are talking about all the decentralised exchanges, Money-lending services, and liquidity protocols that run on smart-contracts. We have done a rundown of the best DeFi assets that are revolutionizing every aspect of cryptocurrency.
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5 of the Best DeFi Assets 2021
1) Aave (AAVE)
Launched in January 2020, Aave is a money lending platform whose native token AAVE reached a whopping $1 billion market cap at the end of 2020. By market cap alone, Aave is currently leading the DeFi project ranking worldwide. The new AAVE token had previously replaced LEND tokens which were swapped for AAVE at a ratio of 1:100.
Interestingly, the AAVE token saw a massive growth in twin spikes of the DeFi market in August and November 2020. All together, Aave is one of the best DeFi assets worth holding in 2021.
With a surge in the popularity of governance tokens such as AAVE, Balance and Compound, Yearn.finance too saw a steep rise in adoption and popularity. It offers several services such as liquidity provision, money lending, and insurance on its platform.
Going forward, Yearn.finance is expected to marginally increase its market cap considerably from around $734 million recorded as of mid-December 2020.
The decentralised exchanges (DEX’s) market which saw a boom in 2020 witnessed many entrants and one of them was Uniswap that stormed its way amongst the best defi assets holding platforms.
So much so, Uniswap became perhaps the most popular DEX in 2020 thanks to its breakthrough viz. decentralised liquidity. No wonder, Uniswap reported a market cap that fluctuated around a staggering $850 million as of December 2020.
One of the most promising synthetic assets DeFi project platforms that rose to prominence in 2021 is Synthetix. Synthetic assets are derivative assets that are created via liquidity in different protocols.
Investors can use crypto synthetic assets and peg a particular protocol’s token to any underlying asset, thereby investing in multiple digital assets using a single token.
Backed by the launch of its own governance token COMP, Compound is among the first few money-lending protocols that rapidly rose to prominence in the DeFi realm. Compound’s reported market cap was around $660 million as of December 2020 per Messari.
Compound’s token helps crypto investors maximise their profits by harnessing the liquidity locked in the protocol by judiciously mining the YFI.
SEE ALSO: 7+ Best DeFi Lending Platforms in 2021