With cryptocurrencies numbering in the tens of thousands and all of them fluctuating due to market or individual influences, it can be hard to find the best ones in which to invest. Decentralized Finance (DeFi) coins and tokens are built on the blockchain – typically Ethereum, but not always – and are immensely popular.
Decentralized finance (DeFi) coins are the first link between the new world of cryptocurrencies and the traditional financial system. DeFi coins provide traditional financial services to users, such as loans, lending, and insurance.
Because not all coins include these financial possibilities in their portfolio, DeFi coins are especially valued as an important component of any diversified investment strategy.
Keeping up with the best Defi Coin is difficult in today’s fast-paced blockchain environment. This is why we did the preliminary research for you and discovered exciting DeFi crypto projects that have the potential to 10x by 2023.
Here are nine of the best to DeFi coins to buy now in October 2022.
Best DeFi Coin Projects Examined
Before we get into the specifics of each of these cryptocurrencies set to explode in 2022, here is a short synopsis of the entire list of the best cryptos set to explode in the DeFi sector.
1) BudBlockz – Overall Best Defi Token
2) PancakeSwap – Top Decentralized Exchange with popular token
3) DAI – DeFi Coin with largest market cap
4) Tezos – Ethereum competitor with advanced infrastructure
5) Maker – DAO Behind Popular Stablecoin
6) Cosmos – Highly rateddefi coin offering blockchain interoperability
7) Compound – Popular Lending an Borrowing Platform
8) UniSwap – Leading DEX with powerful DeFi Coin
9) Avalanche – Popular Layer-1 Blockchain
Although this list is in no particular order, it makes sense to start with what is arguably the best DeFi token overall. BLUNT is the native token of the BudBlockz ecosystem, a community and marketplace that promotes and supports the rapidly growing cannabis sector.
BudBlockz and its token genuinely feel like a platform whose time has come. BLUNT allows holders to buy, sell, and trade marijuana products on a secure and private e-commerce marketplace accessible worldwide. The token also acts as governance, with holders able to vote and steer the direction of the ecosystem.
The platform has a lively community of cannabis enthusiasts who benefit from discounts and purchase options. But what has caught the eye of investors are the other benefits BudBlockz brings. For example, BLUNT holders can obtain percentage ownership of marijuana businesses, such as farms and dispensaries, meaning they profit when the sector grows.
As the cannabis industry is predicted to be worth USD$176.5 billion within a decade, it is a sector in which many want to get involved but may not be able to access due to local laws. The anonymous nature of BudBlockz’s decentralized platform changes that. With US President Biden granting pardons for marijuana possession – in what many see as a precursor to further decriminalization – this is a hot industry right now.
The BLUNT token allows investors to purchase one of the most in-demand DeFi coins around while also gaining exposure to the rapidly expanding cannabis industry. The combination of crypto and weed is proving popular.
BudBlockz is still a new platform, but the recent private sale saw BLUNT selling out. It is now in pre-sale, and prices have already risen from $0.015 to $0.0268. It is one of the best DeFi tokens you can buy right now.
Step 1: Click the button below
Step 2: Create a Budblockz account. Ensuring you use a valid email address.
Step 3: From your client dashboard, click the “buy $BLUNT” button
Step 4: Set the amount you want to purchase and the cryptocurrency you want to pay with
Step 5: Make the payment to the provided wallet address (within 24 hours)
Step 6: Your tokens will be added to your BudBlockz account
Step 7: Add your wallet address to the dashboard
Step 8: You tokens will be airdropped to your chosen wallet on launch
PancakeSwap is a Decentralized Exchange (DEX) based on the Binance Smart Chain, similar to other well-established platforms like UniSwap or SushiSwap. It is one of the crypto industry’s most popular swapping exchanges for BEP-20 tokens.
PancakeSwap uses an Automated Market Maker (AMM) system meaning there is no order book or matching system. Instead, investors use liquidity pools to trade by depositing their coin into the pool and withdrawing the one they want.
The native CAKE token has a high level of utility, helping drive value. For example, liquidity providers earn LP tokens, which they can farm to earn CAKE. It is then possible to compound earnings by staking CAKE tokens on the platform’s Syrup pools.
Investors benefit from highly competitive farming yields compared to other platforms, with APR calculated by liquidity or the amount of CAKE tokens distributed in the PancakeSwap farm.
Another chance to earn CAKE tokens comes via the platform’s lottery. Holders also have the right to vote on various governance proposals. The CAKE token can also be easily swapped for others on the platform if desired.
PancakeSwap and its CAKE token are incredibly popular and one of the top decentralized exchanges in the crypto sector. Being built on the Binance Smart Chain means transactions are secure, fast, and cheap.
Looking ahead, there are likely to be a lot more use cases for the token, and with the advent of the metaverse, cryptos, DEX, and DeFI tokens are likely to gain value.
DAI is a stablecoin built on the Ethereum blockchain. It is pegged to USD and tries to maintain a value of $1 through smart contracts in the form of a decentralized application. The appeal of stablecoins is their lack of volatility.
The coin is maintained and regulated by MakerDAO, which was formed in 2014. Both are considered one of the earliest examples of a popular DeFi option. MKR token holders make up a community that governs the Maker Protocol – the smart contracts that power DAI.
The way it works is users deposit cryptocurrencies, such as Ether, as collateral for a loan. They then generate the equivalent USD amount in Dai, which can then be used as a regular cryptocurrency. As Dai is a stablecoin, the repayment amount is always what was borrowed, plus interest.
Dai is essentially digital cash and comes with several advantages. For example, holders have the option to lock their Dai in a special smart contract and earn the Dai Savings Rate. This involves no fees or geographic restrictions. In addition, as the Maker Protocol is on the blockchain, it allows for peer-to-peer transfers, resulting in faster and cheaper cross-border transactions.
What primarily differentiates Dai from traditional fiat currencies is that it is unbiased and available to everyone, even those blocked by the banking system. Another example of its usefulness would be people in countries facing a banking crisis where withdrawals are limited.
Being a stablecoin pegged to USD and bypassing the traditional financial system has made Dai incredibly popular and resulted in it having the largest market cap of any DeFi token. It isn’t going anywhere and is an excellent addition to a portfolio.
Tezos is an open-source blockchain network that uses smart contracts to facilitate peer-to-peer transactions, participate in DeFi, and create decentralized applications and NFT projects. It is fueled by its native XTZ token, also known as a Tez.
The network uses liquid proof-of-stake to achieve consensus. Unlike many other blockchains, Tezos uses an on-chain governance model that enables amendments to the protocol based on voting from its community. This reduces the chance of a blockchain fork.
By staking 8000 Tez, owners can operate a network node and earn a share of rewards in a process known as ‘baking’. Alternatively, they can delegate their XTZ to other bakers to win newly minted Tez from the protocol.
The XTZ token derives its value from its role in operating the network and lets owners hold, send, or bake. By holding and baking Tez, people can vote on network upgrades in proportion to the amount of XTZ they bake. Those who participate in baking are rewarded with XTZ tokens, and owners also receive a percentage of the reward they delegate to others.
The Tezos blockchain is often seen as an alternative to more energy-intensive networks like Ethereum. Its advanced infrastructure and operation differ from others offering similar services, and its XTZ tokens are highly sought after.
MakerDAO is sometimes known as ‘the central bank of crypto’ and is best known for the DAI stablecoin, as discussed earlier. However, it is part of a larger system called the Maker Protocol, which requires two types of tokens to work – the previously mentioned DAI and the Maker (MKR) token.
Users who deposit a cryptocurrency like ETH in the network generate DAI, which can then be used like standard crypto. So, it essentially acts like a service that users can access. In contrast, the MKR token is MakerDAO’s governance token that allows holders to vote on protocol updates.
While DAI might gain more headlines, the MKR token is also highly valuable and has a capitalization of over $1 billion. MakerDAO’s success primarily results from its decentralized governance, giving Maker value.
For example, in March 2020, when DAI almost collapsed, it was saved by those with a lot of Maker tokens who voted to back DAI with USDC – a centralized stablecoin. While anyone can make proposals to MakerDAO, only MKR token holders can actually vote.
Maker holders are also the ones who decide how much DAI holders earn by setting the DAI Savings Rate (DSR). Historically, the DSR has fluctuated from 0% to 8.75% per annum, depending on what MKR holders choose is best for DAI and the platform’s users. When DAI goes above $1, for example, they will vote to lower the DSR to decrease demand. In addition, Maker holders decide which currencies or assets can be used to generate DAI.
MakerDAO and the Maker Protocol are highly respected and successful. While DAI is better known, the Maker token is also valuable and holds appeal for those who want a say on the future of the platform.
The Cosmos network is sometimes described as the ‘internet of blockchain’ and aims to build an ecosystem of data-sharing crypto networks. The Cosmos Hub is a proof-of-stake blockchain powered by its native token, ATOM.
The Cosmos Hub and Cosmos Software Development Kit (SDK) are powered using Tendermint BFT, a proof-of-stake consensus protocol. Tendermint allows developers to build new blockchains without having to code from scratch. In addition, it acts as a governance mechanism that keeps the Cosmos Hub network in sync.
The ATOM token secures the Cosmos Hub’s interchain services and maintains interoperability between the different zones on the network. It can also be used for holding, spending, and staking. A staking token can be ‘bonded’ to earn rewards, and this improves Hub security. Owning and staking ATOM also allows for governance and the right to vote on network upgrades.
Cosmos and the value of its ATOM token will rise in demand as more blockchains are added and built within the network and consequently rely on the Cosmos Hub to maintain transaction histories. They also benefit when other projects move to the network – as seen earlier this year when the Terra ecosystem crashed, and many cryptos moved to Cosmos instead.
Other advantages driving demand for the network are that Cosmos SDK aims to be free, allowing developers to build sovereign blockchain apps with no extra costs. It is also scalable, and as Cosmos blockchains use PoS consensus algorithms, they are more sustainable than other options.
The Compound platform is a decentralized blockchain protocol that lets users lend and borrow crypto. COMP is its Ethereum-based token that acts as governance, giving holders the chance to make proposals and govern the Compound protocol.
The Compound platform facilitates the borrowing and lending of a specific set of cryptocurrencies. Users can deposit one of the selected cryptos to the protocol, and this can then earn interest and be loaned to others on the platform.
One significant advantage is, like other decentralized platforms, accessibility regardless of location or credit rating. Once a cryptocurrency is locked in Compound, the user can then borrow based on the value of the asset and the set borrowing limit, which will be a percentage of the deposit.
To lend or borrow, users must first lock their crypto with Compound, and in return, they receive Compound tokens, known as cTokens. These are made on the Ethereum blockchain and are ERC-20 compatible. This means they can be used in the Ethereum ecosystem and can, for example, be traded or used in dApps.
The interest rate, whether borrowing and paying interest or lending and earning, varies in response to demand and the size of the liquidity pool.
As borrowers and lenders will have locked cryptocurrency on the protocol, they are rewarded with COMP tokens. COMP holders then have the right to vote on proposals and govern the platform and its direction. They can also delegate their voting rights to others.
The Compound Protocol and its COMP token are well-established and trusted, making it a safer investment than many others in the sector.
As the largest decentralized exchange (DEX) on the Ethereum blockchain, UniSwap is incredibly well-known and one of the most popular with users and investors. Launched in 2018, it was one of the first DeFi applications to gain noticeable traction on Ethereum. UNI is its governance token and allows holders to vote on key protocol changes.
Most crypto is traded on centralized exchanges, and the primary problem is liquidity. UniSwap gets around this by using an automated liquidity protocol. Users are rewarded for pooling their money together to provide liquidity for the platform, with each token having its own pool.
Algorithms set market prices based on supply and demand using a variant of the Automated Market Maker model (AMM). Uniswap was the first decentralized platform to successfully use the AMM model, which uses smart contracts to hold liquidity reserves (or pools) that traders trade against.
As it is decentralized, the UniSwap platform doesn’t make any money. Instead, the transaction fees automatically go to the liquidity pool and can be redeemed by liquidity providers whenever they want.
Like many others on this list, UniSwap’s native token UNI acts as governance, giving holders a vote on proposals. However, only those who hold at least 1% of all UNI supply can also submit proposals.
Interestingly, when UNI was first introduced in 2020, it wasn’t through an ICO or token sale. Instead, anyone who had used the platform was given 400 UNI tokens (worth over $1000 at the time). Now, UNI is earned by staking tokens in UniSwap’s liquidity pools.
As the largest DEX on the Ethereum blockchain and one of the most used crypto exchanges, the UNI token gains value depending on the popularity of UniSwap. Due to the platform’s design, liquidity pools, and processes, it can provide access to newer and less liquid cryptos that might not be available on other, more traditional exchanges. As such, demand will likely grow in line with the increasing amount of new coin and token launches.
Avalanche is a blockchain platform like Ethereum that supports smart contracts and provides tools for users to run decentralized applications (dApps) on its network.
The platform uses a Proof-of-Stake (PoS) mechanism, with smart contracts written in the Solidity language, which Ethereum also uses. This improves interoperability and means Ethereum developers can launch dApps on the Avalanche platform.
The platform’s structure is complex but has proved to work incredibly well. What makes it different is its design, which includes its consensus mechanism, subnetworks, and three built-in blockchains – the Exchange Chain (X-Chain), Contract Chain (C-Chain), and Platform Chain (P-Chain). It’s complicated.
The main aspect that sets the platform apart is Avalanche consensus, a variation of the PoS protocol that enables scaling. This makes it blisteringly fast, and it’s allegedly the first smart contract platform that can finalize a transaction in under a second.
AVAX is the native token of the Avalanche platform. It not only acts as governance but is also used to distribute rewards and power transactions within the ecosystem. Avalanche’s appeal comes from its various advantages, such as its technical capacity, interoperability, use cases, and relevance. As a result, the platform and its token are likely to keep growing in value.
How we ranked our top 9 DeFi coins:
Use cases – innovative use cases such as that displayed by BudBlockz certainly play a part in the overall ranking of out top 9 defi coins to buy.
DeFi application – The applications showed by projects such as Compound and Maker are important to the growth and future of decentralized finance
Growth Potential – With the exception od DAI which afterall is a stablecoin none of they cryptos featured in this list are in the top 15 crypto assets by market cap and with DAI currently placed at #13 all are outside of the top 10 biggest cryptocurrebncies.
BudBlockz is still in its presale and has already seen more than 75% growth since the start of September.
Past Performance – PancakeSwap and UniSwap are examples of cryptocurrencies with strong past performance that has been sustained for multiple years even throughout the toughest market conditions.
Low Cost – A nice proportion of the tokens on this list are available under $20 making them a lot more affordable than household stocks such as Amazon, Apple and Microsoft.
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