DeFi was all the rage back in the summer of '20. I remember it like it was yesterday. The crypto internet ATM was back. All you had to do was throw one ETH in and get two back. But this wasn't the good ol' ETH giveaway scam. This was just how easy trading was during this time. But many people believe that DeFi had its 15 minutes of fame, and it's time to find a new niche to base our investments on. Today, I'm going to gaze deeply into my crystal ball and give you my Top 5 DeFi coins of 2021.
Disclaimer: I am not your financial adviser and all information available below is for purely educational purposes. Please verify all of the Information before using it and don't make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up.
Here are the five coins I believe are your best bet to make massive gains in DeFi in 2021
5. Aave
Coming in at No. 5, I have Aave. Formerly ETHLend. Aave has found its way to the upper echelon of DeFi projects with staying power. Now, I could have easily chosen Compound or Maker, even Yearn Finance here, and I consider all of them, but, in the end, I think that Compound already had its miracle run when it sat atop DeFi for weeks, unseating Maker as the top DeFi project back before every project was considered DeFi, or at least before every project changed their direction so they could be with the cool kids in DeFi. And Maker, well, let's just say it's seen better times.
And I don't think it has dropped because it got exhausted at the top. I think that it legitimately has some issues. We saw this during the crash in March. And Yearn Finance, well, there's no way it can continue crushing it this much, am I right? I think Aave is the most complete token out of all the heavy hitters that were birthed in DeFi and have stayed in DeFi. Aave is known as the liquidity protocol and has almost $2 billion locked up on it right now. Aave allows users to provide liquidity for other coins and offer them the best returns on it.
This liquidity is for what they call Flash Loans. These are uncollateralized loans for people to be able to borrow instantly, instead of having to go through the process of collateralizing because ain't nobody got time for that! It takes a few clicks. The latest news though is that Aave just got a huge upgrade that will save users gas fees, and, even more importantly, the version 2 upgrade will make even risky investors trade safer, making transactions smoother in trying to stabilize borrowing rates. It just feels like now that it has gone through its token swap and launched version 2 that it is ready to bust out. And it's already near the top of DeFi. Look for Aave to explode in 2021.
4. ZRX
This protocol allows users and exchanges to trade and swap ERC-20 tokens. I mean, it's basically old news. Now, you can do that almost anywhere! But you may not know that the ZRX protocol powers BitSwapand some of the other exchanges that you frequent, you Degens.
The idea behind 0x was good and the team executed it. They're way ahead of the times in 2017 and 2018when nobody even knew why anyone would want to trade Ethereum tokens. I was super bullish on it in 2018 because I could see the future, obviously, but they were a little too far ahead of their time. ZRX floundered for a long time but now looks to be right back in the fight, scratching and clawing for DeFi dominance in 2021.
And you may not have known this, but ZRX set a record in volume this quarter.Just as we talked about earlier, crypto happens in cycles, and the excitement is building again around ZRX.I think it's gonna break out.
3. Synthetix
According to Token Metrics, this is the No. 1 overall coin for the next year for value investors. And it's not even close. This is the only coin I've ever seen on Token Metrics with a score this high. And we are trusting the AI and machine learning on this one.
Synthetix, for a long time, is a very underrated coin in the DeFi game. Every time I thought it was going to explode, something seemed to happen in the larger context of DeFi that made it stall out. I felt like it was right on the verge of an explosion before DeFi went down. If you want to dig deep into why Token Metrics is giving it this high of a score though.
2. Cardano
Coming in at No. 2, and this is going to surprise a lot of people, Cardano Whaaaat? Cardano? DeFi?Well, technically it isn't DeFi.But here's the thing. They will be. While Cardano is set to explode in this bull run, a lot of doors and possibilities are going to open up for the ADA ecosystem.
This is one of my top overall coins for this bull run. But I'm particularly interested to see how Cardano's foray in DeFi will go because after Goguen is fully up and running, it will be an easy transition for Cardano to get big into the decentralized finance game. And why wouldn't they?
It seems to me like Cardano was keeping its cards close to the vest on this one on purpose. I've heard whispers and little birdies saying, "Do not sleep on Cardano."When ADA comes to play, it comes ready. And I believe the team has been working connections, partnerships, and alliances specifically to make a big splash in DeFiwhen no one is watching.
1. Chainlink
Coming in at No. 1, I have Chainlink. Come on. It's an easy pick. Chainlink is set to explode to reach $900 in this bull run. I gave you guys a scenario several months ago where it was fathomable, but barely, that LINK could reach $2,000 per LINK token.
Chainlink's decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain. Chainlink greatly expands the capability of smart contracts by enabling access to real-world data, events, payments, and more without sacrificing the security and reliability guarantees inherent to blockchain technology.
There you have it, my Top 5 DeFi coins of 2021. Which ones did I get right and which ones did I get wrong? Make sure to drop those comments down below. That's all I got.
I hope this article is helpful to u, I would like to hear your thoughts on this. If u have any doubt about investing or if u want my thoughts about a particular project pls comment down below.
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