DeFi, or Decentralized Finance, has emerged to transform banks, exchanges, and the traditional financial system through the use of cryptocurrencies. In this article, we will look at some DeFi projects and tokens and try to decide which DeFi crypto projects can be considered for investment purposes.
Best DeFi Crypto Projects to Invest-2023
The fast-growing Decentralized Finance (DeFi) sector continues to revolutionize the blockchain and cryptocurrency landscape by offering increased accessibility and inclusivity. This ecosystem (DeFi) has a total market cap of $50,821,930,505, which is much more practical and cost-efficient than traditional finance via an internet connection alone.
In this article, we will present our list of a select number of projects to help users looking to invest in projects within the broader DeFi ecosystem.
Warning
For 2023, this article, which has been written to give an idea to the users who will invest for the year 2023, does not contain any investment advice, and it is recommended that those who will invest should do their own research and consult an advisor.
Ethereum (ETH)
The first best DeFi Crypto Projects to invest in 2023 is Ethereum If there is a list for investment in the DeFi space, Ethereum should be at the top of that list. The reason is that Ethereum contains the majority of DeFi protocols. Many of the protocols that people involved in the cryptocurrency markets have heard of are built on the Ethereum blockchain. The fact that DeFi protocols are built on Ethereum means that these protocols use the native token of the protocol they run on as a means of payment and transfer of value.
As the use of DeFi protocols and the overall DeFi ecosystem grows, demand for Ethereum and its native token, Ether, will increase. With the increase in demand for Ether, the token will gain value. Ethereum, which gave investors a good return in the last bull cycle, will be among the stars of the next bull.
Uniswap (UNI)
Meet the largest decentralized finance exchange in the world of Decentralized Finance! UNI ranks second on our list of the first best DeFi Crypto Projects to invest in 2023. Today, Uniswap is available on Ethereum, Polygon, Arbitrum, Optimism, and other layer 2 networks. The UNI V3 DEX trades over $1 billion in daily volume, making it one of the highest revenue-accruing DeFi applications. The platform has also expanded to include an NFT Marketplace that is set to compete with OpenSea & LooksRare.
With UNI, the native token of Uniswap, an ERC-20 token, users can access various DeFi services on the platform, such as liquidity mining, governance, and insurance. In addition, the UNI token provides its holders with benefits such as the right to vote on the future of the project.
AAVE
Aave is the largest multi-chain finance platform where users can lend and borrow a wide range of cryptocurrencies. The platform has over $6 billion in total value locked (TVL) and offers a wide range of DeFi services, such as high-yield savings, flash loans, and tokenized real-world assets.
Aave also offers various services to users, such as coin staking. Currently available on Ethereum, Avalanche, Polygon, Arbitrum, and other networks, the token value of this multi-chain platform will surely increase as traffic increases.
Fantom
Ethereum was the first cryptocurrency to provide smart contracts. However, since then, the Ethereum network has had a scaling problem and a gas fee problem. Fantom is a project that emerged as a reaction to this situation and aimed to realize faster transactions at a lower cost. This platform simplifies the borrowing, lending, and trading of synthetic assets.
This project, which came to the market as an Ethereum killer, is one of the projects that can be considered as a competitor to ETH in the portfolio due to the areas where it stands out compared to Ethereum.
GMX
GMX is a project for users who want to trade in a decentralized environment. It is a multi-chain derivatives platform that allows users to trade leveraged trades up to 25X on Avanalache, Arbtirum, and BNB Chain.
Lido Finance (LDO)
LDO ranks last in our list of the top best DeFi Crypto Projects to invest in 2023, which allows users to experience free staking. It is a liquid staking derivative for Ethereum, Solana, and Polygon that allows users to earn a return on staked assets without the need to commit for a long time. The native token of this project is LDO. It is the largest DeFi protocol on the Lido platform by total value locked (TVL), which currently exceeds $8 billion.
Conclusion
As a result, these six DeFi projects have seen good price movements during past bull seasons and are still developing investment products. Although DeFi offers good investment opportunities, people should conduct in-depth research before investing. It should not be forgotten that cryptocurrency markets are volatile and changing fast.
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