Decentralized finance (DeFi) coins are now quite popular assets in the crypto market. DeFi platforms provide a space for borrowing, saving, lending, and trading without the traditional bureaucracy of financial markets. This popularity makes them a good investment option.
The new wave of DeFi applications builds on existing layer 1 networks to leverage their private side chains. DeFi provides a new way to manage an app’s finances, funding, administration, and operations. All of this is controlled by smart contracts, meaning there is no room for corruption or counterparty risk. These are the key features of DeFi.
Since many DeFi projects exist nowadays, it can be difficult to decide which ones you should invest in. Below are the top 10 best DeFi coins you should consider buying in 2023.
#1 Solana (SOL)
Solana (SOL) tops our top 10 best DeFi coins ranking due to its consensus mechanism. This coin uses a Proof-of-History (PoH) mechanism, which speeds up transactions.
The coin is also a layer-1 platform, as it does not require assistance from other platforms to make transactions. These features make it a valuable and promising coin that can be expected to explode in the near future.
Read Next: What Is Solana (SOL): How to Buy Solana Crypto Instantly in 2023
#2 Avalanche (AVAX)
Avalanche (AVAX) is one of the top 10 DeFi coins you can invest in. The coin is in direct competition with Ethereum due to lower transaction costs and faster transactions. Avalanche currently claims to be the fastest smart contract platform in the crypto and blockchain industry.
In 2021, AVAX raised $230 million to support its projects and has made some significant connections with other blockchain projects, including Graph, Chainlink, and SushiSwap. Given the rapid development of the coin and the high interest in it, AVAX is sure to become a top investment to consider in 2023.
Read Next: What Is Avalanche (AVAX): How to Buy Avalanche Crypto Instantly in 2023
#3 Fantom (FTM)
This is another top 10 DeFi coin that you should consider adding to your investment portfolio. Fantom introduces attractive features to make it a major player in the blockchain industry. It is secure, provides high transaction speeds, is open source, permissionless and decentralized.
The coin can boast a high market cap of over $1 billion at the time of writing. This trend will continue in 2023 as the coin’s popularity in the crypto industry grows.
#4 Harmony (ONE)
The coin was launched in 2019 and designed to be scalable and decentralized. It focuses on creating viable markets for intangible assets, fungible tokens, and data exchange. This project can boast several important partnerships and has raised around $300 million to develop its ecosystem.
This fund increased the coin’s rate and attracted more users. The project focuses on improving network scalability, making it a popular platform and investment option.
#5 Waves (WAVES)
WAVES is a unique coin operating in a three-in-one ecosystem. It operates as a decentralized exchange, a platform for launching tokens, and a digital asset. It aims to encourage the mass adoption of digital coins and increase flexibility in the industry.
The platform allows you to develop and deploy smart contracts. It also makes it easier for users to create tokens without any programming knowledge. With such features, the project will attract a lot of users, which will boost its rate.
#6 ThorChain (RUNE)
Another coin from the top 10 best DeFi coins list. ThorChain is built using the Cosmos SDK and running using the Tendermint consensus mechanism, ensuring that all transactions’ data is untraceable. This feature has made ThorChain especially popular among many users and investors.
RUNE is a fungible coin, meaning owners can manage their assets without the need for a third party and at no cost. Due to its high popularity and fast adoption, ThorChain can be a promising coin to invest in.
#7 Kadena (KDA)
KDA is not a very popular coin, but it has caused quite a stir in the cryptocurrency industry. Similar to ETH in the Ethereum network, KDA in Kadena is the way in which miners are compensated for mining blocks on the network and the transaction fee that users pay to have their transactions included in a block.
Like most smart contract platforms, Kadena focuses on higher transaction speed at a lower cost. It can currently process around 480,000 transactions per second compared to 20 Ethereum transactions. This feature attracts new users to the platform and increases its rate.
#8 Curve DAO (CRV)
Curve Finance is currently the largest decentralized exchange on Ethereum. Curve DAO is the governance token of the Curve Finance platform. The platform has two main use cases, including cryptocurrency exchange and staking. It also has very low fees and some of the smallest price differences among stablecoins. Thus, the Curve token grows in value as its platform continues to attract new users.
Curve DAO is like a decentralized crypto exchange where users and protocols can exchange stablecoins with low fees and risks. Unlike conventional exchanges that connect a specific buyer and seller, Curve uses liquidity pools, and those who provide liquidity are rewarded. The platform is non-custodial — that is, developers do not have access to user assets, and everything is stored on decentralized wallets.
#9 Oasis Network (ROSE)
Oasis Network is a layer 1 privacy blockchain that uses a Proof-of-Stake consensus mechanism. Unlike Ethereum, where transactions are public, on the Oasis network, users can enjoy privacy. Its technological design is also impressive, as it serves as a hybrid of Polkadot and Ethereum.
Investors are also attracted by its transaction speed of over 1,000 transactions per second. With its highly scalable and privacy-preserving architecture, the Oasis network aims to develop private and scalable decentralized finance (DeFi) platform.
#10 Polkadot (DOT)
Polkadot is an interesting project from the top 10 best DeFi coins list. It is a platform that allows independent blockchains to transfer information and transactions to each other using the Polkadot relay chain.
This feature greatly increases the speed of transactions on the blockchain and is more scalable compared to Ethereum. Providing such a platform to easily develop DeFi projects makes the DOT coin popular and a good investment option in 2023.
Conclusion
The DeFi industry is constantly evolving. In a short span of time, DeFi platforms have managed to evolve from an experimental part of the financial world to the huge ecosystem that it is today. While it may seem like a niche sector right now, the wider market may soon actively adopt DeFi apps.
Disclaimer
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.
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