Decentralised Finance (DeFi) coins have found their way into the minds of many cryptocurrency investors and people outside of the crypto community who have a genuine interest in entering it for the very first time. Specifically, the utility and importance of these DeFi coins cannot be ignored or understated.
DeFi platforms have provided users with ways to borrow, save, lend or trade crypto without any traditional bureaucracies found within the financial markets. This level of popularity is making the top DeFi coins a solid option to invest in the eyes of many.
However, with so many projects out there, it can be challenging for newcomers to figure out exactly what is worth investing in and what is not.
To make things easier for you, we have selected the top 10 best DeFi coins you can invest in 2022 before the next boom in decentralised finance through our DeFi coins list.
- Lucky Block – Exciting DeFi Coin with Rewards
The Lucky Block project – which was first founded in late 2021, is an innovative crypto and NFT competitions platform. The Lucky Block ecosystem stands out from conventional types of prize draws – insofar that all its gaming outcomes are decentralized and more transparent.
In order to offer a decentralized platform, Lucky Block games are executed by a smart contract. If you’re familiar with how smart contracts work, then you will know that the underlying code is both immutable and free from manipulation.
Therefore, Lucky Block players can be sure that all gaming outcomes are random and legitimate. Moreover, as Lucky Block operates on top of the Binance Smart Chain, this means that players from all over the world can access its games.
In terms of how to invest in this top-rated DeFi coin, the Lucky Block token initially held its pre-sale launch in January 2022 – whereby it raised the crypto-equivalent of $5 million. At the end of the same month, the Lucky Block V1 token launched to the public via Pancakeswap – where it has since become one of the best-performing digital assets of the year.
To illustrate this point, Lucky Block was priced at just $0.00015 during its initial pre-sale campaign. Since then, CoinMarketCap notes that the project has hit highs of $0.00961 per token. As such, this represents gains of over 6,000% in just over a month of trading.
The project has since launched its V2 token on LBank and MEXC – eliminating the 12% transaction fee to 0%. The price rocketed up 400% after the MEXC listing in mid-August and expected to surge again after it reaches Gate.io – the fifth-largest crypto exchange – on September 1.
Ultimately, in buying Lucky Block today – you can still get in on this project super-early.
- Uniswap – Top Decentralized Exchange With Leading DeFi Coin
Next up on our list of the best Defi coins to watch in 2022 is Uniswap. This project represents the true definition of decentralized finance, insofar that it is home to an innovative exchange platform that allows traders to swap tokens on a peer-to-peer basis. In other words, in buying and selling crypto assets via Uniswap, no centralized party is required.
This is in stark contrast to the industry norm, which is dominated by large centralized crypto exchanges such as Binance, FTX, and Coinbase. All of which sit between buyers and sellers – making huge commissions along the way. In the case of Uniswap, the exchange doesn’t utilize traditional order books to match market participants.
Instead, the platform is home to an automated market maker – or AMM, model. In its most simple form, Uniswap’s AMM will set token prices based on a wide variety of variables – such as volume, demand, and market capitalization. This allows for a smooth and burden-free way of trading cryptocurrencies in a decentralized manner.
In terms of its native Defi coin – UNI, the project is a top 30 digital asset by market capitalization. When the token was first launched on public exchanges in 2020, you would have paid in the region of $7. Year-to-date 2022, UNI has hit highs of over $17. This represents a growth of over 140%. With that said, investors will be looking for a return to the $40+ region that UNI hit in 2021.
- Terra – Leading Defi Coin That Continues to Outperform the Market
Update – LUNA crashed 99% in May 2022. Read more about why Luna dropped.
There is no denying that the broader cryptocurrency markets – especially that of Defi coins, have largely been bearish moving into 2022. With that being said, there appears to be no stopping the value of Terra – which continues to perform extremely well. For those unaware, Terra is a decentralized finance project that specializes in algorithmic stablecoins. It’s native token is LUNA.
Unlike most stablecoins in the market, Terra doesn’t just focus on major fiat currencies such as the US dollar or euro. On the contrary, the Terra protocol covers a full range of other national currencies – including but not limited to the South Korean won, Japanese yen, and Chinese yuan.
In fact, Terra even supports the SDR (Special Drawing Rights) – which is the currency backed by the International Monetary Fund. In terms of its performance, – Terra was priced at just $1.30 per token when it was launched on public exchanges in 2019 – as per CoinMarketCap. Fast forward to early 2022 and the same Defi coin is priced at over $90.
This means that in less than three years of trading, Terra has increased in value by over 6,800%. In more recent times, Terra was trading at just $44 in the four weeks prior to writing this guide – meaning that the value of the project has more than doubled in just one month alone. And as such, Terra has since become a top-10 cryptocurrency for market capitalization.
For a more detailed breakdown on how to buy Terra Luna today, you can also read our in-depth guide.
- Decentraland – Invest in the MetaVerse via the MANA Token
Looking for the best MetaVerse coin in 2022? The MetaVerse is expected to become extremely popular in the coming years, with the likes of Facebook even rebranding its NASDAQ-listed company name to Meta Platforms. And as such, if you’re looking to invest in this growing concept early, you can do so by purchasing some MANA tokens – which is the native digital asset of Decentraland.
In its most basic form, Decentraland is a project built on top of the Ethereum blockchain that offers a virtual gaming world that can be accessed by all. One of the most innovative things about Decentraland is that users can buy virtual land and subsequently build digital real estate.
This real estate – alongside a full suite of other in-game items, can then be sold on the open marketplace. This business model has already achieved a proof-of-concept for several reasons. First and foremost, some real estate plots sold via the Decentralized platform have raised in excess of a million dollars.
Second, the MANA token – which is the native currency used for all purchases and sales made via the Decentraland platform, is now a multi-billion dollar project. In terms of performance, MANA was worth a mere $0.025 back in 2018. In mid-2021, the crypto asset hit highs of almost $6. And as such, this represents significant growth of nearly 24,000%. Did you know that Decentraland is one of the best web 3.0 coins to buy moving into 2022?
- Chainlink (LINK)
Chainlink or link is the first cryptocurrency you should acquire and hold in 2022. If you acquired this cryptocurrency in 2017 at its all-time low and sold it in 2021 at its all-time high, you would have almost 60-times your money. For those who are unfamiliar, Chainlink is a decentralized oracle system. Since the introduction of Ethereum and the increased use of decentralized applications in 2017, smart contracts have gradually proven their utility. The implications are varied, influencing finance, insurance, and governance approaches, and a new form of application is emerging, hosted on public blockchain networks, primarily Ethereum. These programs are auditable, censorship-resistant, and run flawlessly 24 hours a day.
It can store and transfer value in the form of tokens, and its execution of smart contracts is both predictable and unstoppable. There are flaws in services that require data from outside the blockchain. Google also utilizes the technology of chain link to connect its BigQuery cloud service to Ethereum contracts. It’s listing on Coinbase, increased the buzz and drove the token’s price up to more than eleven dollars. Chainlink is currently priced at $7.93 and the market capitalization is $7.93 billion. All time high of LINK was $52, so this is a very good level for investing. That’s why this is one of the best cryptocurrencies to buy and hold in 2022.
- Solana (SOL)
Solana is our next cryptocurrency. The Solana crypto is one of the world’s fastest blockchain and cryptocurrency ecosystems, with over 400 NFT projects in web 3 and beyond. With a competitive platform and cheap transaction fees, it is currently the most likely Ethereum killer. Solana is an exciting cryptocurrency with significant growth potential. Solana was launched in April 2019 and initially traded for less than $1 per token.
Since then, its value has risen, with the coin trading for more than $250 in November 2021. The Solana platform is a decentralized computer network that operates on the blockchain. Anatoly Yakovenko is the founder and the most important person behind Solana. Solana, like Ethereum, allows for the development of Dapps. The blockchain has attracted hundreds of project holders who choose it over Ethereum. Solana is currently one of the greatest blockchains in position to compete with Ethereum.
It is faster, with up to 50 000 transactions per second compared to Ethereum’s 20 transactions per second. Despite the fact that it is a new project, its fees are significantly lower than those of Ethereum. The price of Solana is rather steady. Nonetheless, the coin is more volatile than Ethereum. There is no uncertainty regarding Solana’s long-term adoption. In just two years, the price of Solana has climbed more than 520 times, from 50 cents to 260 dollars, and it is now back down to $33. This is a really good entry because it could soon hit 1000 because its adoption is getting increasingly common. By the way, it is the ninth most valuable cryptocurrency at the moment.
- Cosmos (ATOM)
The Cosmos will be the third cryptocurrency you should buy in 2022. Cosmos is a decentralized network of parallel autonomous blockchains. Before all blockchains were isolated from one another and unable to speak with one another, each blockchain was scalable and interoperable. The universe is extraordinary for a variety of reasons. Most notably, it has a distinct approach to the bitcoin market that serves the entire blockchain industry in order to unify it. As a result, investors are watching Cosmos closely as it expands its usage of blockchain.
Cosmos claims to be the blockchain internet, a network of interconnected blockchains. It is capable of connecting all the others and providing them with instruments for frictionless trade and the development of unlimited possibilities. Assume you only have bitcoin and wish to transmit it to someone who only has an Ethereum wallet. Thanks to Cosmos, this transaction is doable. It’s similar to a bank doing a foreign exchange transaction and a transfer on two distinct financial networks, such as CPA and SWIFT. However, in a completely automated and decentralized universe, it is also conceivable to create an application that can be utilized on all blockchains at the same time.
Also, there is no need to program it on each blockchain individually. The cosmos throws up remarkable possibilities, like connecting the Ethereum Defi ecosystem to bitcoin, which has significant consequences. It adds investing options to bitcoin by definition. ATOM is the cosmos system’s native cryptocurrency. Crypto enthusiasts are incredibly excited and eager to see how this idea develops. All are especially excited about the synergies that may be built between the bitcoin and Ethereum blockchains, and developers have recently been discussing this, which is one of the best cryptocurrencies to buy and hold.
Cosmos is currently being traded at $16.30 and its all-time high was $44.70. This is a very good level to buy this crypto.
- Avalanche (AVAX)
Finally, there is Avalanche crypto which is one of the best cryptocurrencies to buy and hold. It is a virtual currency built on a project to create applications based on financial asset trade or possibly decentralized finance services. It intends to serve as a platform for the development of decentralized applications. Its network can handle around 4500 transactions per second. This distinguishes it from other systems such as Ethereum. Smart contracts enable the trading of all types of assets and the decentralized control of this coin initiative.
AVAX is considered a reliable project in which it is important to invest without any doubt. Its consistent progress since its inception is also a solid premise on which investors may rely. Furthermore, Avalanche is among the top 100 virtual currency projects. It currently has over 1000 complete block-producing nodes on its Denali test network. Similarly, it processes around 4500 transactions per second. Since the debut of the Avalanche coin, the platform has found itself in a situation where it is quickly becoming one of the most important cryptocurrencies.
Avalanche (AVAX) is currently being traded at a level of $18.47 and the all-time high was $146.22. That is why this is a very good level to invest in this crypto.