Over the past few years, several trends have been played out in the crypto market. Decentralized finance came into the focus of crypto fans again and again. DeFi is, at the same time, a development that is not likely to disappear too quickly. DeFi applications could disrupt the financial world in the next few years. Then, DeFi tokens would also profit in the long term. Therefore, future-oriented investors can position themselves early for DeFi’s triumphant march.
Besides the future potential of DeFi, the following article also presents five DeFi tokens whose price could rise significantly in the next few years.
What is DeFi?
DeFi stands for decentralized finance. This is a multifaceted ecosystem in which consumers regain personal responsibility. Henceforth, the users themselves decide about money again and hold their assets in safe custody on their own responsibility. Smart contracts are taking their place instead of intermediaries in the financial system. They offer the advantage of significantly faster processing and lower costs. Meanwhile, numerous DeFi projects target different usescases: Lending, Borrowing, DEX, Digital Assets, Crypto Derivatives or Payment.
DeFi offers these opportunities in the next decade!
In principle, decentralized finance can fundamentally change the financial system as we know it today. Through blockchain technology and smart contracts, we could see financial services become cheaper, transparent, and more trustworthy in the coming years. Simultaneously, DeFi offers the opportunity for widespread equality.
This is because many people around the world still have no real access to the economic and financial system. The prospects for the future of decentralized finance are good, and its acceptance is likely to increase rapidly. In any event, DeFi applications are likely to become more and more part of our everyday lives and may even completely disrupt the financial and banking system.
This societal development offers the opportunity to benefit from the increasing adoption of many cryptocurrencies to investors. Whereas DeFi could spell crisis for traditional financial players and banks, opportunities are emerging for bold investors.
5 Best DeFi Tokens You Should Buy Today
Now that you have a better understanding of DeFi finance, in the following, we will introduce five best DeFi tokens, stay tuned.
Admittedly, Ethereum is not a typical DeFi token. Still, Ethereum’s network should not be missing from this list. This is because, despite a steady decline in market share, the blockchain is still the leader in the DeFi sector. In the years 2020 and 2021, there was a sharp increase in the number of DeFi applications and users on the Ethereum network. For those who want to use the existing coins profitably, the Ethereum blockchain offers several options.
Ethereum is likely to remain the leader in DeFi applications in the medium term. By upgrading ETH 2.0 and combining it with various Layer 2 applications like Polygon, DeFi users can bypass the high gas fees and benefit from faster speeds. At present, the Maker lending platform, DEX Curve Finance, along with Convex Finance, are the applications with the largest TVL on the Ethereum blockchain.
Which DeFi token should I buy?
If crypto fans build a diversified crypto portfolio, DeFi tokens cannot be missing. This is because currently, the Decentralized Finance space is much more tangible than megatrends like the Metaverse. Consequently, the chances are good that DeFi adoption will increase, and our financial world will become more decentralized. Finally, the manifold advantages over traditional financial intermediaries cannot be denied.
Yet, there is one crux to the matter. This is because more and more crypto projects and DeFi tokens are floating around in the DeFi sector, and not every coin will catch on. By contrast, Lucky Block has a unique selling point as an innovative crypto lottery. This is not about decentralizing credit, trading derivatives or crypto exchanges.
Instead, it is about disrupting online lotteries. Lucky Block thus goes a step further than other DeFi projects and aims to change the gambling world. If this ambitious plan succeeds, an early investment in the LBLOCK token could be worthwhile for all crypto fans.