The 3 cryptocurrencies you can buy for DeFi price gains stand out with the potential for profit even in the crypto market decline. The crypto market is in a bearish trend, so investors who want to invest in cryptocurrencies need to be extra careful. However, by investing wisely in the best cryptocurrencies, you can earn even in the market drop.
The current market value of digital currencies is $1.05 trillion. In this case, the huge value and thousands of cryptocurrencies make it difficult for investors to choose which cryptocurrency.
While investing in a cryptocurrency depends on many factors, one of them is whether a coin can survive even if the entire crypto market is bearish. This requires good fundamentals and being in the right sector of the crypto market.
3 cryptocurrencies with earning potential
Today, we’ve rounded up the top 3 cryptocurrencies in the DeFi industry with strong fundamentals.
Uniswap is an Ethereum-based decentralized exchange (DEX), UNI to buy for DeFi price gain.
It was founded on November 2, 2018 by Hayden Adams, a former Siemens engineer. Uniwap’s goal is to deliver the management to its users and provide smooth cryptocurrency trading.
The platform eliminates unreliable transactions or the presence of third parties and order books. The native coin for the DeFi exchange is the UNI coin, which is used as a management coin and base transaction coin on the entire exchange. The total value locked in Uniswap is currently $6.18 billion.
Since its launch on September 16, 2020, it has experienced tremendous growth, from a launch price of $1.03 to an all-time high of $43.81 on May 3, 2021, an increase of 4153.4% . This was followed by a 9-day price drop that started on May 15, 2021 and was impacted by the general decline in the crypto market until May 24, 2021.
Figure 1. Detailed UNI graph.
The current price of UNI is $22.36 with a market cap of $13 billion as the current market direction is bearish, but price predictions suggest that the coin will soon experience the next gain in a few days.
The AAVE protocol is a digitized network that allows users to join a unique network as a lender or borrower. It is hosted on the Ethereum mainnet. AAVE joined the crypto race in 2017.
The network allows users to lend up to 17 assets and profit from them. The network’s governance coin is called “AAVE” and is used as the base transaction coin for its numerous utilities.
Aave offers its users a unique opportunity to earn with its credit availability and attractive interest rates. Interest rates on the Aave platform are divided into fixed and variable interest rates.
The fixed interest rate comes from an average of a month (30 days), while the variable rate is determined using algorithms to note demand from users; an increase or decrease will change the rate for both borrower and lender. These rates can be easily changed by the user at any time.
The token’s ICO was held on November 25, raising up to $16.2 million. Currently, the total value locked in UNI is up to $12.63 billion with a daily trading volume of $363.77 million.
Figure 2. Detailed AAVE graphic.
It recorded its highest price on May 24, 2021 with $667.43. At the time of writing, Aave is selling at $316.22 after dropping from $375 in the last 24 hours.
Some cryptocurrency investors predict that the AAVE token will go up to $442.03 by December 2021 and up to $1,460 by 2026. As such, it makes AAVE an ideal coin to buy at a low price.
It was founded in 2018 by the Compound foundation. The CEO of the foundation is Robert Leshner. Compound is a decentralized lending protocol built on the Ethereum blockchain. It supports borrowing ERC-20 coins to users to gain efficiency.
This is a period in which a user deposits some money into liquidity pools and earns some crypto assets as a reward. This user can reinvest the borrowed asset back into the pool to receive more crypto incentives.
COMP users can only withdraw a certain percentage of their deposited amount into the pool.
On June 25, 2020, Binance listed COMP on its exchange, which subsequently caused a massive spike in price. COMP reached its all-time high of $911 on May 12 and saw a premium of over 1387%.
Figure 3. Detailed COMP plot is shown.
Today, COMP is changing hands for $333.9. It has a market cap of over $1.6 billion in circulation and a total locked-in value of $7.5 billion. The coin was also affected by the general market drop in May 2021. Search 13 May to 27 May 2021
decreased by 43,438%. Then COMP drops as the market turns all red. Still, it might be a good time to buy COMP.
The previous history of the compound shows that it will improve once the bulls take over the market. This makes COMP an attractive coin to buy.
Why do these 3 cryptocurrencies stand out for DeFi earnings?
DeFi coins can be complex so investing in the right cryptocurrency will be difficult if you don’t understand the protocols and markets, so I hope you will be better informed after reading this article.
We have selected the top 3 cryptocurrencies that we think have the highest chance of earning above-average earnings in the medium to long term.
Uni, Aave and COMP coins are a key trio in truly adventurous price journeys.
Finally, they are all hosted on the Ethereum network, the world’s most used smart contract platform, where liquidity is plentiful.