- The DeFi industry caught major attention in the second half of 2020 and ever since then it has been booming across the world.
- Decentralized financial (DeFi) services are expected to rival traditional financial services in the future.
- DeFi services don’t require a need for an intermediary and that could be a reason why people will likely prefer DeFi projects in the future.
We are about to enter the fourth quarter of this year and despite some ups and downs in 2021, it has been a smooth year for the cryptocurrency market and blockchain networks.
One sector that stood out this year was the decentralized finance (DeFi) sector, and it is expected to boom further in the coming years. The DeFi industry caught major attention in the second half of 2020 and ever since then, it has captured millions of users looking for innovative financial services in a decentralized context.
The DeFi industry reportedly has US$ 100 billion locked in various blockchain protocols that offer decentralized financial services like lending, staking, or borrowing. Even the blockchain-based gaming and non-fungible tokens (NFTs) are under the DeFi infrastructure and the rise in these two spaces is contributing to this sector's growth.
Before we progress to Q4 2021, let's look at the top five DeFi projects:
It is a liquidity protocol for derivatives and acts as a backbone for derivatives trading in a decentralized finance infrastructure. The Synthetix protocol is based on the Ethereum blockchain and allows users to make synthetic representations of real-world assets as tokens.
The tokens minted as synthetic representations can be pegged to the value of the asset. The native token of the platform is known as the SNX token and it has surged by 6.1 per cent in the last 24 hours, according to CoinGecko.
Priced at US$ 10.84 per token, the cryptocurrency has surged by 153 per cent in the last 12 months. Its circulating supply is 174,569,901 tokens.
This open protocol allows its users to access inter-blockchain liquidity for decentralized applications. This means that the users of the Ren protocol can transfer all kinds of tokens between any blockchain and it does not create synthetic or wrapped tokens in the process.
Ren can transfer liquidity to any ecosystem with existing smart contracts and does not need synthetic representations. Based on the data from CoinMarketCap, the REN token has a market cap of US$ 796.3 million.
In the last 24 hours, REN token prices surged by four per cent to US$ 0.8 per token.
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One of the earliest DeFi projects, the Maker ecosystem was started with a vision to build a variety of decentralized financial products on blockchains that are smart contracts enabled.
This project is based on the Ethereum blockchain and it comprises a decentralized organization called MakerDAO and also Maker Protocol, a software platform to enable users to issue and manage a stablecoin named DAI.
MKR is the governance token of MakerDAO and Maker Protocol. It has a circulating supply of 901,310 tokens and the max supply is 1,005,577 MKR tokens.
The MKR token was priced at US$ 2518.89 per token after it surged by 4.5 per cent in the last 24 hours.
This decentralized blockchain oracle network was built on the Ethereum blockchain by a community of researchers, developers, and users for the public good and benefit of the blockchain ecosystem. Notably, oracles are decentralized data feed services on the blockchain.
Many decentralized applications need oracles to interact with a wide variety of data and Chainlink is believed to be one of the leading providers of oracles. The native token of this protocol is LINK, and it powers the decentralized oracle network.
The LINK token has surged by five per cent in the last 24 hours and it was priced at US$ 23.95 per token, at the time of writing.
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This blockchain platform is highly scalable for DeFi, decentralized and enterprise applications. It aims to solve problems associated with smart contract platforms and helps in increasing the transaction speed.
The native FTM token of this platform acts as a backbone for transactions and allows staking activities and fee collection. The FTM token is based on the proof-of-staking concept, and it can be used for user rewards as well.
The FTM token has surged by 2556.4 per cent in the past year, as of Thursday, September 23.
Decentralized financial services are expected to rival and perhaps beat traditional financial services in the future. DeFi services don’t require a need for an intermediary and that could be a reason why people will likely prefer DeFi projects in the future.