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Highlights
- One crypto token returned nearly 7000 per cent YTD to its backers
- Another token’s YTD return is a whopping 12,000 per cent
- Most other billion-dollar market cap DeFi platforms have also at least doubled investors’ money
The universe is strange. NASA Mars rover has just detected the presence of an ancient lake and river delta. It could hold signs of alien life on the Red Planet.
Here on earth, what investors detected in 2021 was the promising use of decentralized finance (DeFi). This can hold signs of how finance unfolds in the future. DeFi platforms eliminate intermediaries and any centralized authority. By doing this, DeFi makes trading faster and cheaper.
The DeFi industry had a cumulative market cap of over US$130 billion at the time of filing the story.
Let’s know about top ten DeFi cryptos that made fortunes for investors in 2021.
1. Terra (LUNA)
The world of cryptocurrencies is notorious for extreme volatility. Terra’s blockchain could be an answer. Here, stablecoins, which are pegged to an asset like the US dollar, drive payment systems. Terra’s aim is to use the best of both worlds – fiat currencies and crypto tokens – to deliver a quick remittance system.
DeFi cryptos that made fortune for investors
Terra is said to have joined forces with e-commerce platforms to make its token, LUNA, a medium of exchange.
LUNA is currently trading at nearly US$46 apiece. It has one of the highest market caps – nearly US$18.6 billion – within the DeFi crypto industry.
LUNA has given a whopping 7,000 per cent year-to-date (YTD) return.
Also read: 5 top-rated cryptocurrencies with over 7,000% YTD returns
2. Uniswap (UNI)
Uniswap provides decentralized trading services to crypto enthusiasts. DeFi tokens can be traded on its automated platform. The platform also helps in maintaining liquidity in the crypto market.
The governance token of Uniswap is UNI. Governance tokens give power in the hands of users to control how the entire infrastructure is designed.
At the time of writing, UNI was trading at nearly US$25. The market cap was nearly US$15.3 billion. Uniswap is one of the most profitable multi-billion dollar market cap cryptos of 2021.
UNI’s YTD return is nearly 400 per cent.
3. Avalanche (AVAX)
A competitor to Ethereum’s dominance in the smart contracts space, Avalanche boasts three blockchains to deliver distinct functions. Many projects that were hitherto on Ethereum’s blockchain have integrated with the blockchains of Avalanche.
AVAX is the native token. Avalanche claims to be more easily scalable than rival blockchains, including the most popular Bitcoin.
At the time of writing, AVAX was trading at nearly US$62. The market cap was nearly US$13.7 billion.
The YTD return of AVAX is nearly 1,800 per cent.
4. Tezos (XTZ)
Heard of hard forks? These are basically used to upgrade the infrastructure of some of the blockchains. In Tezos, it is claimed that upgrades can be carried out without a hard fork.
Tezos blockchain requires users to stake their holding before they can undertake governance. XTZ acts as the native currency and is used for staking purposes.
At the time of writing, XTZ was trading at nearly US$7.6. Its market cap was nearly US$6.5 billion.
The YTD return of Tezos is nearly 300 per cent.
Also read: Top 5 cryptocurrencies available for under $1
5. Fantom (FTM)
Forget about proof-of-work or proof-of-stake consensus protocols used by most of the blockchains. In the world of Fantom’s decentralized finance, a unique ‘bespoke’ consensus underpins all transactions.
Fantom claims to have reached the transaction speed of less than two seconds. FTM is the native crypto of its blockchain. At the time of writing, FTM was trading at nearly US$2.1. The market cap was nearly US$5.3 billion.
The YTD return of FTM is an eye-popping 12,000 per cent.
Also read: What are DeFi games & which are the most popular DeFi games?
6. Maker (MKR)
Maker is a unique blockchain. It facilitates issuance of a separate stablecoin, DAI. MKR is the native token of Maker protocol, which empowers holders to make changes to the platform’s infrastructure.
Built on Ethereum, Maker was one of the early entrants in the world of DeFi.
At the time of writing, MKR was trading at nearly US$2,470. The market cap was nearly US$2.4 billion.
The YTD return is nearly 300 per cent. This may appear less, but Maker’s protocol has its own unique set of features.
7. THORChain (RUNE)
THORChain allows crypto exchange on its blockchain-powered DeFi platform without users having to lose full custody. The DeFi platform is strange in the sense that no info exists about its founders.
RUNE is the native token, and the platform is said to be giving out all the profits to RUNE holders.
At the time of writing, RUNE was trading at nearly US$8.8. The market cap was nearly US$1.9 billion.
The YTD return of RUNE is nearly 600 per cent.
8. Serum (SRM)
Serum claims to be a decentralized exchange with fully on-chain order book. This, it says, can help to improve the efficiency of crypto trading activities.
SRM is the native token of Serum, and it provides voting rights to its holders.
At the time of writing, SRM was trading at nearly US$7.9. The market cap was over US$1 billion.
The YTD return of SRM is nearly 650 per cent.
Also read: 10 little known cryptocurrencies investors must explore
9. PancakeSwap (CAKE)
PancakeSwap uses Binance Smart Chain to provide crypto exchange services to its users. It allows users to swap BEP20 tokens. The native token, CAKE, is used to reward users of the platform.
At the time of writing, CAKE was trading at nearly US$19.4. The market cap was nearly US$4.4 billion.
The YTD return of CAKE crypto token is almost 3,000 per cent.
10. Chainlink (LINK)
Chainlink claims to facilitate off-chain data integration. Blockchains can use Chainlink’s network to join forces with off-chain events and feeds. Smart contracts form the basis of the network.
LINK, the native token, was issued through an initial coin offering (ICO) in 2017.
At the time of writing, LINK was trading at nearly US$26.4. The market cap is nearly US$12 billion.
The YTD return of LINK is nearly 130 per cent.
Also read: Can Bitcoin be termed as the ‘asset of the century’?
Bottom line
DeFi applications provide exchange services to crypto token holders. In the course of doing this, they also create liquidity in the crypto market. DeFi platforms were one of the top news of crypto space in 2021. In the last quarter of the year, a few of the above many present a good investment opportunity.
