The Top DeFi Cryptocurrencies of 2022
Decentralized finance (DeFi) refers to the array of financial services available on public blockchains. These services take banks, brokerages and other centralized institutions out of picture and by removing these intermediaries, costs are slashed, and control is returned to the individual. Also, blockchain technology enables DeFi applications to use smart contracts to execute fund transfers almost instantaneously between digital wallets.
The DeFi trend has taken off, reaching new heights over the last year due to its versatility. It enables crypto holders to perform a wide range of activities like lending, borrowing, trading crypto assets and derivatives, purchasing insurance. earning interest and more.
A few of the top DeFi cryptos of 2022 include Aave (AAVE), Balancer (BAL), Compound (COMP), Curve DAO Token (CRV), Maker (MKR), PancakeSwap (CAKE), SushiSwap (SUSHI), Uniswap (UNI), and ArbiSmart (RBIS). Some of the metrics that show why these DeFi cryptos are so promising include market capitalization, which is the current asset price multiplied by the circulating supply, and the Total Value Locked (TLV), which is the sum total of all the assets deposited in the project that are at work earning the contributor tokens, interest and other rewards.
Among the biggest names in the crypto market, is AAVE, which with a market cap of 2.5B and a TLV of 12.4B is without question one of the top DeFi cryptos of 2022. The Aave decentralized finance protocol allows users to borrow and lend cryptocurrency. Those who wish to loan funds in return for rewards can contribute crypto assets to a liquidity pool. Meanwhile, those who wish to borrow funds can provide crypto collateral, which will enable them to take flash loans through liquidity pools. Use of the AAVE token is incentivized, with token holders receiving discounted transaction fees and the right to vote on the future direction of the protocol.
The Balancer protocol is a non-custodial automated trading platform and portfolio manager, with a market capitalization of 0.1B and a TLV of 3.1B. As an automated market maker (AMM), it allows two users to transact their assets without any middlemen. Rather than pay fees to a financial manager for rebalancing their portfolio, as with a traditional index fund, Balancer users can collect fees from traders rebalancing their portfolios with arbitrage.
Another of the top DeFi cryptos of 2022 is Compound (COMP). The project soared in value last year and is on track to reach new highs in the year ahead. COMP presently has a market cap of 1B and total locked value of 7.4B. It allows lenders to earn interest for contributing to Compound liquidity pools and allows borrowers to provide collateral so they can receive secured loans from the pools.
Curve DAO Token (CRV)
With a market cap of 1.8B and a huge TLV of 22B, the Curve Decentralized Autonomous Organization token is unquestionably one of the top DeFi cryptos of 2022. Offered on the Ethereum blockchain, Curve DAO is an efficient, secure, decentralized exchange liquidity pool. It provides low-risk, low slippage stablecoin trading and fees of 0.02% on all Curve DAO pools in return for liquidity.
Maker (MKR) is the ERC-20 governance token of the MakerDAO and the Maker Protocol, a peer-to-contract lending platform, enabling users to mint and manage the DAI, a USD-pegged stablecoin. The MKR token has a total locked value of 16B and a market capitalization of 1.8B. Maker locks Ethereum in a smart contract, and leverages assets to generate DAI to allow loan over-collateralization.
SushiSwap is a prominent decentralized exchange and lending marketplace that offers automated liquidity on the Ethereum blockchain. It has a market cap of 0.7B and a total locked volume of 5B. Yield instruments enable exchange liquidity provision by staking a token pair and earning the exchange’s native Sushi token as a reward.
A fork of SushiSwap, PancakeSwap is an automated market maker and yield farm. It runs on the Binance Smart Chain (BSC), which allows it to execute trades more quickly and cheaply. With a market cap of 2.7B and a TVL of 4.8B, CAKE is a rapidly growing DeFi crypto providing yield farming, lotteries, and initial farm offerings.
Uniswap is a leading decentralized protocol for providing automated liquidity and trading ERC-20 tokens on the Ethereum blockchain. It is a frontrunner for top DeFi crypto of 2022, with a hefty market cap of 9B a TLV of 8B, and trading volume of over 90M.
Later this month, here at ArbiSmart, we’ll be launching our own decentralized yield farming program via Uniswap. A user-friendly ArbiSmart interface will enable program participants to easily track and execute transactions, view statistics, or withdraw funds at any time, as there is no lock on funds. By contributing to ETH/RBIS and USDT/RBIS liquidity pools, users can stake capital for returns that are unmatched in the industry. ArbiSmart yield farmers will be able to earn up to 190,000% APY and be rewarded with 0.3 % of the fees on every trade. Ownership of RBIS, our native token, will also give the holder voting rights, enabling them to determine the future direction of the entire ArbiSmart ecosystem.
Demand for RBIS will be driven even higher next quarter, as we introduce more utilities, including an NFT marketplace, and an interest generating wallet, which will be closely followed by the release of a mobile app for buying, exchanging, and securely storing crypto. These new RBIS utilities will increase liquidity and trading volume, pushing up demand as the limited token supply drops, resulting in a rise in price.
The value of RBIS will be further increased by the continuation of the listing process, which began in early January. RBIS is already available on major exchanges including Coinsbit, HitBTC, SushiSwap, LAToken and Uniswap, with more to come, as exposure to the token grows, gaining credibility, availability and liquidity.
To learn more about all the developments in the ArbiSmart pipeline, check out our site, or to find out about DeFi cryptos in 2022, NFTs the metaverse, crypto trading and other digital currency trends, browse the ArbiSmart blog.