If you’re following the financial markets, we’ll be covering the best DeFi altcoin projects to watch in 2022. While peer-to-peer (P2P) payment systems have become a standard part of today’s world, the annual earnings of cryptocurrencies continue to attract the attention of individual and institutional investors. In short, let’s start with what it brings to the DeFi industry and financial markets…
What are DeFi altcoin projects?
In an increasingly digital world of finance, DeFi focuses on bringing the convenience of peer-to-peer (P2P) transactions to investors. DeFi platforms leverage the efficiency and power of smart contracts, which are digital contracts that live on the Blockchain, creating a space for lending, borrowing, trading, saving and earning interest that doesn’t require all the usual bureaucracy and small details.
The goals of the DeFi network, on the other hand, are quite simple. In short, take a look at:
- Never mind the paperwork: Smart contracts are processed digitally on Blockchain technology, so there is no paperwork and no waiting time to complete transactions through the bank.
- Eliminate middlemen: Automating the contracting process on the blockchain eliminates the need for human agents, eliminating the need for external mediators such as lawyers to process agreements between parties.
- Meet brisk transactions: Without relying on different parties or dealing with waiting times to complete a transaction, DeFi makes doing business a smoother and faster experience from start to finish.
- Equalize opportunities: Most of the financial opportunities offered through DeFi platforms are usually reserved for large financial institutions such as hedge funds and banks. DeFi bridges the gap between the individual and the financial oligarchy.
If all that’s OK, now we’re taking a look at analyst Voyager’s list of 10 cryptocurrencies that could be the top DeFi altcoin picks of 2022…
Let’s start with the best DeFi altcoin Aave
Launched in 2017 under the name ETHLend, Aave (AAVE) is one of the original DeFi platforms on the market. Aave is a decentralized liquidity platform that allows borrowing cryptocurrencies and earning rewards on deposits. It brings lenders and borrowers together in a decentralized space to allow for an equal opportunity loan system. You can also earn rewards and discounts by staking AAVE tokens on the Aave DeFi platform.
Meet Avalanche (AVAX)
Avalanche (AVAX) is marketing itself as the “fastest smart contracts platform in the blockchain industry” while also solidifying its place in the burgeoning NFT space and connecting with other Blockchain projects such as SushiSwap (SUSHI), Chainlink (LINK). The project positions itself as a direct competitor to Ethereum due to its ability to provide cheaper transactions in a fraction of the time. Avalanche recently raised $230 million in funding to support DeFi initiatives, making it an attractive place for DeFi projects to set up shop.
Next is Cardano, one of the Defi altcoin giants.
Cardano (ADA), one of the largest Blockchain projects in the world, is sometimes referred to as the “Green Blockchain” due to its impressive energy usage reports and PoS protocol. Cardano announced last month that it has received ecosystem support from its recent $100 million investment in decentralized finance, NFTs, and blockchain education.
An oracle platform: Chainlink (LINK)
Chainlink (LINK) is a decentralized oracle service that aims to connect smart contracts with real-world data using Oracle technology. Chainlink recently announced the release of a Programmable Token Bridge that will allow new communication between DeFi Blockchains. This will help DeFi properly scale and avoid the bottlenecks that have hindered previous generation Blockchain projects.
Cross-chain interoperability: Polkadot (DOT)
Polkadot (DOT) facilitates an internet where independent Blockchains can reliably exchange information and transactions through the Polkadot relay chain. This makes Polkadot and the projects that choose to build on Polkadot much faster and more scalable than Ethereum’s current offering. It serves as a foundation for DeFi projects, helping the growth and potential of the network as a whole.
Decentralized stablecoin platform: Terra Luna (LUNA)
Terra Luna (LUNA) is a next-generation smart contract platform that combines decentralized finance with the concept of stablecoins. Its platform supports stablecoins offering instant payments, low fees, and seamless cross-border exchange. Luna acts as the floating backbone that keeps its stablecoin sibling, Terra, balanced and grounded. Adding DeFi’s rising popularity to the serious attention stablecoins are receiving – from consumers and governments alike – makes LUNA a place to watch.
Fastest Ethereum Layer 2 solution: Polygon (MATIC)
Polygon (MATIC) is one of the best adopted and fastest growing Ethereum Layer 2 scaling solutions and decentralized application ecosystems. It has features such as interoperability, scalability, and security. Basically, Polygon adds several traffic lanes to the heavily traveled Ethereum Layer 1 highway. Most DeFi projects are currently hosted on Ethereum Blockchan. Therefore, less congestion on Ethereum means faster speeds and more benefits for the DeFi ecosystem.
DeFi altcoin Solana (SOL)
Solana (SOL) revolutionizes consensus mechanisms with its proof-of-history (PoH) concept. This means that instead of mining or staking on the platform to verify transactions, all transactions are verified with a blockchain-inspired timestamp. Solana is known as the main competitor of Ethereum because it provides high speeds while still a Tier 1 platform meaning it does not need any assistance from another platform to perform these fast transactions.
Synthetix (SNX) from decentralized exchanges
Synthetix (SNX), a fast-growing decentralized exchange, allows crypto to be traded for stocks, currencies, commodities and other assets still dominated by the traditional financial institutions of Wall Street, London and Hong Kong. Its most unique feature is that it allows users to mint (minting) their own synthetic assets called “synths”, allowing them to access fiat, derivatives, cryptocurrencies and different asset classes. Examples include Bitcoin, euro, USD, Tesla stocks, gold, etc. It means users can take a position on the price of an asset without having to hold the actual asset making Synthetix one of the most popular DeFi products available.
Decentralized exchange giant: Uniswap (UNI)
Uniswap (UNI) is a decentralized exchange that allows users to buy and provide liquidity directly from crypto wallets at minimal cost. Its AMM (automatic market maker) provides solid traffic on its platform and plenty of liquidity for fast trading. Due to its popularity, Uniswap’s native token UNI can be found on investment platforms outside the DeFi network such as Voyager.
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