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Top 5 Decentralized Finance (DeFi) Tokens

BitForex Editor
Sep 07, 2020

The increased acceptance of cryptocurrencies is making it a more robust ecosystem. The aim is to ensure everyone has access to global payments from the comfort of their homes. Decentralized Finance, as we all have come to see, combines both cryptocurrencies and finance allowing for people to carry out financial transactions making use of tokens.

We live in a world where there are a lot of financial activities going on daily. Across several financial platforms, people carry out automated transactions, request loans, open savings, current, and investment accounts. All these are done by a centralized structure and does not come without its challenges. Now, imagine a world where there are decentralized alternatives to all of these and you don't have to walk into any building to carry out transactions.

With your smartphone and internet connection, you can make and receive payments from anywhere in the world and carry out any financial transactions. That is the world Decentralized Finance (DeFi) aims at creating for everyone.

Smart contract blockchain is the leading solution that DeFi works with. With the use of smart contracts, several programs can be carried out on the blockchain with conditions to be met. When these conditions are met, the blockchain automatically executes the programs. The smart contract makes it possible for other developers to design better functionalities and actions other than transacting in cryptocurrencies alone. Functionalities and protocols that are built on the smart contract are what we refer to as decentralized apps (dapps) today.

DeFi has made it possible for many users to earn interest on their money without referencing a centralized party. This has caused several deliberations within and outside the cryptocurrency ecosystem especially in places with heavy reliance on dapps. DeFi coins are largely talked about on the news, behind the scenes, and have been considered by both private individuals and financial institutions. As the cryptocurrency space is experiencing a great shift, there may never be an end to these deliberations.

The decentralized Finance (DeFi) ecosystem is fast growing in numbers and acceptance. With the community continually assuring users that Ethereum is locked in DeFi, decentralized apps have grown across the globe. Billions of ETH are said to be locked in DeFi and expected to grow massively in the coming years. 

While the general trend among crypto traders is to continually keep track of the rise and fall of cryptocurrencies daily, DeFi is offering an entirely different model. With DeFi coins, users can be informed on changing and favorable market trends, profits possibilities for investors, and the latest Initial Coin Offerings (ICOs). With DeFi, the world is not just going to have access to payments from the comfort of their homes alone, but can define the what and how of it.

Talking about DeFi tokens, let us quickly examine the top 5 Decentralized Tokens and their market performance.

Chainlink - LINK

Chainlink is a network that provides secure inputs and outputs that are needed to execute complex smart contracts. This network connects users with real-world data, events, and payment opportunities. The decentralized financial system of this network is capable of powering the strongest activities on the Ethereum Blockchain. The DeFi token of this network is the LINK. LINK is said to trade at about $15.50 - $16.75 depending on the changes that happen in the market. With LINK continually on the rise since last year, there is no denying the potential that exists in this platform. If there is a native DeFi token that should command your attention now, it is the LINK token.


UMA tokens are referred to as the first priceless token model built to minimize the need for oracles. These synthetic tokens are just like every other Ethereum-based token in the way they are traded. Token holders get a profit percentage based on their token stake when the contract comes to an end. The percentage earned by users is based on the performance of Ethereum against BTC in the market. Being the first priceless token model, this is one DeFi token worth your consideration. - YFI

Yearn Finance is a relatively successful decentralized network and the owner of the YFI tokens. This DeFi token has a very low supply because it just came into the cryptocurrency ecosystem recently. This token, though new, seems to be doing well on the market. When it was launched, it was about $1.115 but in two months or less, it increased to about $13.7. That's an amazing one, thanks to the quality of the Yearn Finance Network in allowing for ease of investment and transfer of funds making use of the YFI tokens.

Aave - LEND

LEND is the DeFi token of the Aave network - an open-source protocol that allows users to earn interest on every deposit made. The uniqueness of the Aave network is that users borrow assets needed for investment, make profits off their investments, and pay off borrowed assets. The official market cap of LEND as provided for on their official website is pegged at about $1,554,8225,5441. When LEND was launched in January 2020, it was about $0.009, but as of August, it had grown to $0.59 making it one of the leading DeFi tokens to invest in currently.

Synthetix Network Token - SNX

Synthetix Network Token is one of two tokens that is used by the Synthetix protocol. SNX is a primary token that is used mainly as collateral. Users who have the Synthetix assets provided for by the network can make use of this token as collateral to back their assets. Every trade that is carried on the Synthetix Network using SNX earns users a percentage fee. Since June 2020 when this token started trending upwards, it is yet to drop. With a total market cap of over 500 million, it is currently valued at about $5.8.

Years back when the idea of digital currency came up, its major selling point was decentralization. This has not only to be achieved through DeFi tokens but has increased the interest of users in digital currency across the globe. There is no certainty that the upward trend of the above-listed tokens will continue, but DeFi tokens no doubt, have very bright future predictions that are worth tapping into.

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