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Top 5 DeFi Tokens 2022 (by Market Cap)

Top 5 DeFi Tokens of 2022

What are DEFI coins?

DeFi is the abbreviation for Decentralized Finance. It is an emerging technology, particularly to finance, which is based on a secure distributed ledger. Yes, much similar to what crypto assets use. The system is set in place to negate the involvement of any third parties like banks and financial institutions in any financial transactions. 

The total value of the DeFi market is at $50 billion with over a thousand coins being traded within the DeFi sector! This guide is to take a quick dive into the top DeFi coins available in the market.

Also Read: Which financial system has better potential?

Name Dai Avalanche Wrapped Bitcoin UniSwap Chainlink
Launch Date 2019 2020 2019 2018 2017
Founder Rune Christensen Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin BitGo, Kyber Network, and Ren. Hayden Adams Sergey Nazarov
Blockchain Protocol Ethereum  X-Chain, C-Chain and P-Chain Ethereum  Ethereum Ethereum
Native Token DAI AVAX WBTC UNI LINK
Token Type ERC-20  Low Cost Token ERC-20  Governance Token ERC 677 
Market Cap $7,283,004,650 $7,191,875,578 $5,590,887,235 $5,150,836,379.34 $3,363,441,342
Circulating Supply 7.28B DAI 283,886,886.59 AVAX 236,982.08 WBTC 734,135,450.75 UNI 467,099,970.53 LINK
Max Supply NA 720,000,000 NA 1,000,000,000 1,000,000,000
Consensus Method Proof of Work Proof of Stake Proof of Work Proof of Work Proof of Work

The Overall Top DeFi Coin: DAI (Dai)

One of the top DeFi coins with the highest market capitalization, DAI is a stablecoin that is built on the Ethereum blockchain. The maintenance and the issuance of the DAI tokens are taken care of by Maker Protocol and the MakerDAO decentralized autonomous organization. The value of the DAI tokens are soft0pegged to the US Dollar. The token is collateralized when other crypto tokens are deposited in the smart contract platform when more DAI tokens are minted. 

The most interesting part of the DAI ecosystem is that it was not created by a single person or organization. Rather, the DAI ecosystem was created by the development of the software that powers it. While the software is creating the ecosystem, the issuance of new DAI tokens is governed by the MakerDAO and Maker Protocol. 

Being soft-pegged to the US Dollar, DAI works differently than the USDT or BUSD tokens. While the Terra tokens are backed by traditional assets such as cash, corporate bonds, U.S. treasuries, and commercial papers, DAI tokens are generated when users deposit crypto-assets into Maker Vaults on the Maker Protocol. One other advantage of the Dai tokens is that it is not managed by any private company but by a decentralized autonomous organization that uses a software protocol. This results in all instances of issuance and burning of the DAI tokens being managed and publicly recorded by Ethereum-powered self-enforcing smart contracts. This whole system helps in making the entire system more transparent and less prone to corruption.

Also Read: Top 10 Crypto to Invest

Current Price % Change in Price (30 days) TVL
$1 NA NA

*All values are as of 22July, 2022.

Check out latest DAI INR Price, Charts, and Data.

The new top upcoming DeFi Coin: Avalanche(AVAX)

Avalanche is a layer 1 blockchain protocol that behaves as a platform for decentralized applications (DApps) as well as custom blockchain networks. The main competitor of the avalanche cryptocurrency is Ethereum. The native token of the avalanche blockchain system is AVAX. The primary goal of this blockchain protocol is to dethrone Ethereum from the seat of the most popular blockchain for smart contracts. 

The advantage of AVAX over Ethereum is its high transaction output without any compromise with its scalability. It can process up to 6500 transactions every second without affecting its scalability. The unique architecture of Avalanche makes it possible. There are three different and individual blockchains each having a distinct purpose. The X-chain, P-chain, and C-chain have distinct use cases as well as different consensus mechanisms based on their use cases. 

Avalanche has been working on developing its DApps and DeFi ecosystem after its mainnet launch in 2020. Some of the projects that have integrated with Avalanche are TrueUSD and SushiSwap.

Current Price % Change in Price (30 days) TVL
$25.35 0.32 NA

*All values are as of 22 July, 2022.

Check out latest AVAX INR Price, Charts, and Data.

Top DeFi Coin that is also an ERC-20 token: WBTC (Wrapped Bitcoin)

In simple words, Wrapped Bitcoin is a tokenized version of Bitcoin that runs on Ethereum Blockchain. Being an ERC-20 token, WBTC is compatible with the ETH blockchain, thus, allowing it to be fully integrated into its ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other ERC-20-enabled decentralized finance (DeFi) applications

Being the first crypto asset to be introduced, Bitcoin has a huge pool of investors but the blockchain that runs Bitcoin is relatively basic according to the modern standard. On the other hand, Ethereum was built keeping in mind the various requirements that Bitcoin did not provide. It basically gave way for the DeFi genre into the crypto world. Ethereum and all of its products are derived from it offering its users many advanced financial instruments such as lending and insurance, which do not rely on trusted intermediaries.

Wrapped BTC also helps any exchanges, wallets and payment services that work with Ethereum as they do not have to run two separate nodes, i.e. BTC and ETH. all they have to do is run one single ETH node with WBTC operations!

Also Read: WHAT ARE THE PROPERTIES OF ERC-20 TOKENS?

Fun Fact: Because WBTC is always backed by Bitcoin at a 1:1 ratio, the number of WBTC tokens in circulation is directly dependent on the amount of Bitcoin reserves in the WBTC network.

Current Price % Change in Price (30 days) TVL
$23,618.92 0.14 NA

*All values are as of 22 July, 2022.

Check out latest WBTC INR Price, Charts, and Data.

Top DeFi Project: UNI (UniSwap)

As per expert analysts, one of the Top DeFi Projects of 2022 is UniSwap. Founded in 2018, Uniswap (UNI) is one of the most popular decentralized trading protocols that have become popular within the crypto space for facilitating the automated trading of DeFi tokens. It is also an automated market maker, also known as AMM, and has gained considerable attention since its inception. It gained a lot of traction, especially in the year 2021, when the crypto space saw a boom in the DeFi category.

The Uniswap ecosystem aims to keep the trading of tokens automated and completely open to anyone who is holding the tokens. They are also dedicated to improving the efficiency of trading versus that of traditional exchanges. UNI creates more efficiency in trading by solving liquidity issues with automated solutions. This helps in avoiding the problems which plagued the first decentralized exchanges.

Moving one step further in 2020, Uniswap created and awarded its own governance token, UNI, to its previous users. This was done in order to enhance the ability and the profitability of the users to shape its future. Uniswap aims to resolve issues that plagued platforms such as EtherDelta. It limits the risks as well as reduces costs for all parties by automating the procedure of market-making. This mechanism also does away with the identity requirements for users and lets anyone create a liquidity pool for any pair of tokens. 

Uniswap also launched a second version in November 2018 that introduced new features like ERC-20 pairs, flash swaps, price oracles, etc. The latest version, Uniswap V3 was launched in May 2021 and has greater capital efficiency for liquidity providers. The infrastructure for this version is also better and enhanced. 

While the UNI asset has seen a market correction of its value, from $43 to $7, the Uniswap community has a strong backing for their asset that provides easy liquidity to facilitate the P2P transactions in a completely decentralized manner.

Also Read: What is UniSwap?

Current Price % Change in Price (30 days) TVL
$7.28 0.50 $5,492,631,248

*All values are as of 18 July, 2022.

Check out latest UNI INR Price, Charts, and Data.

Top DeFi coin using Smart Contracts: LINK (Chainlink)

Chainlink was founded in the year 2017 and served as an abstraction layer for enabling smart contracts connected universally. Chainlink is an oracle network that is decentralized in nature and provides the required stream of data to the smart contracts running on various blockchain platforms. The primary goal of the blockchain system is to make smart contracts even more powerful by helping them draw data inputs gathered from other sources. 

The type of data varies from supply chain management to price feeds, smart sensor temperature data inputs, scores in a cricket match, etc. Everything and anything relevant to the purpose of blockchain. There is no native blockchain for chainlink. Rather it integrates along with various blockchains providing relevant information. It also acts as an oracle aggregator apart from behaving as an oracle. The data from several data providers are purchased by chainlink which is then streamed to various blockchains accordingly. 

The data providers ensure that the data is authentic and up to date because the display of inaccurate data will cause them a negative reputation and thus be removed from the network. Decentralized applications (DApps) that run on the Ethereum network are also empowered by Chainlink. It accesses data for these DApps and bridges the gap between secure blockchain environments and the real world. This makes the entire ecosystem faster and smarter. 

Current Price % Change in Price (30 days) TVL
$7.16 -0.05 NA

*All values are as of 22 July, 20

Check out latest LINK INR Price, Charts, and Data.

Where to buy DeFI Tokens in India?

With newer DeFi projects coming up every week, we have discussed the top 5 DeFi tokens of 2022 as per expert analysis. Here are the steps following which one can buy DeFi tokens in India.


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