![]() ![]() Read on to learn about the five largest DeFi coins. If you are considering investing in the sector, you could start with watching the top DeFi tokens by market capitalisation. The total DeFi token market cap has exceeded $100bn, out of a total cryptocurrency market cap of $2.25trn, data from CoinMarketCap showed on 21 December. ![]() With transaction fees on the Ethereum blockchain, in some cases, becoming prohibitively high, a number of the most promising DeFi coins have launched on more than one blockchain. Terra, Binance Smart Chain (BSC), Avalanche and Solana have also emerged as smart contract blockchains, with more than $10bn of TVL each. As well as the blockchain’s native ether cryptocurrency, other coins run on the blockchain to provide DeFi apps. By enabling the tokenisation of real-world assets, stocks, real estate, art and other physical assets can also be traded on a blockchain.Įthereum is by far the largest smart contract-enabled blockchain, accounting for more than $153bn of TVL. A smart contract is code stored on the blockchain that executes transactions automatically without a centralised intermediary, enabling fast processing speeds and lower fees than the traditional banking system.Īs consultants Ernst and Young wrote in a recent report: “If you apply this decentralised peer-to-peer model on a global basis to the various forms of financial transactions that require an intermediary today (for example, collateralised lending, interest-bearing deposits or investment portfolio management), the potential impacts to the existing global financial system and its intermediaries become significant.”ĭeFi has the potential to change the way individuals manage their finances, as well as how businesses and other institutions interact. DeFi challenges traditional finance sectorĭeFi refers to financial applications, services and protocols built on public blockchains running smart contracts. It reached $259bn on 1 December, up from $15bn a year ago, according to DeFi Llama.Īre you interested in investing in cryptocurrency coins that are leading the way in DeFi? Let’s take a closer look at the sector and some of the top DeFi tokens to watch. The total value locked (TVL) on blockchains is a popular indicator for the size of the DeFi market. The sector has taken off in 2021 as cryptocurrency adoption has grown. Top 5 DeFi tokens by market capitalisation – Photo: Shutterstockĭecentralised finance (DeFi) emerged in 2020 as blockchain developers launched new applications and services that enable users to borrow and earn using their cryptocurrency coins.
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