5 Best DeFi Coins To Buy In 2021

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Coinrule

6 min readAug 20, 2021

Decentralised Finance (Defi) will disrupt the way you manage your funds, savings and investments. Wise investors have been funnelling money into coins and tokens linked to DeFi, igniting a parabolic growth starting since 2020. As months go by, the DeFi market keeps evolving. New products and projects emerge daily, and investors are continuously researching to spot the best DeFi coins to buy.

DeFi is a conglomerate of financial applications attached to blockchain technology. Banks use DeFi to offer their lenders and borrowers traditional financial services in private and more valuable ways. The benefit is that they get reported to a permanent digital blockchain ledger.

According to DeFi Pulse, the number of assets locked (TVL) in DeFi has a value of 53.87 billion and growing. Investors seem to gain more confidence in this new emerging space. They don’t want to miss out on the next leg up of the uptrend.

Below you will read about the five best DeFi coins to buy in 2021. They are trustworthy projects backed by experienced teams who consistently deliver working products with solid use cases.

Terra

Terra is a cryptocurrency project by Terraform Labs which has been under the spotlight recently. Terra project powers cryptocurrencies for start-ups and financial applications.

One of the main products that Terra powers is certainly UST. Currently, the most liquid and valuable algorithmic stable coins on the market. That represents a unique example of an interest-bearing crypto-asset tied to the value of the US Dollar.

Terraform Labs intends to use Terra’s blockchain and other linked cryptocurrencies to build a digital financial system that does not depend on significant banks and fintech application makers.

The coin’s value is tightly linked to the success of the applications that use the protocol, and so far, they are proving a great success. One of the most promising projects in the Terra ecosystem is Mirror, working on a decentralised platform for synthetic assets.

Orion

The main obstacle to the wide adoption of decentralised exchange has always been the lower liquidity, resulting in non-optimal price executions.

The general approach of all the most adopted decentralised exchanges has been to embrace the liquidity pooling system introduced by Uniswap in 2020. Orion took another path. It aggregates the liquidity of multiple crypto exchanges into a decentralised platform providing a single, noncustodial gateway into the whole digital asset market.

Using the Orion terminal, the trader can access deep liquidity with low transaction costs with the additional benefits of a permissionless environment.

Nevertheless, Orion protocol is not just an exchange, but it’s building a complete DeFi ecosystem. The Orion tokens are in use within the whole protocol, and there exist about 18 diverse revenue streams for all token holders. These revenue streams include a portion of the trading fees, interest on margin trading, and Orion’s lending program.

Quickswap

As the Polygon ecosystem boomed, becoming the most interesting Layer-2 solution for Ethereum to date, Quickswap emerged as one of the fastest-growing Dexes in the whole crypto space.

Quickswap is a Uniswap’s fork, which means that it carries most of the original codebase. That is a great advantage in terms of security and reliability. The main difference is that while Uniswap runs on the Ethereum network, Quickswap is a native app in the Polygon ecosystem. Polygon Network is currently offering quicker transactions at low fees.

Quickswap has a governance token that allows the holders to vote on this project. Token holders benefit from revenues coming from fees paid by traders for swapping coins using the liquidity pools.

The protocol currently locks over $1 billion in assets, and the average trading volume has been consistently above $100 million per day. That places the token in a significantly undervalued spot than similar decentralised exchanges, which have benefitted more from traders and investors’ confidence. You can read more about some stats that shows the growth potential for the project.

Quickswap may be the less known among the best DeFi coins to buy, yet it could also be the most promising one.

Thorchain

Thorchain could be a real game-changer for the whole crypto ecosystem in the future. As centralised exchanges enforce more restrictions to comply with local AML and KYC regulations, the use case for decentralised exchange will only strengthen.

With Thorchain, there is no need for third-party crypto custody, exchange outages, deposit, and withdrawal interruptions. The fact that Shapeshift chose this protocol to run its decentralised exchange is per-se a strong badge of recognition.

One of the main limitations of all decentralised exchanges is that they rely on their network, meaning traders need to move coins across bridges to overcome this. Thorchain solves this. It allows atomic swaps between different blockchains, with no need to move assets between networks and, most importantly, retaining at any time the custody of the assets.

Thanks to the innovative pooling mechanism, investors can also provide liquidity with no risk for impermanent loss, allowing relatively high and stable returns on assets like ETH and BTC by providing liquidity to the assets pool.

Long-term, Thorchain’s goal is to build a protocol for every DeFi, by adding complementary products like borrowing, lending, and synthetics services within multiple blockchains.

Yearn

DeFi has witnessed countless protocols araising and promising exceptional returns to investors. It becomes tricky for yield-hunters to choose the best option for their needs, weighting on security concerns and yield expectations.

Yearn is a group of protocols that run on the Ethereum blockchain. It enables users to optimise their yields on crypto-assets by lending and trading services. Yearn Finance is the governance token for Yearn.

Yearn’s supply is very limited and capped to only 36,666 YFI tokens. That could potentially cause a supply shortage that would push the price much higher.

Yearn and its suite of decentralised financial products can interest anyone who wishes to earn passive interest on their cryptocurrency assets without requiring a custodian or intermediary. Given the excellent reputation that the team has gathered so far, it would not be surprising to see more institutional adoption in the future.

Conclusion

Ultimately, the DeFi industry is continually growing and evolving. It’s mind-blowing how quickly the ecosystem passed from being an experiment by anonymous geeks to proving that it will likely play a significant role in finance’s future.

Although we may see it as a niche sector right now, you can expect broader market shares to adopt the decentralised applications in the future. Decentralised finance has the potential of altering the financial world any time now. However, it’s essential to know that this market is pretty new. There are still some risks involved. You should do your due diligence before investing in any of these platforms and understand them first.

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DISCLAIMER

I am not an analyst or investment advisor. Everything that I provide here site is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.