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Top 10 DeFi Tokens & Trends To Watch Out In 2020
Explore the DeFi Tokens and Trends of 2020,2021
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Defi tokens 2020 2021
Introduction : 2020 Is the Year Of DeFi Tokens
The term DeFi came into limelight after the Binance announcement on its listing about a DeFi Network Token “KAVA”. Later, many started to search for What is KAVA and what is DeFi. Now, we are in the middle of 2020. In just one financial year, the term DeFi started to make a huge sense all over the finance network as well as blockchain networks. Industry leaders predicted that DeFi is going to be the next financial tool that could bring an upgraded FinTech network. In proof of the experts prediction, many DeFi projects are starting to shine along with their promising DeFi Tokens. This article is going to explore you the trending DeFi tokens Of 2020, and how they are performing better than other digital assets like bitcoin.
What are DeFi tokens ?
Decentralized Finance, is an upgraded financial application, system or a network, which has been created to transform the entire FinTech network into decentralized as well as transparent. This can be achieved through the combination of blockchain tools, such as smart contract, dapps, and Tokens, DeFi tokens are mostly ethereum tokens, they may be asset pegged, fiat pegged, crypto pegged or whatever. DeFi tokens are end user entities which will act as a medium for users/ Traders/Customers or investors to take a vital part and experience the financial services in a newly created DeFi application.
If you really want to know more about the basics of DeFi ( Decentralized finance) then check out our older article : What Is Decentralized Finance ( DeFi )?
DeFi Token Trends 2020
There are a lot of DeFI projects, products, and services in the queue. But the most popular sector which gains attention through DeFi protocol is the “Borrowing and Lending Platforms”. The most promising DeFi As Defined by defipulse.com,
“DeFi is like smart money Legos along with smart contracts”.
While using Legos, we used to start with small bricks, then we could connect it with other bricks to build something new every time. Such a way that, by connecting together the components of DeFi( smart contracts, Dapps, and Tokens), we can create powerful new DeFi applications each time.
Often the DeFi network is being added with a new kind of DeFi platform and its relevant tokens, So here we are going to see the DeFi tokens which has gained attention in the first two Quarters of 2020. According to the DeFi Data Trackers Defirate
Source : DefiMarketCap
COMPOUND DAI - COMP Token
COMP token is an ERC 20 asset pegged token which runs on ethereum network. Created by COMPOUND- In defi terms compound is a market money or lending protocol. Users who have Compound Governance Token are authorized to vote for suggestions, debates, and implement the changes inside the network through the compound governance dashboard
If you supply or lend DAI tokens, (DAI is a stable coin) to compound, you will receive the relevant cDAI tokens as rewards, whereas the cDAI tokens will represent the DAI you have lended and the interest you have earned through lending. cDAI tokens are available to be used in other smart contracts too.
Recently Compound’s COMP token went live for trading, and it has overtaken one of the leading lending protocol Maker. COMP has become the largest defi token by market cap with the rising price of 60% in one day.
Market Cap : $637,686,274
Total Supply: 10,000,000 COMP
Explorers - etherscan.io, ethplorer.io
Maker - MKR
Maker is also a leading lending protocol, which was responsible for the creation of DAI - A stable coin. MKR Tokens also provides users to delegate votes for new changes, suggestions, inside the maker DAO network through Maker Voting Dashboard. Maker can be also known as Multi collateral DAI System, which allows users to create DAI by leveraging the assets or collateral approved by the maker governance team.
Market Cap : $437,680,595
Total Supply : 1,005,577 MKR
Explorers : etherscan.io, ethplorer.io, blockchair.com
0x Protocol - ZRX
It is a liquidity protocol used to provide liquidity services for various decentralized exchanges.
Creators : 0x.org
Market Cap : $282,789,023
Explorers : etherscan.io, ethplorer.io, blockchair.com
Total Supply: 1,000,000,000 ZRX
Kyber Network - KNC Token
KNC is the native token of Kyber.Network - A DEX platform, KNC will be burned by the collected fees from the exchange.
Market Cap: $327,511,105
Explorers : etherscan.io, ethplorer.io, blockchair.com
Total Supply: 210,623,056 KNC
Synthetix - SNX Token
It's a derivative protocol backed by its native token SNX. Recently Binance has listed SNX tokens for trading. To mint derivatives(Synths) users have to stake a minimum of 750% of Synths in the Value of SNX.
Creators : Synthetix.io
Market Cap : $387,277,440
Explorers : etherscan.io, ethplorer.io, blockchair.com
Total Supply: 190,075,446 SNX
Aave - LEND Token
Aave is also another leading lending protocol. Which is backed by its own DeFi token LEND. Whereas the LEND token Will receive value from borrowing and flash loans fees.
Creators : aave.com
Market Cap : $394,493,926
Explorers : etherscan.io, ethplorer.io
Total Supply: 1,299,999,942 LEND
UMA- UMA Token
UMA is also a derivative protocol backed by its native token UMA. This protocol is used for the creation of permissionless synthetix assets.
Creators : umaproject.org
Market Cap : $112,547,696
Explorers : etherscan.io, ethplorer.io
Total Supply: 100,224,817 UMA
REN Protocol - REN Token
Ren protocol acts as an interoperable bridge or medium to connect ethereum assets with RenVM. In order to become a validator, an user has to post 1,00,000 REN as a collateral that can become an eligibility to host a dark node.
Creators : renproject.io
Total Supply: 999,999,633 REN
Explorers : etherscan.io, ethplorer.io
Bancor - BNT Token
BNT is the native token of the DEX platform, Bancor. Here a part of fees collected from the exchange will be distributed to users who hold BNT tokens.
Market Cap - $104,088,086
Total Supply: 69,148,554 BNT
Explorers : etherscan.io, ethplorer.io, blockchair.com
Loopring - LRC Token
It is a 2 layer exchange protocol that can be used to optimize the throughput on ethereum with the available scalability solutions.
Creators: loopring.org
Marketcap :$148,734,528
Total Supply : 1,374,513,897 LRC
Explorers : etherscan.io, ethplorer.io
Final Thoughts
DeFi Tokens are creating a way for a new financial system that can bring decentralization by being away from centralized authorities. Promising and legit DeFi Tokens may help the Decentralized Finance System to grow further with promising DeFi blockchain projects.
Who We Are ?
We bitdeal, a reputed DeFi Development Company are concerned with the growth of DeFi platforms, and their Native Tokens, We support blockchain projects and businesses to create DeFi Tokens on ERC20 Standard. For any technical support we are ready to be in touch with you! Feel free to connect with Us!
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