Top 5 DeFi Tokens You Should Invest Before The End of 2022

The cryptocurrency ecosystem has continued on its upward evolution path, a trend that has seen the development of key offshoots of the industry, including decentralized finance (DeFi). Over the past two years, DeFi protocols have gained increased popularity in part for what they bring to the table, that is, offerings that take the competition directly to banks and financial institutions. These offerings include savings with the ability to earn interest, lending, and other customized products through which users can earn passive incomes. The latter offerings include but are not limited to farming, liquidity provision, and staking.

Top DeFi Protocol Tokens

At the heart of every DeFi platform is a utility token. These tokens serve a wide variety of functions which depends a great deal on the platform’s design. Some of the functions a DeFi token may serve include payment of fees, and for the payout of rewards respectively. Based on their nature, and the impact of their utility, chances are that the prices and valuation of DeFi tokens grow over time. Many DeFi tokens are currently showing the propensity to grow or continue on their growth path for the rest of this year, hence the need for this article. Below, we would look into the top 5 DeFi tokens everyone should invest in before the year runs out.

1. AAVE ($AAVE)

The leader among DeFi Protocols, AAVE is the native token of AAVE protocol. It helps crypto users to lend and borrow various cryptocurrencies. AAVE is also a leader in crypto space when it comes to innovation and AAVE is constantly releasing updates to make protocol more safer and secure.

Will AAVE Price Go Up?

The recent crypto crash has led to huge losses for many crypto investors both institution and retail. But, this has also provided very good entry points for many top projects and AAVE is one of them. AAVE token price is currently down by nearly 90% from its all time high of $666. The risk to reward ratio for AAVE is promising as there is limited downside possible now.

Another important factor, total value locked (TVL) for AAVE is showing stability and as per DappRadar, currently stands at $6.34 Billion. The highest TVL is in Ethereum, followed by Polygon and Avalanche. The AAVE price at the time of writing is $91.2.

2. Fantom (FTM)

Fantom is a DeFi protocol whose underlying technology is tilted to solving the challenge of scalability and transaction speed. Fantom is a Directed Acyclic Graph (DAG) smart contract platform providing decentralized finance (DeFi) services to developers using its bespoke consensus algorithm. The platform and its native token, the FTM, have been able to reduce typical transaction speed to 2 seconds, according to the project developers.

The Fantom ecosystem is growing at a very fast pace, and so is the utility of the FTM token. For investors who rely on broad applications running atop a particular DeFi or the partnerships the protocol has secured thus far, the Fantom will be a good choice to pitch tent with. Amongst the notable integrations, the protocol has recorded include; those with Band Protocol, Chainlink, Chekkit, and Frontier to mention a few 

Will Fantom (FTM) Price Rise? 

Atop a total supply of 3.175 billion tokens, the FTM token ranks amongst the most innovative DeFi tokens with a reasonably low market cap that can permit increased growth shortly. Currently changing hands at $1.37, Fantom is on track to trail its big-name DeFi counterparts including Polkadot (DOT), Solana (SOL), and Terra (LUNA) amongst others in terms of potential price growth over time.

FTM price is down nearly 90% from its all time high of $3.48. One among the huge successes before the crypto crash, FTM has lot of upside potential. The current price levels provide good entry opportunities for crypto investors. The FTM price at the time of writing is $0.33.

3. Curve DAO Token (CRV)

Curve DAO token aka CRV is a new innovation in DeFi. a decentralized exchange for Stablecoins, it reduces risk of holding non-volatile stablecoins. Curve has deep penetration in DeFi space from yield farming, liquidity mining and even earn higher interest.

The advantage of Curve DAO over other Automated Market Makers (AMM) is that provides a very low volatility to liquidity providers with stablecoins instead of highly volatile cryptocurrencies. Curve token operates using voting mechanism via Decentralized Autonomous Organization (DAO) allowing investors to vote using their CRV tokens. The liquidity providers also receive CRV tokens for staking the stablecoins.

Will CRV Price Break All Time high Soon?

Curve DAO (CRV) token was among tokens which led the recovery from bottom in recent crypto crash and is up by 280% from its all time low at $0.33. The CRV price is down by 80% from its all time high at time of writing and provides a good entry point for long term investors.

4. COTI (COTI) 

COTI is amongst the few tokens in today’s DeFi world that has robust tokenomics that supports its potential growth drives. Additionally, COTI comes off as one of the first enterprise-grade fintech platforms that empower organizations to build their payment solutions as well as digitize any currency to save time as well as money.

Its innovative product offering is beginning to gain ground amongst several merchants, governments, payment DApps, and stablecoin issuers. The COTI token powers the protocol, and it is secured based on the DAG protocol and their Trustchain algorithm. The price of COTI currently pegged at $0.4401 makes it an affordable token in the bag of an investor who wants at least a 3x boost in the coming months.

How Soon Will COTI Price Recover?

While there is no guarantee the growth path will be 100% smooth without turmoil, the COTI token has the inherent use cases which when discovered by more people in the mainstream will result in a positive growth push in the long run.

The COTI price is down by 85% from its all time high of $0.68 and presents a good buy opportunity.

5. Reef (REEF)

The Reef protocol is a Decentralized Finance platform built atop the Polkadot blockchain with the sole aim of delivering cross-chain trading. Reef is a yield engine and a smart liquidity aggregator that is currently making its mark through automation. The creation of a product that helps users bypass the difficulty associated with mainstream centralized exchanges as well as the lack of liquidity on the decentralized counterparts has positioned Reef at the forefront of innovation, such as is enticing to investors.

Will Reef Price Recover?

The core operations of the Reef platform are built around the REEF token. As the protocol’s adoption grows, its current price of $0.02308 is poised to be a springboard for new highs, to the benefit of the token holders.

Conclusion

DeFi is a financial innovation that has come to stay. The protocol’s underlying tokens and the utility that is built around them will always be a factor for growth. While many tokens around today have their respective uniqueness, history has shown that the growth of a protocol is directly proportional to its underlying fundamentals as it relates to products, ecosystem, and tokenomics.

Amongst the enticing projects with core investment prospects today, these DeFi tokens have unique potentials to chart increased growth in the near to long term. While this is not a piece of financial advice, users can use some of the factors highlighted here to judge DeFi projects with the tendencies to make impressive leaps in the near future.