The digital currency 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 year, 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.
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.
NMX Token is the native utility digital asset of the Nominex cryptocurrency exchange. The trading platform is renowned for many innovative product offerings including the merger of both centralized and decentralized exchange features on one platform. The NMX token has further made the platform a delight of DeFi enthusiasts based on the advanced farming capabilities designed around it.
Nominex is the first cryptocurrency exchange to debut a utility token and a corresponding utility farming. Utility farming allows trading with a 100% discount, giving the platform users the maximum income from the affiliate program. Nominex also has a partnership with the world’s largest cryptocurrency exchange, Binance through the Binance brokerage program. Via this program, users will be able to gain access to a number of Binance features while being able to trade on Nominex for free. Additionally, the user will be able to constantly farm NMX.
The Binance Broker Program (BBP) is arguably an offer that will compound the utility of the NMX token as users gain access to the world’s largest cryptocurrency exchange by trading volume. The plans to roll out the full functionality of the BBP will take place in phases, with phase 1 featuring the immediate integration of both Binance and Nominex exchanges respectively. Subsequent functionalities will be rolled out as soon as they are ready, and besides the addition of more trading pairs, new features will be unveiled every month.
The BBP is also going to boost the price growth of the Nominex (NMX) token as it has generally trailed the downtrend as ushered in by an encompassing market correction that began back in May. NMX is billed to retest its most bullish price highs with the rollout of the BBP program. Beyond the BBP, other programs including the affiliate programs through which users can earn passive incomes in NMX tokens are also core attraction points to help grow the valuation of the tokens in the near future.
Above all, the Nominex exchanges are easily accessible mobile applications that are featured on Google Play Store and the Apple App Store. The applications permit one-click farming, atop a host of accessibility features designed to promote user experience.
The Nominex Token: Performance and Future Projections
The NMX token was launched as a BEP-20 token in February 2021. The acceptance of the NMX token is made visible in its performance statistics from inception. Today, there are as many as 11,000 NMX token holders, with more than $12 million in Total Value Locked (TVL) in the NMX/USDT liquidity pool. Thus far, the Nominex liquidity pools have increased the farming profit by about 500% with over 10,000 NMX tokens being paid out daily.
Per price action, Nominex has largely stayed resilient amidst the insistent price flash crashes thus far this year. While currently changing hands at $2.41, the token is currently trading at a 131.9% increment from its All-Time Low (ATL) of $1.04. The current performance of the token is, however, not a reflection of what the token is worth. The growing list of the Nominex platform’s utilities has positioned its native token as one of the most undervalued tokens in the DeFi ecosystem at present.
The hidden potential in the NMX token has placed it as one of the must-have DeFi coins this year. A bull run is being forecasted by many market experts before the end of the year, and atop this, the NMX token will not just break past its previous All-Time High above $8, it will make this price level good support in search of new price discoveries in the mid to long term.
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
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.
Origin Protocol (OGN)
On top of the increasing switch toward usability by decentralized protocols, the Origin Protocol is building a technology that is on track to serve millions of users around the world today. The Origin Protocol is a network that allows market participants to share goods and services through peer-to-peer (P2P) networks. The platform aims to create an extensive online marketplace that leverages the Ethereum blockchain and Interplanetary File System (IPFS) to eliminate the need for middlemen.
Origin Protocol has been around for a while, however, the growing embrace of utility by many users today has positioned its native token, the OGN as a ripe asset to be stacked by investors across the board. The token has a circulating supply of 351,815,555 OGN, unlike the billions from competing protocols. The coin is currently trading at $1.08, down 68.02% from its ATH of $3.39, set back in April this year.
With enough room for growth, the broad functionalities of the Origin Protocol revolve around Non-Fungible Tokens (NFT) as well as the broad use case of the Origin Dollar stablecoin amongst others. The Origin Protocol also has DeFi offerings such as staking all of which make it a one-stop protocol for enthusiastic investors.
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.
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 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.
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.
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.