5 best DeFi cryptos that could gain popularity in Q4 2021

We are about to enter the fourth quarter of this 
year and despite some ups and downs in 2021,   one sector that stood out this year was 
the decentralized finance (DeFi) sector. The DeFi industry caught major attention in the 
second half of 2020 and ever since then, it has   captured millions of users looking for innovative 
financial services in a decentralized context. The DeFi industry reportedly has US$ 100 
billion locked in various blockchain protocols   that offer decentralized financial services.   Even the blockchain-based gaming and 
non-fungible tokens (NFTs) are under   the DeFi infrastructure and the rise in these two 
spaces is contributing to this sector's growth. Before we progress to Q4 2021, let's 
look at the top five DeFi projects: 1.

Synthetix

It is a liquidity protocol for derivatives 
and acts as a backbone for derivatives   trading in a decentralized finance infrastructure. 
The Synthetix protocol is based on the Ethereum   blockchain and allows users to make synthetic 
representations of real-world assets as tokens. The tokens minted as synthetic representations 
can be pegged to the value of the asset. 2. Ren

This open protocol allows its users to access 
inter-blockchain liquidity for decentralized   applications. This means that the users of the 
Ren protocol can transfer all kinds of tokens   between any blockchain, and it does not create 
synthetic or wrapped tokens in the process. Ren can transfer liquidity to any 
ecosystem with existing smart contracts   and does not need synthetic representations. 3. Maker

One of the earliest DeFi projects, the Maker 
ecosystem was started with a vision to build a   variety of decentralized financial products on 
blockchains that are smart contracts enabled. This project is based on the Ethereum blockchain   and it comprises a decentralized organization 
called MakerDAO and also Maker Protocol,   a software platform to enable users to 
issue and manage a stablecoin named DAI.

4. Chainlink

This decentralized blockchain oracle network was 
built on the Ethereum blockchain by a community of   researchers, developers, and users for the public 
good and benefit of the blockchain ecosystem. Many decentralized applications need oracles 
to interact with a wide variety of data   and Chainlink is believed to be one 
of the leading providers of oracles. 5. Fantom

This blockchain platform is highly 
scalable for DeFi, decentralized   and enterprise applications. It aims 
to solve problems associated with   smart contract platforms and helps 
in increasing the transaction speed.

The native FTM token of this platform acts 
as a backbone for transactions and allows   staking activities and fee collection. The FTM 
token is based on the proof-of-staking concept,   and it can be used for user rewards as well.

Bottom line Decentralized financial services are expected 
to rival and perhaps beat traditional financial   services in the future. DeFi services don’t 
require a need for an intermediary and that   could be a reason why people will likely 
prefer DeFi projects in the future.

.

You May Also Like