The decentralised finance (DeFi) space is as vibrant as ever, with total funds locked in DeFi protocols marking a sharp rise from last week. Savvy investors are now looking for the best DeFi to invest in for high profits this February.
We have reviewed some of the best DeFi coins and the factors that could drive them to profitability over time.
1. Lucky Block (LBLOCK)
Even though it isn’t necessarily a DeFi token, LBLOCK kicks off our list of the best new coins on Pancakeswap to invest in, which is yet to be listed on larger exchanges.
LBLOCK powers Lucky Block – a lottery and gaming platform looking to revolutionise the lottery space entirely. Lucky Block uses blockchain technology and smart contracts to improve different aspects of lottery operations and ensure that everyone can access its lottery platform regardless of where they are.
Lucky Block conducted the initial sale of its LBLOCK token in January, raising almost $7 million. Within two days of the launch, LBLOCK’s combined listing on Coingecko and CoinMarketCap saw it valued at an impressive $140 million.
The prospects for LBLOCK are massive. There are rumours that the asset will be listed soon on top exchanges like Binance and FTX, and the Lucky Block developers are working on their app – which is slated to launch in March.
At the time of writing LBLOCK is trading at a discount, having restested its daily support level at $0.0010 where it then bounced 30% to $0.0013.
Pancakeswap is a popular exchange for finding lesser known cryptos and DeFi tokens with a smaller marketcap, where the potential ROI gains are larger and price can see a rally in anticipation of being listed on larger crypto exchanges like Binance.
2. QuickSwap (QUICK)
QuickSwap is a top-ranked decentralised exchange (DEX) built on the Polygon network. The exchange is looking to bridge the gap between centralised and decentralised finance, and it has a simple interface that mirrors that of Uniswap.
With QuickSwap, users add token pairs to liquidity pools and earn transaction fees paid by others who use their pools to swap their tokens. QuickSwap is especially popular for its low fees and high speed, and while it is built on Polygon, it is also compatible with the Ethereum blockchain.
QUICK has been on an impressive run recently. Last month, QuickSwap partnered with CelciusX – the DeFi arm of the Celsius financial services platform. This partnership should help QuickSwap create wrapped versions of some popular coins like ADA and DOGE.
QuickSwap has also recently launched some attractive yields for providers of stablecoin-stablecoin liquidity pairs. These pools offer users a chance to earn decent yields while also cutting down on the impermanent loss risk.
With impressive technicals and many updates coming to the QuickSwap interface, we believe QUICK should be one of the best DeFi to invest in at the moment.
3. Aave (AAVE)
Aave is one of the most popular lending protocols in the DeFi space. The platform was one of the shining stars when DeFi broke into the mainstream in 2020, and it has continued to lead the market since then.
Functioning as a decentralised lending system, Aave allows users to borrow, lend, and earn interest on their coins without dealing with intermediaries. It runs on the Ethereum blockchain, and it manages assets using smart contracts and its distributed network of computers.
AAVE – the platform’s native token – manages the software. Users can purchase it to vote on rule changes for the software.
There have been different bullish signs for AAVE right now, thanks in no small part to developments coming to Aave itself. Last month, the platform launched Aave Arc – a permissioned lending and liquidity service that will help institutions participate in regulatory-compliant DeFi services. Aave Arc already has 30 institutional partners, and it is looking to add more.
Aave has also recently passed its first cross-chain governance proposal. This proposal supports contracts bridging to networks like Polygon and Arbitrum, and it is the first step towards multi-chain compatibility for Aave.
AAVE is a DeFi blue chip. As the market continues to grow and Aave expands, the coin’s price should also skyrocket.
4. Kyber Network (KNC)
Kyber Network is a multi-chain decentralised exchange and aggregation platform that hopes to offer DeFi protocols and their users good liquidity pools. By cutting out intermediaries from the liquidity process, Kyber Network optimises speed and liquidity.
KNC serves as the platform token for Kyber Network. Holders can participate in the Kyber Network’s governance through Kyber DAO – the platform’s decentralised autonomous organisation. They can stake their KNC and vote on the network’s fee model, rates, and other proposals.
The growth in the Kyber Network is fueling KNC to impressive highs. Last month, the network launched Kyber 3.0 – an upgrade that included a rebrand of the network’s exchange and integration with six blockchains, including Ethereum, Binance Smart Chain, and Polygon.
KyberSwap – the network’s decentralised exchange – has also been integrating pools from several other DEXs – including ShibaSwap, EmpirDEX, Morpheus, DeFiSwap, and more.
Currently, the KyberSwap protocol supports over 40 DEXs and 31,000 liquidity pools across six blockchains. These developments show that Kyber Network is currently one of the best Defi to invest in.
5. Chainlink (LINK)
Chainlink is perhaps the most popular blockchain oracle. The platform focuses on offering off-chain data to blockchains and smart contracts – especially in fields like DeFi and non-fungible tokens (NFTs).
As one of the most valuable cryptocurrencies in the market, Chainlink’s LINK token is in massive demand. The asset is up 0.24% in the past 24 hours, beating the broader market’s rise of 0.16%.
On the fundamental front, we expect demand for LINK to continue to rise as the market keeps rising. Recently, 21Shares AG – a Swiss product issuer and investment advisor – announced that it had listed three new crypto exchange-traded products on the BX Swiss exchange. One of the products was denominated in LINK, with AAVE and Uniswap’s UNI token denominating the other two.
21Shares outlined that Chainlink is one of the most sophisticated networks in the crypto space, with significant use cases across DeFi, NFTs, and even blockchain gaming. As these fields continue to grow, LINK should see bigger gains and is one of the best Defi to invest in.