Top 5 decentralized financing projects based on market capitalization

Decentralized Finance (DeFi) is a structural financial system that seeks to directly connect borrowers and lenders, as well as buyers and sellers of shares by removing banks, brokers and other intermediaries.

But it also raises the question that since there are no more banks involved now, how can we build trust between the two sides?

Well, this is where Blockchain comes in. Blockchain technology, which is basically a network of distributed ledgers, is the foundation of decentralized finance because it prevents data from being tampered with by hacking or manipulating a system.

– Advertising –

So here is a list of the top 5 decentralized finance projects by market capitalization

Come on come on): Dai is a decentralized Ethereum (ETH) -based stablecoin that aims to keep its value constant at $ 1. The goal of this DeFi initiative is to bring stability to the extremely volatile cryptocurrency market. MakerDAO’s first official white paper was released in December 2017, which introduced Sai and only accepted Ethereum as a guarantee.

The Dai Stablecoin system, commonly referred to as the Maker Protocol, accepts Ethereum-based assets as collateral from MKR holders. As a result, you can generate Dai using any Ethereum-based token as collateral in the form of smart contracts, or you can buy Dai tokens directly from any cryptocurrency exchange. Dai’s market cap was $ 6.8 billion at 2:20 pm on September 10, 2022, and a Dai’s current price is $ 0.99.

Avalanche (AVAX): Avalanche is a decentralized proof-of-stake blockchain based on smart contracts. Smart contracts are the rules on which a Blockchain is built and those rules can only be changed by the consent of the community, not by a single person.

Avax is the native token of the Avalanche Blockchain developed by Ava Labs. Emin Gun Sirer, the creator of Ava Labs, is also a professor of computer science at Cornell University.

The best use case for Avalanche Blockchain is that many decentralized applications (Dapps) run on it. These Dapps work according to pre-written rules and therefore no individual can modify them. The market capitalization of Avalanche (AVAX) was $ 6.1 billion at 2:20 pm on September 10, 2022 and the current price of an AVAX is $ 20.45.

Wrapped Bitcoin (WBTC): Wrapped Bitcoin is an Ethereum token designed to act as a digital representation of Bitcoin (BTC) on the Ethereum Blockchain. It is not Bitcoin, but rather an ERC-20 token intended to track the value of Bitcoin. The WBTC was intended to allow Bitcoin holders to engage in Ethereum’s popular decentralized finance (“DeFi”) applications.

Its purpose is to act as a link between Bitcoin and the Ethereum Blockchain. This allows Bitcoin holders to seamlessly interact with the Ethereum Blockchain. The market capitalization of WBTC was $ 5.3 billion at 2:20 pm on September 10, 2022 and the current price of a WBTC is $ 21,344.

Uniswap (UNI): Uniswap, the largest decentralized cryptocurrency exchange, was founded in November 2018. Instead of matching supply and having a centralized exchange that sets the price, the algorithms set the market price based on supply and demand. This allows users to trade cryptocurrency without the assistance of an intermediary, making it completely decentralized.

The buyer and seller trade directly from their wallet, so no third parties are involved. No documents are required to trade on the stock exchange, which makes it permissionless and borderless. Uniswap’s market capitalization was $ 4.9 billion at 2:20 pm on September 10, 2022, and the current price of a UNI is $ 6.53.

Chain link (LINK): Chainlink is a decentralized Blockchain network built on the Ethereum Blockchain. It intends to link Blockchain data with real world data that exists outside of Blockchain. Its native token is known as LINK, which is used as a currency on the Blockchain and also to reward bettors.

Its purpose is to provide off-chain data on the Blockchain in the form of smart contracts, which makes it decentralized and secure. It was launched by Sergey Nazarov and Steve Ellis in 2017. Chainlink’s market cap was $ 3.8 billion at 2:20 pm on September 10, 2022, and the current price of a LINK is $ 3.8.

Leave a Comment