DeFi platforms have been gaining popularity and growing in adoption as an alternative financial system as 2021 progressed. According to data from CoinGecko, the total market capitalization of Decentralized Finance currently amounts to more than 150 billion dollars. A figure much higher than December of last year when the market capitalization barely reached $ 20 billion. 2021 has been the year in which the dominance of Ethereum has fallen drastically in favor of other more sustainable and economical blockchains. Thus, although Ethereum continues to be the blockchain with the highest total blocked value (TVL), with more than $ 155 billion, other blockhains, such as Terra, BSC or Avalanche, are beginning to be widely used.
List of the 5 most successful DeFi in 2021
Lido is a DeFi protocol that offers Ethereum staking services through liquidity pools and without the need for custody. In the Lido platform, several users are organized through smart contracts to obtain the minimum required to staking in Ethereum (32 ETH) and become validators of this blockchain. Everything under the control of a DAO and smart contracts. According to data from CoinGecko, Lido’s market capitalization has reached $ 6 billion and a trade volume of $ 19 million.
Uniswap is a decentralized exchange (DEX) protocol that operates on the Ethereum blockchain. The Uniswap protocol stands out for providing a decentralized means of exchange to its users, in addition to providing a means to create automated liquidity protocol (AMM). The main characteristic of Uniswap is that it is a completely decentralized system governed by smart contracts. The UniSwap (UNI) token price grew 220% over the past year, reaching a market capitalization of $ 9.5 billion. However, at the moment, both its capitalization and the price of the token have fallen compared to the summer. Due, above all, to the high gas rates in Ethereum. As of press time, UNI’s listing is $15,24.
DAI is a stablecoin whose value is pegged 1: 1 to the US dollar. Unlike other stablecoins like Tether, DAI was the first decentralized stablecoin controlled entirely by smart contracts. What has made this cryptocurrency one of the pillars of DeFi. In fact, many experts believe that the birth of DAI was what really drove Decentralized Finance. DAI is an ERC-20 token that works on the Ethereum blockchain. DAI’s market capitalization has risen from $ 1 billion in January 2020 to $ 9 billion today.
Chainlink is a decentralized oracles project for smart contracts that builds on the Ethereum blockchain. The Chainlink network has become one of the fundamental pillars for connecting the DeFi ecosystem with the real world. An oracle is a tool that allows to connect the blockchain and the outside world, enabling the correct functioning of smart contracts. In this case, Chainlink’s oracles secure more than $ 4 billion for leading DeFi apps like Aave and Earn. The price of the Chainlink (LINK) token has risen 68% in the last year, reaching a market capitalization of $ 9.3 billion. As with DAI, Chainlink peaked during May of this year. As of press time, LINK’s listing is at $20,10.
The Associated Press and Chainlink show the role of media in blockchain
Surprisingly, the only non-Ethereum DeFi platform on the list has been the most successful this year. Terra is a blockchain protocol focused on stablecoins that has two cryptocurrencies: the LUNA token and the UST stablecoin. The LUNA token is used as collateral to achieve price stability for the UST stablecoin. Unlike other stablecoins, such as Tether, whose price is directly linked to the dollar, the Terra platform uses an elastic monetary policy to maintain the stability of its cryptocurrency. The process is similar to that of the DAI stablecoin, but done in reverse. While with DAI you have to collateralize the loan by creating new DAI, in Terra you have to burn the LUNA tokens. DAI expands the monetary base and LUNA reduces it. In other words, to create new USTs, you have to burn the equivalent amount in dollars of LUNA.
What is the blockchain Terra and why is its cryptocurrency LUNA growing so much
Mirror Protocol and Anchor Protocol are the two DeFi protocols that have catapulted Terra’s success. In the last year, the price of the LUNA token has grown by 14,397%, reaching a market capitalization of almost $ 36,000 million. The growth of this platform has been stable throughout 2021 and it still has room to grow much more. At the end of this edition, the price of LUNA reaches $95,34.