DeFi has been somewhat stagnant for most of 2022. While most of the projects in this area have shown a lot of promise, the price action for most DeFi coins remains very subdued. This is certainly a disappointing sign, but it also means that there are more opportunities for investors to take advantage. Here’s how:
Despite the slow outlook in 2022, DeFi projects are likely to deliver decent returns this year as well.
Slow sentiment also suggests that the value of the coins has dropped significantly.
There is immense application potential for DeFi projects in the future
Now, finding a good deal in DeFi can often be confusing for the average investor. But here are 3 coins that should be ideal as a beginner.
Uniswap (UNI) is a decentralized exchange that runs on the Ethereum network. It has actually grown over the years to become one of the largest DEXs in the world. Furthermore, the DEX has seen significant development milestones over the past few weeks.
Data Source: TradingView
For example, Uniswap crossed $1 trillion in trading volume on the second day. Unique monthly users have also grown exponentially. However, UNI is still doing very little business. This undervalued nature means that once the market sentiment improves, the coin could rise.
Founded in 2018, Nexo is a decentralized lending protocol focused on providing loans to those who need them. The platform has seen a sharp increase in total lending volume and is set to become one of the largest lending protocols in terms of market capitalization. The project still has a lot to offer this year, so it should be a good buy.
BenQi (QI) is also a lending protocol. It is one of the largest DeFi projects on the Avalanche network. Since its inception, the project has attracted a lot of investments and continues to work on ways to improve its ecosystem.