Three DeFi coins to buy by the end of May
DeFi has stagnated somewhat for most of 2022. Even though most projects in this area have shown a lot of promise, the price action for most DeFi coins remains very suppressed. This is of course a gloomy sign, but it also means that there are more opportunities for investors to take advantage of. Here is how:
Despite the slowed outlook in 2022, DeFi projects can still offer decent returns this year.
The slowed sentiment also suggests that coins have become significantly undervalued.
There is huge application potential for DeFi projects in the future
Now, finding a nice bargain in DeFi can often be confusing for the average investor. But here are 3 coins that should be ideal as a start.
Uniswap (UNI) is a decentralised exchange that runs on the Ethereum network. It has in fact grown over the years to become one of the biggest DEX in the world. Also, over the last few weeks, the DEX has seen important growth milestones.
Data Source: TradingView
For example, Uniswap crossed $1 trillion in trade volume the other day. Unique monthly users have also risen sharply. However, UNI is still trading very low. This undervalued nature means the coin can shoot up once sentiment in the market gets better.
Founded in 2018, Nexo is a decentralised lending protocol that focuses on offering loans to those who need them. The platform has seen sharp increases in total loan volumes and is set to become one of the largest lending protocols in terms of market cap. The project still has a lot to deliver this year, so it should be a good buy.
BenQi (QI) is also a lending protocol. It is one of the biggest 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.