- DeFi has seen its total value locked crash from over $180 billion to $53 bilion.
- Uniswap, Maker, and dYdX are strong cryptocurrency investments.
The Decentralized Finance (DeFi) industry has come under intense pressure in 2022 as the crypto meltdown continues. Most platforms that did well in 2021 have seen the level of activity tumble. As a result, the total value locked (TVL) in DeFi has crashed from an all-time high of $180 billion to just $53 billion. This article will look at some of the best DeFi tokens to invest in.
Is DeFi dead?
A common question is whether DeFi is dead. In my view, the industry is not dead. For one, during the ongoing crypto clash, companies that went out of business like Voyager Digital and Celsius were all centralized. DeFi was able to do well because of its open-source nature and its transparency. Anyone can see how funds are flowing in DEXes like Uniswap and PancakeSwap.
Instead of dying, the DeFi industry is in a shake-up period such as what happened during the dot com bubble. While most dot com companies died, others like Google, Salesforce, and Amazon thrived. The same thing will likely happen in DeFi, where many platforms will disappear and a small number of them thrive.
Uniswap
Uniswap price has fallen by about 64% this year. Recently, however, it has risen by more than 110% from the lowest level this year. Uniswap, like other DEX and CEX platforms, has seen its volume crash in the past few months.
Still, Uniswap is a good long-term investment for three main reasons. First, it has a strong market share in the industry, where it handles about 64% of all volume. Second, Uniswap is expanding its ecosystem in a bid to become more competitive. Finally, Uniswap Labs recently raised millions of dollars, which it will use to grow its ecosystem.
Learn the best ways to invest in Uniswap.
dYdX
dYdX is another DeFi token to buy for the long term. Like UNI, dYdX price has crashed by more than 80% this year as the volume of cryptocurrencies has crashed.
dYdX is a leading DEX that has the second-biggest market share in terms of trading volume. It achieves this while maintaining low processing fees. A key catalyst for dYdX is the upcoming launch of dYdX Chain, which will be built on Cosmos. The chain will make it possible for developers to build apps on its infrastructure.
Learn more about how to buy dYdX.
Maker
Maker’s MKR is another important DeFi token to buy for the long term. It is a leading DeFi platform that has a total value locked of over $7 billion. Maker is known for Dai, its algorithmic and over-collateralized stablecoin that has a market cap of over $6 billion. Dai is used in other DeFi platforms like Aave and Compound. Maker price will likely continue rising in the coming months.
