DeFi tokens represent a diverse set of cryptocurrencies native to automated, decentralized platforms that operate using smart contracts. These provide users access to a suite of financial applications and services built on the blockchain. Also, in these financial applications, $75 billion worth of crypto is available!
Moreover, Decentralized finance (DeFi) tokens command a $114 billion market cap. This is a relatively small proportion of the overall $1.7 trillion cryptocurrency market. Also, it is one of the fastest-growing sectors in the industry, up from $89 billion the previous year.
In addition, decentralized finance is an interconnected ecosystem of non-custodial financial protocols, platforms, and services.
LUNA is the most significant DeFi , with a market cap of $34.3 billion. It’s the native currency of the Terra network. It’s used to collateralize mechanisms that back Terra’s algorithmic stable coins, such as U.S. pegged trust. Terra is usable in the network’s proof-of-stake consensus mechanism. In this mechanism stake, the tokens are rewardable for providing security to the network.
Moreover, a DAI, a USD-pegged stable coin minted by MarkerDAO, is the second-largest DeFi token by market cap, according to Coin Gecko’s list of DeFi tokens.
Following the Chain link’s LINK, the native token of the decentralized oracle network. It feeds smart contracts with accurate, real-world data such as weather reports or price information.
Although cryptocurrency market trackers like CoinMarketCap and CoinGecko group all DeFi-related projects under the same category. Further, they are differentiable based on the governance tokens some DeFi protocols offer.