- Chainlink (LINK)
- Uniswap (UNI)
- Aave (AAVE)
- Compound (COMP)
- Stellar (XLM)
1. Chainlink (LINK)
Chainlink is the world’s first and most widely used oracle service. It forms the backbone of smart contracts, specifically the DeFi protocols relying on real-world external data to perform their tasks. The platform primarily functions on the Ethereum network but is designed to support other blockchains too.
In April 2021, Chainlink revealed Chainlink 2.0, promising significant enhancements and fixes to commonly faced issues with oracles. The upgrade aims to fix scalability and cost issues by introducing an off-chain processing blockchain called Decentralized Oracles Networks (DONs), which reduces congestion on the primary blockchain and only interacts with it for final results.
DONs derive their security from the primary blockchain but enable complex design and rapid processing. Chainlink 2.0 powers a new generation of smart contracts, particularly those related to DeFi. It is a multi-year plan, which represents the vision of the team. It also reiterates the persistent efforts to keep the oracle system updated.
Chainlink: The Preferred Oracle Solution
Since Chainlink was the first oracle system with a robust design, it is the preferred oracle provider for almost all projects. Thus, it is the most integrated service in the crypto space. Therefore, Chainlink’s network effect cannot be overstated and has colossal implications.
Chainlink currently boasts a tally of 512+ projects and ventures (both inside and outside the native crypto industry). These include blockchain, compliance, real estate, gaming, data providers, infrastructure, DeFi, NFTs, payments, storage, developer tools, marketing, etc.
There are various blockchain networks, blockchain projects, and decentralized networks out there. They all require real-world data if they want to be functional. While LINK is built on Ethereum, the Chainlink network is flexible and designed to provide data to any blockchain or smart contract network. Chainlink is integrated with popular blockchains like Polkadot, Cosmos, Binance Smart Chain, NEAR, and many more. This means that investing in Chainlink now likely provides upside if we end up in a multi-chain future. Experts believe that buying LINK now could double your investment shortly.
2. Uniswap (UNI)
Uniswap is a decentralized exchange built on the Ethereum blockchain. Decentralized exchanges (DEXs) let investors swap cryptocurrencies without making an account, as opposed to centralized exchanges like Coinbase or Binance. As a result, the platform transacts more than a billion dollars in cryptocurrencies daily, making it the most used decentralized exchange in the world.
Uniswap token (UNI) is an ERC-20 token, meaning that it uses the Ethereum network to process transactions. Many cryptocurrencies use Ethereum, including most non-fungible tokens (NFTs). The main advantage of Ethereum over Bitcoin is its smart contract technology. Smart contracts enable developers to make valuable protocols on the Ethereum network, such as Uniswap.
UNI: A Digital Asset on The Rise
In September 2020, Uniswap gave 400 UNI tokens to each crypto wallet that has ever interacted with its platform. At the time, the airdrop was worth about $800, and it made headlines in the crypto industry. However, for those who held on to their free UNI tokens, their 400 UNI tokens are now worth more than $8,000.
Uniswap has grown with the DeFi industry through 2021 so far. It is the leading exchange on the Ethereum network, and investors have staked over a billion dollars in cryptocurrencies on the platform. Holders can use UNI tokens to vote on upgrades to the protocol, and investors can stake their UNI tokens for liquidity to earn interest on their investment. So if you are thinking of buying UNI, now is a great time to do so.
Notably, the Uniswap exchange is regarded as one of the most secure ways to exchange digital assets. Since Uniswap interacts directly with users’ Ethereum wallets, a hacker would have to breach their crypto wallet as Uniswap does not hold user funds.
3. Aave (AAVE)
AAVE is the native token of the Aave platform, and the coin has increased substantially since 1st January 2021. Moreover, the protocol’s trading volume shows that it is not slowing down anytime soon due to investor momentum.
Based on fundamental and technical assessments, several analysts think that Aave has plenty of room for growth. As a top 30 digital asset, many experts believe that AAVE is a good investment compared to other decentralized finance tokens and mainstream cryptocurrencies. Despite all the ups and downs in Aave’s history, analysts project AAVE’s price could grow further in the long term.
According to analyst Rayne Harris, “Nobody can forecast completely the precise AAVE price. AAVE might hit the top high of $1,000 by the end of 2025.”
Therefore, August 2021 could be the right time to invest in Aave (AAVE).
Aave: Unique Features
At the moment, AAVE is developing into one of the largest cryptocurrencies globally due to partnerships with some large companies and the social acceptance of Aave. The price will continue to rise because more people are investing in the token. There is a strong team behind the project. The success of cryptocurrencies is heavily dependent on the team behind the project’s roadmap. With 10,000+ cryptos running on 381 exchanges, Aave is benefiting from the continuous development of the protocol and its novel token.
Aave is also straightforward to use. The founder of the network ensured that all technicalities associated with cryptocurrency platforms did not become part of this network, so anyone (with or without crypto knowledge) can use Aave.
The platform devs have tried to make this system as easy as possible for lenders and borrowers. Using the system requires lenders to deposit funds in the network’s liquidity pools. Borrowers can then borrow or take loans from these pools. However, they must first lock a collateral amount higher than the amount they wish to borrow.
According to Coin Price Forecast, AAVE could be worth $598 by the end of 2021, based on the growing trend of decentralized finance. The experts believe AAVE could command prices of $1,291 (2023) and $1,621 (2024). In the long term, based on the increased use of decentralized lending platforms, AAVE could trade for prices of $1,943 (2026), $2,148 (2029), $2,552 (2031) and $2,652 (2032).
4. Compound (COMP)
COMP is the governance token for the Compound decentralized finance protocol. DeFi networks seek to convert traditional financial into their decentralized versions. In this manner, regular users gain a share in the profits that were once only available to large financial institutions.
Compound is an algorithmic money market protocol that lives on the Ethereum blockchain. Notably, this network is credited with starting the current DeFi craze. In addition, Compound was the first platform to introduce yield farming in 2020. Yield farming is similar to staking crypto in many ways.
Users lock their crypto holdings into large farming pools. They receive rewards based on the amount of crypto they lock and how long they participate in the pool. Unlike staking pools, yield farming pools feature much shorter lockup periods.
Compound’s yield farming protocol functions as a decentralized lending system. Users provide liquidity to large lending pools. In return, they receive rewards in the form of tokens. Users can convert these tokens to any supported asset in the network. These loans are issued with interest that is then split between the lender and the lending pool.
Compound brings a lot of benefits to the market. For one, it has introduced an open lending environment to the blockchain sector. Anyone can borrow funds from Compound farming pools. There are no credit checks, and the funds are issued immediately. For these and more reasons, experts believe COMP is a must-buy cryptocurrency.
5. Stellar (XLM)
There are various reasons why you might want to invest in Stellar XLM. One of these reasons is its practicality as a currency. The Stellar blockchain can handle anywhere between 1000 and 5000 transactions per second (TPS).
Stellar is a formidable competitor to centralized payment systems, a factor that stands to give it value as more people adopt crypto payments.
The stellar blockchain allows for the building of assets. Hence, users can launch tokens and build DEXs on this blockchain.
Since XLM is the native token on the stellar blockchain, it means there will always be value for it. The decentralized exchange could be one of the critical factors that will drive the value of XLM in the long run. While it accepts payments in any currency, Stellar is one of the anchor currencies on this network. This means that once people on-ramp via fiat, Stellar Lumens becomes the best option for moving between assets at a minimal cost.
Various factors point to Stellar as an emerging platform with immense potential, making an XLM a worthy investment.