Bitcoin has achieved a remarkable milestone, surpassing a market value of $107.8K.

Bitcoin has achieved a remarkable milestone, surpassing a market value of $107.8K. This surge can be attributed to a combination of persistent disbelief among retail investors and aggressive accumulation by institutional players. Recent excitement has been further fueled by Donald Trump's pro-crypto stance. His announcement to appoint 

 has been met with enthusiasm, especially since it signals the removal of Gary Gensler, who has often been viewed as an obstacle to crypto growth. As Trump reiterated his plans for a U.S. strategic Bitcoin reserve, the sentiment in the crypto community has grown increasingly positive, suggesting a potential shift in regulatory dynamics that may benefit the market.

Meanwhile, the number of wallets holding between 100 to 1,000 BTC has risen significantly. In the past month, there’s been a net increase of 1,289 such wallets on the Bitcoin network, representing 9% growth in a short time frame. Moreover, these wallets have collectively added approximately 214,900 BTC to their holdings, marking a 5.1% increase in total assets.

Institutional Influence and MicroStrategy's Role

The current Bitcoin rally differs from previous ones, being primarily institutional-driven rather than retail-focused. MicroStrategy’s Executive Chairman, Michael Saylor, has made significant Bitcoin purchases, recently acquiring over 36,900 BTC. This has led to mixed reactions on social media: while many praise Saylor as a visionary, critics express concerns about the company's reliance on borrowed funds for these acquisitions. The market's response to MicroStrategy's buying spree underscores its influence on Bitcoin's perception as a legitimate investment. Additionally, rising metrics, such as daily active addresses and an increase in higher-tier Bitcoin wallets, indicate growing utility and institutional interest in Bitcoin, suggesting a more sustainable path for this bull market.

Chainlink has emerged as a key player in the crypto space, achieving a 51% increase in December 2024. Its advancements in the CCIP have attracted traditional financial institutions, further legitimizing its technology. The launch of Chainlink’s new staking program has not only increased user engagement, but has also reduced selling pressure. Meanwhile, the MOVE token, part of The Movement Network, experienced an impressive 84% rise shortly after its debut, driven by airdrop events and exchange listings. Despite concerns about potential sell-offs, MOVE’s innovative approach positions it well for future growth in the Ethereum scaling landscape.

Advanced

Intro to Santiment.png

Bitcoin Tests New ATH as Wallets Holding Bitcoin Surge to New Highs; LINK and MOVE Outperform

Learn about peaq network, a Layer 1 blockchain purposely built and optimized for dePIN and RWA.

Decentralized physical infrastructure networks (DePINs)

 are currently among the hottest sectors in the crypto space. peaq, a 

 blockchain purposely built and optimized specifically for these markets, aims to power a global infrastructure revolution using DePIN technology.

This article introduces you to the peaq network and the PEAQ token, and explores why this L1 chain is so popular among real-world asset and 

A decentralized physical infrastructure network (DePIN) is a network that uses blockchain technology to build and operate real-world infrastructures with decentralized governance and ownership. DePIN stands in sharp contrast to the traditional model, in which centralized entities manage their ecosystems with complete control.

DePINs take a community-driven approach and use crypto incentives to expand and maintain their infrastructures. This significantly reduces up-front investments for these networks, and empowers users with the ability to set up their own devices and earn tokens as providers. DePIN leverages this decentralized and distributed architecture to eliminate single points of failure (SPOFs) and enhance the security of the infrastructure.

Some of the most notable DePIN projects are as follows:

 is a high-performance L1 blockchain purposely built and optimized for DePINs and 

. Offering a wide range of tools for projects, over 50 decentralized DePINs in 21 industries are developing on the peaq chain. As the world's largest and fastest-growing DePIN ecosystem, peaq network hosts more than 3 million machines, vehicles, robots and devices and accounts for over $1 billion worth of total value in DePIN devices.

peaq network was co-founded by Max Thake, Leonard Dorlöchter and Till Wendler, bringing together their extensive expertise and experience in blockchain, decentralized networks and entrepreneurship.

Thake, a writer and entrepreneur, excels at simplifying complex technology and using this approach to solve problems. Dorlöchter, active in the blockchain space since 2015, is passionate about decentralization and self-sovereignty and is a member of the 

. Wendler has a strong background in tech startups and decentralized systems, which he leverages to navigate the complexities of the 

The trio, together with other team members, have dedicated their efforts to enable a more inclusive, transparent and equitable world through the advent of 

In March 2024, peaq raised $15 million in a round led by Borderless Capital and Generative Ventures. Additionally, the project secured $6 million and $2.5 million of funding from investors in June 2022 and June 2021, respectively, and participants contributed nearly $20 million to peaq network's public sale in May 2024, bringing the total funds raised to an impressive $43.48 million.

Besides Borderless Capital and Generative Ventures, notable investors behind peaq network include Animoca Brands, CMCC Global, The Spartan Group, DWF Labs, Fundamental Labs, Moonrock Capital, HashKey Capital and GSR.

peaq's modular DePIN functions are designed to empower developers to build next-generation decentralized physical networks. DePINs and 

 (DApps) can leverage these ready-to-use functions to equip their ecosystems with essential core functionalities. These include self-sovereign machine IDs, data verification, role-based access control, data storage, autonomous 

, machine payment processing and data indexing.

Modular DePIN functions work as building blocks for decentralized physical infrastructure networks, enabling them to explore synergies with peers and expand their demand sides. They’re available via the peaq SDK (software development kit) in JavaScript, allowing the seamless deployment of modules with approximately 15 lines of code. With peaq, developers can also enjoy increased flexibility and convenience with Wasm and 

peaq network's fast-growing ecosystem consists of over 50 DePINs in 21 industries, including energy, mobility and telecom. Some of the top DePIN and RWA projects building on peaq’s purpose-built L1 chain include :

In terms of use cases, peaq provides a wide range of utility for enterprises, ranging from mobility and connectivity to 3D printing, cloud gaming and drone delivery.

Practical examples of peaq network uses include co-creating the standards and infrastructure for the future of mobility under the 

. The project has an overall size of more than €20 million ($21 million) and includes participants like Bosch, Airbus, Continental, 

 in its car-sharing fleet to the peaq ecosystem, enabling users to invest in them via the web3 car-sharing app and earn rewards from rides they provide.

peaq network is powered by its native PEAQ token, which was launched on Nov 12, 2024 alongside the peaq blockchain's mainnet. The cryptocurrency's key utilities for users include the following:

With no cap on its maximum supply, PEAQ's total supply at genesis stood at 4.2 billion tokens, with an initial inflation rate of 3.5% that will decrease annually by 10% and stabilize once the network reaches 1% inflation. Currently, 4.212 billion PEAQ is circulating in the market. You can find out more about the token's genesis allocation 

peaq's network of DePIN and RWA projects is expanding at a rapid pace. Some key statistics and figures in this field are as follows:

With a high-performance, purpose-built Layer 1 blockchain, peaq network powers a fast-growing number of DePIN and RWA projects to power a global infrastructure revolution. Boasting more than $40 million in funding and over 50 DePINs, $25 million managed in tokenized real-world assets and 3 million devices within its ecosystem, the L1 chain already has a solid foundation to realize its vision and achieve its goals.

 via Bybit’s user-friendly and intuitive trading platform as a Perpetual contract? 

Intermediate

peaq.png

Peaq Network: A Layer 1 Blockchain Purpose-Built for DePIN

Rootstock (RBTC) is an EVM- and smart contract–capable Layer 2 sidechain for Bitcoin designed for DeFi use cases.

 (DeFi) sector back in 2017 is firmly associated with the 

 (ETH) blockchain. It was Ethereum that introduced the concept of 

, and the first prominent DeFi protocols were all born on this blockchain. For a while, it seemed like 

 (BTC) stayed away from the emerging DeFi phenomenon. It’s only in the past few years that the Bitcoin DeFi ecosystem, dubbed BTCFi, seemingly started to show the first signs of life. This impression is, however, not entirely correct. As early as January 2018, the first DeFi-focused 

 solution for Bitcoin — the Rootstock (RBTC) sidechain — celebrated its mainnet debut.

Rootstock remains the oldest and longest-running Layer 2 platform for the Bitcoin ecosystem. It’s smart contract-capable and highly compatible with the 

 (EVM). While the platform can support all kinds of 

 (DApps), it specifically focuses on the DeFi niche, with nearly all of its leading apps dedicated to crypto finance use cases. Along with smart contract functionality, Rootstock enjoys the famed security of Bitcoin, thanks to its merged mining with the world's largest chain. The sidechain also features superior scalability and lower transaction fees than Bitcoin’s 

With this combination of benefits, it’s no wonder that the Rootstock sidechain has managed to keep a leading position in the fast-developing BTCFi field all these years.

 (RBTC) is a smart contract–capable Layer 2 sidechain designed for Bitcoin DeFi applications. Rootstock's native cryptocurrency, RBTC, is an asset pegged to BTC at a 1:1 ratio.

 Users can transfer their BTC funds to the sidechain, where their coins are converted to RBTC. From then on, users are free to use the RBTC crypto to make use of Rootstock's extensive ecosystem of DeFi apps and tools. Rootstock represents a major way for Bitcoin holders to enjoy smart contract–powered DeFi applications without having to move their assets and activity to Ethereum or other smart contract chains.

Since the Bitcoin network has virtually no smart contract capabilities, many DeFi-minded BTC holders have to convert their funds to Ether or other smart contract chain coins to enjoy crypto finance opportunities on those blockchains. While Ethereum, 

 (ADA) and other prominent smart contract chains offer a diverse array of DeFi solutions, the problem with converting BTC to these coins is the loss of peg; e.g., by exchanging BTC to ETH, you’re decoupling your funds from the world's largest cryptocurrency, well regarded by many investors as the gold standard in crypto investment.

Rootstock solves this issue by offering a BTC-pegged asset, RBTC, that can be swapped back for BTC at any time and returned to the Bitcoin Layer 1 environment. The platform essentially lets you enjoy a plethora of DeFi opportunities while keeping your overall funds tightly pegged to BTC.

Rootstock features EVM compatibility through its Rootstock virtual machine (RVM). This makes porting Ethereum DApps to the sidechain a breeze. The platform also enjoys the security of Bitcoin through a merged mining procedure, whereby miners can use the hash power contributed to securing the Bitcoin network to simultaneously mine blocks on Rootstock as well.

Rootstock's block production time is just 30 seconds, twenty times as frequent as Bitcoin's 10-minute intervals. This allows for fast and efficient transaction processing. At the same time, to ensure complete security of operations, Rootstock normally requires that each transaction go through a minimum of 12 confirmations, which takes the total time for complete transaction finalization to six minutes.

 difficulty is considerably lower than Bitcoin's, and its network congestion isn't anywhere near the levels of Bitcoin or Ethereum. As a result, gas fees on the chain are notably lower than on Bitcoin and Ethereum, with an average transaction fee of around five cents.

The Rootstock sidechain was first conceptualized in 2015 by a group of Argentinian software engineers from RSK Labs. It was officially launched in January 2018, making it the oldest existing Bitcoin Layer 2 solution. In its earlier years of operation, the platform was known as the RSK blockchain, but rebranded to Rootstock in 2022. The project's co-founders are Diego Gutiérrez Zaldívar, Adriȧn Eidelman, Gabriel Kurman and Sergio Demian Lerner.

Rootstock uses an address system compatible with and similar to Ethereum's, with 40 alphanumeric characters and an account-based model. This differs from the 

 (UTXO) model employed for Bitcoin transactions. Transactions on the sidechain directly modify account balances, similar to Ethereum, rather than adjusting unspent output amounts.

This account-based address system ensures adherence to EVM compatibility and easy accommodation of DApps ported from EVM chains.

, known previously as the RSK virtual machine, is a processing engine used by the sidechain. It's EVM-compatible, allowing developers to easily port and adapt Ethereum smart contracts and DApps to the Rootstock environment. Additionally, developers can use Solidity, the primary programming language used within the Ethereum ecosystem, to build Rootstock-based applications.

The project's team tries to maintain compatibility between RVM and EVM carefully. Around once a year, the Ethereum developer community performs a 

 of the blockchain, upgrading it to a new version. The key goals of these upgrades are to introduce new functionality, address security concerns and improve existing features. If the new features introduced by Ethereum align with the ethos and goals of the Rootstock project, the team initiates a corresponding hard fork upgrade to the sidechain and RVM in order to maintain the snug compatibility between the processing engines of the two chains.

Rootstock's security mechanism is well protected, thanks to 

 with Bitcoin. Like Bitcoin's Layer 1, Rootstock uses the 

 (PoW) block generation procedure. Miners can merge-mine RBTC using the same 

 power they contribute to mining Bitcoin. This provides an excellent way for miners to earn additional crypto income without the need to contribute more computing capacity. Merged mining is also a key way for PoW blockchains to reduce their environmental impact.

Since the average block time on the Rootstock blockchain is only 30 seconds, miners can expect more frequent rewards from their block generation activity. In general, Rootstock's mining difficulty is lower than Bitcoin's, allowing less powerful mining machines to still generate income on the network.

Rootstock's mining rewards are paid out in RBTC, the BTC-pegged asset that we'll cover in more detail later in the article.

 is Rootstock's system to ensure a peg between BTC and RBTC and the secure transfer of assets between the sidechain and Bitcoin Layer 1. The Rootstock PowPeg allows anyone to lock BTC on the Bitcoin chain and get securely issued RBTC on the Rootstock side. PowPeg also facilitates the process of burning RBTC on Rootstock and receiving the requisite amount of BTC on Layer 1.

Rootstock PowPeg uses Bitcoin's PoW to maintain the security and integrity of the peg in conjunction with institutional nodes running specialized 

 devices. PowHSMs securely sign transactions involving the transfer of assets between Rootstock and Bitcoin. The group of nodes running PowHSMs, called the PowPeg Federation, is currently made up of nine reputable organizations in the blockchain sphere — BlockVenture, Luxor, Сollider, Сonstata, Mycointainer, pNetwork, Sovryn, Xapo and RootstockLabs.

Rootstock Smart Bitcoin (RBTC), previously known as RSK Bitcoin, is the platform's main cryptocurrency. RBTC is pegged to BTC at a ratio of 1:1 through the securely enabled PowPeg mechanism covered above. Like BTC on the Bitcoin blockchain, RBTC is used to pay transaction fees and reward miners on the Rootstock network. However, unlike BTC, RBTC can also be used within DApps for functions like collateral provision, lending, borrowing and more.

Given RBTC's peg to BTC, it’s not surprising that its tokenomics borrows some critical parameters from Bitcoin. RBTC's total supply is specified at 21 million, matching the 

The Rootstock platform also has a second token, RIF, primarily designed to support DApps that are part of the 

 (RIF) protocol, a layer built on top of the Rootstock chain for apps designed for staking, lending, payments and other DeFi use cases. There are currently several RIF DApps on Rootstock that can use the RIF token.

 within these DApps. It can also be staked on Rootstock to open up the opportunity to participate in on-platform 

. By staking RIF, you’re issued stRIF tokens, which enable you to participate in governance votes via the 

. This is the platform's primary governance entity, through which community members — users and developers — can influence the future direction and improvements to the sidechain and its ecosystem.

For instance, during the early stages of the DAO's operation, community members can vote on the allocation of ecosystem grants. In the future, decision-making on other initiatives (e.g., rewarding developers contributing to the growth of Rootstock) will be implemented.

RIF is a supply-capped token, with a total and maximum supply of 1 billion. The token's overall supply allocation shares, as outlined in the project's white paper, are as follows:

As a leading Bitcoin sidechain capable of executing smart contracts, Rootstock boasts a thriving ecosystem of DApps, primarily in the DeFi domain. As of mid-December 2024, the total number of applications, utility tools, wallets and other smart contract–enabled solutions on Rootstock stands at close to 180.

One of the leading applications on the chain is Sovryn, a decentralized Bitcoin trading and lending platform. Another popular DeFi app is 

 (AMM) built on the Ethereum blockchain. In addition to a plethora of DeFi apps, Rootstock has solutions for 

The Rootstock Runes Mock Bridge project allows developers to create Rune tokens on the sidechain. Introduced in April 2024, the 

 has opened a way to efficiently create Bitcoin-based fungible tokens by leveraging the blockchain's native UTXO transaction model. Rootstock's Runes Mock Bridge supports the process of creating these tokens by first etching Runes on a Bitcoin, and then mirroring their representations to the sidechain. The replication of Bitcoin-based Runes tokens on Rootstock is enabled via the ERC-1155 token standard. This is a standard utilized on EVM-compatible chains to transfer blockchain assets of both fungible and non-fungible varieties efficiently.

Rootstock Token Bridge is a bridging solution designed to facilitate the transfer of ERC-20 assets between the Rootstock sidechain and Ethereum. Although Rootstock and Ethereum share the same address format and model, sending assets between these chains directly via your wallet may not work. Instead, to transfer assets, you are advised to use the Rootstock Token Bridge, which will convert the transferred tokens to a requisite format.

 projects active on the Rootstock chain. One of these, NFTs2Me, allows you to create NFTs with no coding skills required. The other project, coNFT, is a comprehensive multichain platform that offers users a wide variety of NFT-focused products and services — 

 name service, analytics and more. coNFT has access to data and NFT services across over 100 blockchain platforms.

The oldest Bitcoin sidechain in existence, Rootstock continues to play a key role in the development of Bitcoin-linked DeFi — BTCFi. The platform's EVM compatibility also positions it as a major bridge between the Ethereum and Bitcoin ecosystems — the blockchain environments of the world's two leading cryptocurrencies by market capitalization.

Over the years, Rootstock has accumulated a comprehensive arsenal of DeFi solutions — DEXs, liquidity management apps, 

 platforms, lending and borrowing protocols, NFT utilities and more. At the same time, RBTC's peg to BTC presents a unique way for crypto users to enjoy these DeFi protocols while holding an asset tightly coupled with Bitcoin's market price.

Developers can also enjoy a familiar environment, with the Solidity programming language and an EVM-compatible account model utilized by the sidechain.

Importantly, Rootstock offers efficient transaction processing — supported by its 30-second block intervals — and lower transaction fees than either Ethereum or Bitcoin. With gas fees a major concern for users on both of these Layer 1 chains, Rootstock is a platform that deserves close attention from both DeFi users and developers.

rootstock bitcoin.png

Rootstock (RBTC): Boosting Bitcoin DeFi With Smart Contracts

Dive into World Liberty Financial, a decentralized finance (DeFi) project inspired by Donald Trump, and its native WLFI token.

 (DeFi) project inspired by Donald Trump, the incoming president of the United States. The project aims to provide innovative financial solutions while leveraging the Trump brand's influence. This article will explore the project’s key features, the Trump family's involvement and the utility and tokenomics of the WLFI token.

 is a DeFi project designed to revolutionize modern financial transactions. This project operates on blockchain technology and integrates advanced DeFi tools that allow users to trade, earn and borrow with efficiency. 

 has publicly promoted the launch of World Liberty Financial and its native WLFI token.

On October 16, 2024, Donald Trump posted on X announcing that the project was live. His family members are also significantly involved in this exciting project. Donald Trump Jr. and Eric Trump are at the forefront, working diligently to develop the platform and promote its goals.

Barron Trump, just 18 years old and a freshman at NYU, has taken on the role of “Chief DeFi Visionary.” The Trump family has utilized social media to build interest in World Liberty Financial, asserting that it could transform personal finance management for individuals everywhere. Despite their involvement, the project claims to remain non-political and separate from any political campaign. 

Aside from Donald Trump and his family, there are other people on the team behind this DeFi initiative. The official website lists five co-founders: Chase Herro, Zak Folkman, Steven Witkoff, Zach Witkoff and Alex Witkoff. The project also features notable advisors, including Sandy Peng from Scroll and Luke Pearson from Polychain Capital.

Its primary mission is to empower users by providing them with tools for financial independence. Below are some key features.

World Liberty Financial Holdings has recently captured attention through its 

. The World Liberty Multisig wallet completed $12 million worth of transactions, demonstrating a clear strategy to build a well-rounded cryptocurrency portfolio.

 was 2,631 ETH for $10 million, purchased at $3,801 per token. Ethereum’s smart contract capabilities make it a cornerstone of many DeFi projects, solidifying this as a strategic decision for the platform. The wallet also secured 41,335 LINK for $1 million at $24.20 each. Additionally, $1 million was allocated to purchase 3,357 AAVE at $297.80 per token. AAVE is a leader in DeFi, offering seamless lending and borrowing solutions.

The WLFI token is important in the World Liberty Financial ecosystem. Built as an ERC-20 token, it powers several essential functions on the platform:

The tokenomics of WLFI include a total supply of 100 billion tokens. Below is an outline of its distribution structure:

The launch of the WLFI token has faced significant challenges and has failed to meet its initial sales targets. Investors showed less interest than anticipated, leading to sluggish sales for the World Liberty Financial project. This disappointing start raised concerns about the project's viability in the competitive decentralized finance (DeFi) landscape. Despite the backing of Donald Trump, the token struggled to attract the expected level of investment during its initial offering.

In a surprising turn of events, Justin Sun, the founder of the TRON blockchain, stepped in with a substantial 

. Sun's purchase allowed him to acquire over half of all WLFI tokens sold, positioning him as the largest investor in the project.

World Liberty Financial aims to make a significant impact in the DeFi sector, which has largely underperformed throughout the current bull market. The potential of clearer regulations for the wider crypto industry under the incoming Trump administration has boosted investors’ hopes for a revival of the DeFi space. 

Furthermore, backing from the Trump family has drawn considerable attention to the World Liberty Financial project. However, it’s essential for potential investors to 

 before committing funds to avoid scams and ensure safe engagement with financial projects.

world liberty financial.png

World Liberty Financial: Trump's DeFi Project

DeFi

Investing

Are you looking for upcoming DeFi projects to invest in 2021? Look no further as the article details the top 8 DeFi projects of the year.

LearnBybit-Defi-650X380.jpg

The year 2020 saw a phenomenal rise for the entire crypto industry. In that growth, the industry segment of 

, or decentralized finance, was one of the most prominent contributors.

Decentralized finance is a system that leverages blockchain technology to make the world of finance more accessible. It includes diverse financial applications aimed at removing banking intermediaries or centralized exchanges from the financial system.

 applications, platforms and tokens are revolutionizing the world of crypto-economy and finance in general. In the coming paragraphs, we will study them in detail.

When you use legacy digital payment methods such as credit cards, there remains a bank that has issued you the card to authorize your transaction between you and the seller. In decentralized finance, no such centralized authority or financial intermediary sits between the payer and the payee. Except for the parties involved, no one has the power to stop, pause or record the transaction in the private ledger.

 blockchain as their foundation. Ethereum is more conducive than any other blockchain to building peer-to-peer decentralized applications. What gives this distinct advantage to Ethereum is the self-executing smart contracts. Languages, such as Solidity, are specifically designed to create and deploy these smart contracts.

There are several types of DeFi applications. The most popular ones include decentralized exchanges, stablecoins, lending platforms, wrapped bitcoins and prediction markets. Newly evolving DeFi concepts such as yield farming, liquidity mining, composability, money legos and more enrich these applications.

$110 billion. With more than $18 billion market capitalization, 

 top the chart, followed by LINK ($16.9 billion), WBTC ($9 billion), LUNA ($6.2 billion) and Aave ($5.4 billion). The other protocols whose tokens occupy the rest of the five places in the top 10 list include Avalanche (AVAX), 

 (DAI), PancakeSwap (CAKE) and Maker (MKR).

DeFi applications have expanded the scope of blockchain. Yield farming, stablecoins, lending platforms and several similar derivative applications of DeFi have helped blockchain to become more rewarding and inclusive—and less volatile. Investors are seeing great potential in DeFi, with the billionaire entrepreneur Mark Cuban comparing its growth to that of the

early days of the internet. Cuban himself has invested in multiple DeFi protocols, including

The promise that Cuban sees in DeFi reflects its growth. Even in February 2020, the total value locked in DeFi was hovering around $1 billion. By the end of 2020, the TVL had crossed the mark of $13 billion, registering nearly 2,000% growth over a year.

 It’s a decentralized crypto trading protocol with more than $205 billion in trading volume. The protocol has over

72,000 liquidity providers and more than 200 DeFi integrations. It has so far facilitated around 41 million trades. With features such as token swaps, programmable liquidity, flash swaps and highly decentralized, manipulation-resistant price oracles, it is rewarding for developers to integrate their projects with thousands of tokens and billions in liquidity through Uniswap. 

60% of the UNI genesis supply goes to its community members. This is followed by 21.51% allocated for the team members, 17.80% for the investors and 0.69% for the advisors. UNI tokens have their maximum supply capped at

 stands short for Decentralized Autonomous Organization. MakerDAO runs by leveraging smart contracts executed on the Ethereum blockchain. The platform helps generate Dai, a stablecoin that anyone can use anywhere, anytime. The price of Dai is soft-pegged to the US dollar, and it uses a mix of other cryptocurrencies as collateral. 

The supply-demand mechanism of Dai coins does not come under the purview of the protocol. Dai is not produced by mining, like Bitcoin or Ethereum. Neither does any private company mint Dai coins, according to its issuance policy. What makes Dai unique and decentralized in the truest sense of the term is that any willing user can mint it using the Maker protocol. The total 

 of Dai tokens has crossed the mark of 3.4 billion.

 helps you build your universally connected smart contract. Its decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain. Chainlink is revered across the industry for its capacity to empower the future of smart contracts. Several leading DeFi protocols, such as AAVE, Synthetix, Yearn.finance and Celsius leverage the services of Chainlink. It enables the smart chains to access real-world data and off-chain computation, while maintaining the security and reliability guarantees inherent to blockchain technology. The maximum supply of LINK tokens is 1 billion, while the circulating supply hovers a little above

 comes with multiple game-changing features that have the power to radically boost the future of DeFi. It enables cross-blockchain transfer of various types of data or financial assets In addition, it helps to create a custom blockchain using the Substrate framework, thus building the foundation for economic scalability. Polkadot can upgrade without hard forks. Its novel data availability and validity scheme ensures safety for everyone. The governance of the protocol is user-driven in the truest sense of the term. DOT, the native token of the platform, has a total supply of more than 1 billion tokens, with the circulating supply being nearly

UMA is short for Universal Market Access. It helps create synthetic assets on Ethereum in a fast, flexible and secure way so that DeFi users can also access traditional market instruments. Using UMA, you can create tokens that track the price of almost anything. Its economic guarantees ensure that your contract is beyond manipulation. UMA’s minimal on-chain transactions also help increase security and reduce costs. With 11 projects building their synthetic assets on UMA, the total value locked in UMA contracts is nearly

$193 million. The native currency, UMA tokens, have a total supply of a little more than 102 million. The circulation stands at 60 million.

PancakeSwap positions itself as the number one automated market maker on the Binance 

. Using its exchange service, you can buy or sell crypto. PancakeSwap farms allow you to earn by staking liquidity pool tokens. With its pools, you can stake the native token of the platform, CAKE, and earn new tokens. You can “unstake” them at any time with rewards calculations per block. The protocol also offers you chances to win lotteries, and trade in collectibles. At present, the circulating supply of CAKE tokens stands at nearly

 is an open source DeFi protocol built of non-custodial liquidity. It helps earn interest on deposits and borrowed assets. Using Aave, you can deposit or borrow a large variety of assets. These include DAI, USD coin, USDT, BUSD, WBTC and many more. Aave gives you access to a market size of more than

$4.1 billion, growing each day. Aave, the native token of the platform, has a circulating supply of nearly 12.5 million. It has a maximum supply of 16 million.

Popular as a derivative liquidity protocol, Synthetix is the backbone for derivative trading in DeFi. It helps you gain on-chain exposure for a wide range of assets from anywhere. The total value locked in Synthetix has already crossed the mark of $2.4 billion. Users can earn rewards by providing collateral to the protocol. Many platforms, including Kwenta, Drudge, ParaSwap, and several projects and interfaces leverage the liquidity of the derivatives enabled by Synthetix. SNX, the native token of Synthetix, has a total supply of a little more than 215 million. The circulating supply stands at nearly

To buy DeFi tokens, you first need to head over to the exchange you choose. The process of buying DeFi coins will differ depending on the type of exchange: centralized or decentralized.

If you want to buy DeFi tokens from a centralized exchange, you will have to sign up for an account by providing your legal name and email address. You will also have to go through a standard know your customer (KYC) process to activate your account. To complete the KYC process, submit your personal details, banking details and a government-issued identity card.

After KYC approval, head over to the trading interface and select the token that you want to buy. If you want to purchase with fiat currencies, deposit funds in your account.

Enter the amount of the token that you wish to purchase and click on the trade confirmation button.

After you click on the buy button, the fiat amount equivalent to the total value of DeFi coins you bought will be deducted from your fiat wallet on the exchange. 

There is no signup or KYC process on a decentralized exchange. The only things that you will need to buy DeFi tokens from a decentralized exchange are a wallet and enough supported crypto funds to exchange against the DeFi token you wish to buy. 

If you have sufficient funds, connect your wallet and log in via the wallet you wish to trade with. Once you log in, the trading interface of the exchange will appear. Select the token you want to exchange, or select the token you wish to purchase. Select them from the relevant drop-down menu.

Now set up your order by choosing either how much you want to spend, or how much you want to buy, by entering the appropriate figure in the relevant field.

At the end of the order menu, the exchange will show you how much you can expect to receive.

If you are content with the figures you see, complete the order by clicking on the appropriate trade confirmation button.

Is DeFi a Better Investment Compared to Other Tokens?

Although it cannot be said in absolute terms that all DeFi tokens rank the same in terms of their utility and value, some DeFi tokens and protocols prove to be better investments compared to others. This distinction stems from the sheer versatility that the DeFi protocols have to offer. The DeFi space provides loads of opportunities for retail investors to generate passive income. DeFi token holders, for instance, can deposit their funds into liquidity pools to earn more. 

Several protocols benefit their token holders with additional facilities such as reduced fees, improved loan-to-value ratios and staking rewards. The more utilities, the greater is the worth of the token.

DeFi encourages accessibility and inclusion. With intermediaries removed, DeFi transactions enable peer-to-peer transactions where banking services are underdeveloped or inaccessible. Since there is no intermediary to intervene, no risk of blocked transactions or revoked accounts arises. One can lend or borrow instantly from a smartphone.

Built on the layer of Ethereum, DeFi networks have verifiable nodes, making them tamperproof.

DeFi applications are innovative and versatile. They make the entire financial system highly flexible where you can trade in divided assets.

Like any other evolving system, DeFi has its drawbacks, too. The entire domain of blockchain technology is going through shifts. These changes often bring instability to DeFi. For instance, protocols changing their consensus mechanisms pose unforeseen risks to DeFi projects.

The host blockchain may not have enough scalability potential. This often creates trouble for DeFi protocols. Transactions take a long time to complete, and become expensive during network congestion.

Flaws in smart contract codes may lead to the loss of funds from the protocols. DeFi protocols also face challenges relating to low liquidity and low interoperability. However, several new protocols are emerging that tackle these issues head-on.

Will DeFi’s Price Continue to Rise in 2021?

Users finding easy and intermediary-free access to loans, insurance, margin trading, exchanges and yield farming will help DeFi to grow in 2021. Several eWallets, the backbones of blockchain transactions, are rising to the challenge to ensure secure, transparent and easy access to funds. The wide range of utility features of these protocols encourage newer investors to join in, and existing ones invest heavily. As a result, a surge in liquidity and trading volume will help DeFi’s prices to rise in 2021. 

A preview of this expected rise is already evident. Let’s compare the monthly trading volume of some of the decentralized exchanges. On April 1, 2020, the monthly volumes of 0x Native, Synthetix, Curve, Uniswap and dYdX were approximately $121 million, $34.5 million, $38 million, $170 million and $123 million, respectively. Within a year, these five DEXs rose to nearly $2.2 billion, $191 million, $4.7 billion, $21 billion and

To reach their maximum potential, the leading DeFi protocols would have to work more on interoperability. They would need to pose a coordinated front in order to become a challenger to the traditional banking system or centralized exchanges. Easy accessibility, enhanced inclusion, autonomy, transparency — these are some of DeFi’s most enticing advantages. The only thing that needs to be done at this moment is for the leading exchanges and protocols to increase their coordination.

Top 8 DeFi Crypto Projects to Invest in for 2022

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards