- What is DeFi
- Top 3 DeFi marketplaces to keep an eye on
- Top 5 DeFi tokens by market capitalization of 2021
The new era of development, use of blockchain technology, in the finance sector has certainly left all of us in amazement. . While the world is still in the initial stage to understand decentralization, several use-cases are already making a place for themselves. Decentralized marketplace being one of them. As we grow our knowledge about what DeFi is, it is equally important for us to simultaneously evaluate its use cases.
The decentralized marketplace allows cryptocurrency users to directly communicate with each other without the intervention of a middleman. Now and then a new DeFi marketplace is built on a defi project. However, it is important to do thorough research before diving into any defi crypto project or defi marketplaces.
Therefore, before diving into the top DeFi marketplaces let us understand the advantages of Decentralized finance over a centralized marketplace.
Centralized marketplace vs Decentralized marketplace
|Presence of middlemen||No middlemen|
|Risk of a data breach||Completely transparent and immutable|
|Possess the power to regulate the type of product sold||The power lies in the hands of the users|
All traditional marketplaces are centralized in nature. The centralized marketplace often has middlemen who charge exorbitant fees while allowing these transactions. They possess complete control over the data on their platform which apart from giving them immense power also makes them a prime target for security breaches. Now and then we come across a data breach that puts the centralized marketplaces in tough positions.
However, the important question is how are DeFi marketplaces better? There are no middlemen in the case of decentralized finance markets or exchanges (DEX). The users are directly connected to the potential buyers or sellers through the software. It is not controlled by any centralized entity with no rules governing the marketplace. These rules make it completely visible and transparent. The function of immutability also makes the system unique and transparent.
Top 3 DeFi marketplaces
Type of application
|OpenBazar||P2P||It does not have any native defi token but allows cryptocurrency exchanges of 50+ coins including Bitcoin, Zcash, Litecoin, etc.||Allows transactions with Zcash, a privacy coin, that protects your transaction details.|
|OpenSea||P2P||LAND and ETH||NFTs or non-fungible tokens are primarily traded here. Users can even buy and sell Land on OpenSea using LAND, a native token of Decentraland.|
|Particl||P2P||PART||The native defi token, PART, is atomic swap compatible. This means that the token does not have to go through exchanges while being moved from user to user. Merchants can increase their profit margins up to 40% on Particl.|
*Prices are as of July 2021
It is a P2P application that directly connects sellers with their buyers. It is the fork of the ‘Dark Market’ defi project which was born during a hackathon in 2014. Some of the key features about the marketplace are:
|It’s a simple plug and plays software|
|Different items are available on the marketplace apart from cryptocurrencies.|
|Data sharing/tracking is a choice for the users.|
|Allows transactions with Zcash, a privacy coin, that protects your transaction details.|
|Accepts more than 50 cryptocurrencies such as bitcoin, Litecoin, Zcash, etc.|
|Bitcoin’s Escrow feature is used for payment.|
|Direct payments are also possible when both the buyers and sellers are online and there is a direct transaction of coins between the parties.|
|Offline payments are also allowed where the funds enter a temporary escrow account where both the buyers and sellers can interact at any time. The seller either accepts or rejects the offer. If rejected, the buyer can take back the fund after paying the escrow fees.|
It is an Ethereum-based blockchain marketplace for cryptocurrency goods such as game items or collectibles(NFTs). Smart contracts are created between the buyers and sellers that allow the transactions. Some of the key features of this blockchain marketplace are:
|NFTs or non-fungible tokens are primarily traded here.|
|User-friendly and safe and secured to use.|
|Free listing of items. Once sold, a nominal fee of 2.5% is charged from the seller.|
|Users can freely enter their bids|
Particl is a DeFi marketplace and is one of a kind. It was created to build decentralized, peer-to-peer, and completely autonomous cryptocurrency marketplaces. The native defi coin for this marketplace is PART. It is also a fork of another privacy coin defi project, ShadowProject.
Some of the unique features that have earned fame for this innovative marketplace are:
|User data is neither available on the server nor is shared with third-party sites.|
|Transactions are completely anonymous and private.|
|It is a completely decentralized and trustless economy.|
|User-friendly and very simple to begin with.|
|Merchants can increase their profit margins up to 40% on Particl|
|The native token, PART, is atomic swap compatible. This means that the defi token does not have to go through exchanges while being moved from user to user.|
|Privacy is ensured by PART with the help of crypto technologies such as RingCT|
Top 5 DeFi tokens by Market capitalization
The average price for Uniswap in the year 2020 was $5.15 while it reached $21.49(24 hours high defi token price) as of 7th July 2021. The all-time high price for this defi token was $45.01 as of 3rd May 2021. The all-time low value of this popular defi token was $2.95. Looking for an easy way to buy and sell defi tokens? CoinDCX Go is one of the simplest and easiest crypto investment apps.
The average price of Chainlink in the year 2020 was around $16.16 while it reached a value of $19.26 (24-hr high defi token price) as of 7th July 2021. The all-time high price for this defi token was $52.43 as of May 2021. It had $0.418 as its all-time low price in the year 2017.
The average price of DAI in the year 2020 was around $1.01 while it reached a value of $1(24-hr high defi token price) as of 7th July 2021. The all-time high price for this defi token was $52.43 as of May 2021. It had $0.418 as its all-time low price in the year 2017.
The average price of Maker in the year 2020 was around $618 while it reached a value of $2,755 (24-hr high defi token price) as of 7th July 2021. The all-time high price for this defi token was $6292 as of May 2021. It had $168.36 as its all-time low price in March 2020.
The average price of Aave in the year 2020 was around $94.23 while it reached a value of $274.75 (24-hr high defi token price) as of 7th July 2021. The all-time high price for this defi token was $661.69 as of May 2021. It had $26.02 as its all-time low price in November 2020.
Average price 2020
24-hr High price 2021 (07 July’21)
|Uniswap||$5.15||$21.49||$45.01 (May 2021)||$2.95|
|Chainlink||$16.16||$19.26||$52.43 (May 2021)||$0.418 (2017)|
|Dai||$1.01||$1||$1.22(March 2021)||$0.903(November 2020)|
|Maker||$618||$2,755||$6292 (May 2021)||$168.36(March 2020)|
|Aave||$94.23||$274.75||$661.69 (May 2021)||$26.02( November 2020)|
The Final Takeaway tokens
Blockchain technology has numerous use cases. Every new Defi project is unique and so are the defi tokens. While a few decentralized marketplaces allow you to buy and sell defi tokens and cryptocurrencies tokens, there are a few that allow the buy and sell of collectibles such as NFTs. As an investor, one must be very careful of the decentralized marketplace one chooses for their transaction.
An investor must also be aware of the top defi tokens by market capitalization and the top defi marketplaces to invest in. We have already done the hard work. Now, it’s time for some smart work.
Wondering how, to begin with? This list of top defi tokens by market capitalization is good for any crypto enthusiast, to begin with. Wondering where to buy and sell defi tokens and other cryptocurrencies? CoinDCX is one of India’s largest crypto exchanges with its own simplest crypto investment app, CoinDCX. Happy investing!