About 10,000 cryptocurrencies create a complex field for investors to choose from. To pick the promising ones, it is worth paying attention to the blockchain segments that show the most dynamic development. The Web 3.0 sphere has been on the lips of crypto enthusiasts for the past few years. At the same time, decentralized finance is its fastest-growing segment. Instead of checking thousands of unpromising tokens, let’s focus on DeFi cryptos with real value for the modern blockchain space.
DeFi Cryptos Changing Finance: Balancer (BAL-USD)
The Balancer (BAL-USD) decentralized exchange protocol is a unique tool for managing digital assets. In March 2020, it started working based on Ethereum, having grown to the level of a leading player by 2024. It owes its position to a well-thought-out and innovative operating model. While most exchanges use order books, Balancer is based on a liquidity pool to facilitate trading. Users trade tokens directly from the pools and fill ERC-20 tokens with liquidity.
The platform has also proven itself as a high-end automated market maker (AMM). Usually, AMM protocols limit pools to two tokens with a 50:50 ratio. But Balancer has expanded this number to 8, giving liquidity providers more flexible conditions. They can customize and control their portfolio by creating pools that tokenize a group of assets or track indices.
The project boasts an automatic portfolio rebalancing option. Thanks to it, pools always reflect the correct value of their underlying assets. Balancer also stands out for its unique pool types. Users can operate smart pools to perform automatic rebalancing. Smart contractors manage this type and can offer dynamic trading commission features.
The engineering and research firm BlockScience developed the protocol back in 2018. Since the Balancer Labs spin-off, the project’s co-founders led the way and guided it to achievements. Fernando Martinelli (CEO) and Mike McDonald (CTO) invited Kristen Stone to join the company. She had extensive experience at Coinbase and helped BAL rise to the top of the DeFi cryptos leaderboard.
Thanks to successful management and technological solutions, the project raised its market capitalization to the level of 2022. It now stands at more than $315 million and shows signs of further growth to surpass the current record of $483.5 million. The project’s token reacts accordingly. Since the beginning of last month, BAL has risen from $3.5 to $5.7.
Lido DAO (LDO-USD)
Ethereum (ETH-USD) owners have been looking for the best staking solution for months. It should help users receive rewards and not lose liquidity. Lido DAO (LDO-USD) became the solution. The non-custodial approach to staking allows users to stake their coins and continue to control them. This goes against most traditional methods, which involve blocking funds.
Along with the extension of the influence zone from Ethereum to Polygon (MATIC-USD) and Solana (SOL-USD), the protocol has increased its user base and shown its openness to new challenges. Now, several first-tier Proof-of-Stake blockchains have access to staking with Lido, and DeFi cryptos owners can increase their wealth.
The LDO token ensures the functioning of the entire ecosystem. Among other things, its usefulness is manifested in the granting of voting rights when making key decisions for Lido. Changes in staking parameters, commission structure, and other important aspects of the platform’s operation are all regulated using the platform’s token.
Since October 2023, the LDO chart has been looking only upward and has not crossed the $1.5 mark even at its lows. The series of higher highs and higher lows has encouraged analysts to be optimistic. In their opinion, the maximum price level for LDO in 2024 could be around $8.62, and the average price is projected to be $7.34 by the end of the year. Given the current value of close to $3.25, investors can expect to double their fortune.
Just (JST-USD)
The Just (JST-USD) platform is built to become a one-stop shop for everything related to DeFi on the TRON (TRX-USD) network. JUST Foundation has created a decentralized ecosystem of innovative solutions for users of this blockchain. Since mid-2020, the project passed through periods of ups and downs but now shows stable positive results.
The project system is based on two tokens: its own JST token and the USDJ stablecoin. The first one serves as a reward. The platform provides these tokens as motivation for participation in mining, various campaigns, or trading, with JST being the key to dApp governance. Unlike centralized projects, it Just puts the power in the hands of the token holders, who may influence the project’s future.
JST effectively competes with other DeFi cryptos due to the wide range of services. From lending stablecoins with JustStable to providing liquidity with JustLend, Just provides users with a comprehensive set of DeFi solutions.
The current JST price is four times lower than the historical high. In 2021, this value reached $0.17. Given the bullish trends and the transition to the phase of altcoins’ dominance, the price record may be updated. The token’s growth from $0.02 to $0.04 in less than two months lays the groundwork for further active rise. With a market cap of $374 million, the last week of JST shows a daily trading level ranging from $65 million to $436 million. This month, the token has already tested the $0.047 mark and shows a repeat of the sharp jump scenario. On March 6, the price difference exceeded 20% in a matter of hours. Investors expecting a repeat of this story continue to accumulate JST in their portfolios.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
