During the early days of cryptocurrency, crypto investments were dominated by mavericks, but they have now been accepted in the financial mainstream. Big banks and institutional investors now view cryptocurrency as a serious asset despite showing high volatility and going through major crackdowns by regulatory bodies.
To know how volatile cryptocurrency is, consider this:
Since April 11, Bitcoin value had ranged from a low of $28,893.62 to a high of $68,789.63 within a year. Despite the huge volatility, crypto lovers are actively looking for the next big pay-off.
A number of decentralized finance (DeFi) cryptocurrency have also outperformed the blue-chip ones. For example, Kyber Network Crystal (KNC) surged by 490% YTD, and DeFi coin (DEFC) rose by 160% during this week. Ethereum and Bitcoin, the perceived leaders in the cryptocurrency market, rose by 6% and 5% respectively in the past 24 hours.
The Wednesday FOMC (Federal Open Market Committee) assembly concluded on March fifth with the cryptocurrency market pumping. Jerome Powell also announced that the Federal Reserve would raise interest rates by 50 basis points. One basis point is equivalent to a hundredth of a percent, which means that Fed raised the interest rates by 0.5%.
After the last FOMC meeting, when the team raised interest rates by 25 basis points, the cryptocurrency market also reacted to Fed’s decision to combat inflation rates. Some cryptocurrency traders have referred to the FOMC event of this week as a “sell the rumor, buy the news” meeting where recession fears were already “priced in” and the markets were more likely to rally upside.
Which Defi Coin is Set to Explode in 2022?
If you are looking to buy cryptocurrency in 2022, you should buy the one with the potential to bring you the highest returns. But which cryptocurrency is that? Bitcoin may be the obvious choice for most cryptocurrency investors, but it’s not necessarily the best cryptocurrency to buy in 2022.
You may have better chances of a huge payoff with a smaller coin that has not been pumped up like Bitcoin. With Ethereum ahead of Bitcoin and ETH/BTC trading pair showing an upward trend, there is a potential for an “altcoin season, most probably for Defi coin.
The following are the most promising DeFi Coin in 2022:
- DeFi Coin (DEFC)
This cryptocurrency exploded on Wednesday, recording an intraday move of about 300% from the daily low to high. It then stabilized at around $0.24.
Its previous all-time high of $4 was listed on the Bitmart cryptocurrency exchange on July 2021. It retraced by 98.75% to $0.05, its presale price, before bouncing.
DeFi Coin’s upward trend can be as a result of the accomplishment of some of its key milestones like the DeFi Swap exchange v3 and the farming pool.
The FOMC meeting concluded on Wednesday might also have played a role in this.
DeFi Swap is a decentralized cryptocurrency exchange platform and a competitor to platforms like Sushiswap, Uniswap, and Pancakeswap.
- Kyber Network (KNC)
KNC has the same use case as DeFi Coin related to decentralized crypto swaps and liquidity pools, connecting cryptocurrency traders and investors without the need for an intermediary.
KNC has proved that DeFi coin can show a bullish trend despite macroeconomic conditions even when cryptocurrency markets are bearish. Its price rose from a January 2022 low of $1.18 to $5.77, a 490% move.
KNC has retraced from that high and it’s now trading at $3.6 on most cryptocurrency exchange platforms including Coinbase, eToro, Binance, CoinMarketCap, and Crypto.com.
KNC has shown its use case since its launch in 2017, and it’s now listed on most cryptocurrency exchange platforms. The value of this cryptocurrency is most likely to rise if listed on more cryptocurrency exchange platforms.
- Ethereum (ETH)
Holding a portion of your portfolio in Ethereum is a good way of diversifying your investment and reducing risk instead of overinvesting in one or two cryptocurrency with a low market cap.
Arthur Hayes, the CEO of Bitmex crypto exchange, has predicted that ETH price will hit $10,000 before the end of 2022 or early 2023.
The previous Bitcoin halving event caused an upward move from $10k Bitcoin to the $69k ATH. The next Bitcoin halving is expected to happen in mid of 2024.
Thus, those are the top 3 Defi Coin to buy in 2022.