Decentralized finance (DeFi) The industry has a variety of innovative ways to generate an attractive return on cryptocurrency investments.
In addition to staking and interest accounts, DeFi yield farming is also a way to make your crypto tokens work for you.
What exactly is DeFi yield farming? DeFi yield farming represents a feature provided by DeFi platforms that allows users to earn interest on their dormant digital assets. This mechanism allows you to secure an attractive Annual Percentage Yield (APY) on the tokens you hold.
To do this, you should choose the best cryptocurrency to use in DeFi Yield farming. In this article, we’ll show you everything you need to know about our top picks and what risks you need to consider.
chain link was one of the best performing cryptocurrencies this month. Despite the struggle of many major crypto assets in the market Chainlink price has seen steady increases in recent weeks. Since the beginning of this month, LINK’s price has increased by 23%.
One of the reasons for the Chainlink price increase is the movement of LINK tokens to exchanges. Technically, a price increase occurs when new LINK supplies hit exchanges and buyers simply snap up the available coins.
LINK’s price is at $7,382 and this unique positive price movement has allowed it to stand out from the crowd this month.
Aave is a credit and lending protocol which has gained popularity in the DeFi ecosystem. Users can earn interest on their assets by lending them or borrowing assets using their existing assets as collateral. It is native token AAVEgrants users governance rights and a share of protocol fees.
Aave has continued its upward trend and recorded significant gains throughout the week. Buyers are actively trying to make profits, accounting for 57.27% of the long/short positions.
There is a recent AAVE price review that suggests a price rally opportunity for bulls. They made the most of it and the weekly chart shows a massive rally. However, buying pressure was evident as the RSI quickly rose to 65.
Last month SPIRIT rose 8.75% and is currently trading at $61.18, with a 24-hour trading volume of $60.68 million.
Uniswap has become an innovative DeFi project as it offers opportunities for traders, developers and liquidity providers.
Interestingly, there are quite a few features in its ecosystem. The Uniswap Foundation has provided grants to 40 projects. In fact, a total of $4.5 million in capital was committed. Additionally, over 1 million Polygon LP positions have been opened at the top of the DEX.
Last week UNI traded between $4.45 and $4.46 and is now trading at $4.29.
Five years after its launch, the number of transactions completed on the network has exceeded 200 million. However, Uniswap has seen a decline in trading volume and user activity in recent months.
With only a few days left for the month, Uniswap has recorded $14.85 billion in trading volume, an 80% decline in monthly trading volume since its peak of $73 billion in March. Despite this, Uniswap’s TVL remains stable.
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