Top Seven (7) DeFi Tokens to Invest in 2022

A Comprehensive Guide To Decentralized Finance (DeFi)

In recent years, the decentralised finance (DeFi) market has generated much interest from crypto enthusiasts and attracted investors worldwide. In its simplest form, DeFi is a term used for financial applications built on blockchain technology – designed to democratise the economic landscape by replacing centralised institutions.

Today, DeFi platforms can offer you a full range of financial services – from trading, borrowing, lending, decentralised exchanges, asset management and more.

The most popular DeFi platforms have developed their own native tokens to facilitate their operations and motivate users.

In this article, we will discuss what DeFi tokens are and the top seven top tokens to invest in 2022.

What are DeFi tokens?

A Decentralized finance token (DeFi token) transfers value in financial transactions. These tokens are often created to run their own unique native blockchain network. These differences are huge when compared to traditional financing.

However, DeFi tokens are widely known for their various uses within their native network. For example, some of these DeFi tokens are governance tokens that grant voting and management rights to the users who own them.

Top seven (7) DeFi Tokens to Invest in 2022

The top seven DeFi tokens to invest in 2022 are listed below:

  • Aave (AAVE): Aave is an open-source DeFi platform used as a crypto lending service. The non-custody liquidity protocol allows you to earn interest and lend your crypto assets. This DeFi platform was first introduced to the cryptocurrency market in 2017.

AAVE tokens can be deployed over the protocol to improve their security and performance. Additionally, you can enjoy staking rewards and discounted fees on the Aave platform.

Any holder of AAVE tokens can enjoy numerous benefits. For example, if an AAVE borrower makes a tokenised loan, they will not be charged any fees and receives a discount on other fees within the platform.

Additionally, if you want to borrow Aave, you can deposit tokens as collateral that will allow you to borrow more money. DeFi tokens have several selling points – due to their real-world utility in an increasingly crowded crypto lending market.

  • Uniswap (UNI): Uniswap is a decentralised exchange currently dominating the DeFi market. It uses an automated market maker system (AMM) to ensure sufficient liquidity for the ERC20 tokens traded on its website. The Uniswap protocol has attracted a loyal following due to its crypto-asset solutions. It gives you complete control over your private keys, integrates with external wallets, and allows you to transact with low fees.

The UNI token was introduced by the Uniswap protocol in September 2020 – as a means of rewarding its users.

It is also one of the best DeFi tokens in valuation, with a market cap of over $6.7 billion. When you buy UNI, you also get bonuses and discounts from the Uniswap protocol. For example, depending on the size of your UNI holdings, you can vote on different policies proposed for the Uniswap ecosystem.

  • Yearn.Finance (YFI): Launched in early 2020, Yearn.Finance aims to generate high returns for staking Ethereum, stablecoins, and other altcoins. The protocol does this through a feature it calls “vaults,” which help reduce the high cost of Ethereum transactions.

The platform’s primary purpose is to allow users to optimise all their earnings from crypto assets through lending and trading services.

This DeFi platform has gained more attention in the market with the launch of the YFI token. DeFi token market cap is currently at $724 million.

  • Terra (LUNA): Terra is one of the pioneers of the DeFi market, popping up as DeFi based on its current market cap of $28.8 billion.

Terra is a simple digital ledger that works with the help of stablecoins. It helps monitor the current cost of fiat currency by offering a range of stablecoins.

The elusive nature of this price is then accepted by LUNA, the currency of Terra. With this mechanism, buyers can now analyse LUNA prices while taking advantage of yield farming, staking, etc.

All of these properties together make LUNA a promising long-term investment in 2022.

  • Avalanche (AVAX): Avalanche is the top contender for the best DeFi token investment. The token competes directly with Ethereum due to lower transaction costs and faster transaction speeds. The token claims to be the fastest smart contract platform in the crypto and blockchain industry.

Avax recently raised $230 million to support its project and made significant connections to other blockchain projects, including Graph, Chainlink, and SushiSwap. The token is gaining ground, and the interest it is gaining in this space will surely be the best contender to invest in 2022.

  • Chainlink (LINK): Chainlink is arguably the most widespread decentralised oracle network in the DeFi market today. It feeds real-world data into smart contracts on the blockchain, acting as a link between the unprecedented amount of information moving back and forth between crypto DApps. The provider also released its own native token, LINK, which has several functional utilities on the platform.

Chainlink has seen significant growth since its launch in 2019 due to the increasing popularity of decentralised platforms. It has grown to the point where it can fund other cryptocurrency initiatives that could be valuable to the Chainlink ecosystem.

Over the years, Chainlink has proven to be one of the best DeFi platforms to stay relevant in the industry. LINK will be able to offer other DeFi developers additional flexibility when it comes to expanding the capabilities of its DeFi platform. Taking these aspects into consideration, the LINK token is arguably one of the best DeFi tokens to consider in 2022.

In terms of market cap, LINK is one of the most popular DeFi coins right now – with a valuation of $6.43 Billion. Many expect this uptrend to continue over time.

  • Fantom (FTM): The last but not the least on our list is FTM; Fantom offers attractive features that will make it a big deal in the blockchain industry.

Unlike other DeFi tokens mentioned in this list, FTM is the first of its kind to create a DeFi stack with a DAG (Directed Acyclic Graph) based on smart contract strategies.

With it, users can easily borrow, lend, buy, or sell any synthetic resource. The FTM, currently valued at $4.05 billion, also comes with a top-notch app that allows users to make more money from their current cryptocurrency.

It has seen high trading volumes lately. This trend will continue in 2022 as tokens become more popular in the crypto industry. FTM is a viable token to invest in in 2022 and expect good returns.


All cryptocurrencies are risky investments, but DeFi has some specific risks, scams and fraud.

There are prospects for increased regulation in 2022. Regulatory authorities fear that various decentralised finance products are acting as pseudo-banks with no banking controls. The regulation will affect the entire cryptocurrency industry but could have a significant impact on the decentralised finance sector

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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