Decentralized finance (DeFi) has seen enormous growth over the few years of its inception. There has been a proliferation of decentralized applications such as decentralized exchanges, liquidity protocols etc.
Nevertheless, there’s still more to go. Crypto analyst Micheal van de Poppe has predicted that the decentralized finance (DeFi) market could experience a breakout in 2024.
Therefore many investors have their eyes out for the best DeFi tokens with massive growth potential within the year. If you’re one of those looking for the best tokens to invest in, you have come to the right place.
In this guide, we name the top five DeFi tokens with the greatest growth potential in 2024. They have been selected because of their design, what they have to offer that makes them relevant.
Stacks is a Bitcoin Layer 2 blockchain network designed to bring scalability and reduce transaction fees on Bitcoin. The token has recorded impressive growth over the past several months, probably fueled by a comment that venture capitalist Tim Draper made.
Tim said applications built on Bitcoin will replicate the performance of Microsoft applications in the internet boom. While the price has increased by 60% in the last month, analysts still see huge growth potential in this hidden gem as we proceed into 2024.
One evidence of growth that could soon reflect in the price is that the total value locked (TVL) recently surged above $55 million. Also with the Bitcoin halving drawing near, anything connected to Bitcoin could be having a filled day, so STX is expected to have its own fair share of growth.
THORChain is a DeFi project that is laser-focused on development. This is what has driven its rally in 2023, making it one of the best performing crypto assets in the course of the year. Because of the focus on development, analysts still see a massive potential for growth in this gem.
The team recently announced that they aim to become the next $1 billion TVL crypto. The project already has a TVL of $130 million according to data from DeFiLlama. As the project continues to develop new projects to hit this milestone in 2024, it is bound to see greater adoption.
This will in turn lead to an increase in the value in terms of price. To hit $1 billion from $130 million is a long way, so this presents a great opportunity to grow with the project in its target.
Pullix is a game changer in the DeFi landscape, which gives it an edge that makes it rapidly popular. It is a new exchange that allows users to trade not just crypto but also other assets such as forex, commodities, and ETF.
The platform also offers customers perpetual futures, CFDs, and a secure vault for cryptocurrency storage. Users can also engage in staking to earn rewards as well as contributing to liquidity pools to earn from transaction fees with exceptional interest rates. Users can earn as much as 8-18% interest annually.
Users can also engage in copy trading which allows new traders to copy the trading strategies of pro traders. The DeFi swap technology provides seamless token trading with low fees.
Pancakeswap is the largest decentralized exchange on Binance Smart Chain (BSC). Its native token, CAKE was one of the best performing crypto assets in 2023, and still holds great potential in 2024.
The platform provides liquidity through automated market markets. The DEX als runs on Aptos and Ethereum now, giving it wider reach. Because it is powered by BSC, it offers lower fees than Uniswap or any other DEX on Ethereum.
CAKE is used as a governance token, but also as an incentive to turn liquidity providers into market makers. The project also recently expanded into gaming with the launch of “Pancake Mayor” which is expected to draw users from the gaming world, hence giving the token a wider user base, hence value.