Elite DeFi 2.0 Coin Investments: Ranking the Best Picks for 2024

DeFi 2.0 is a new concept in the blockchain industry that seeks to improve the existing decentralized finance framework through lower fees, improved scalability, increased liquidity, and cross-chain functionality.

In this guide, we aim to provide a ranking analysis of the best DeFi coins worth investing in in 2024. Let’s learn more about DeFi 2.0 and see what promising projects you should pay attention to.

Best DeFi Coin Ranking

Here is a ranked list of the best DeFi coins to buy in 2024:

• Smog: This new DeFi coin has the potential to generate rapid growth and excitement within the cryptocurrency community, and is soon set to host the largest airdrop event ever.
• Sponge V2: Expands on the foundation built by the original Sponge Coin, offering a new Stake-to-Bridge model, high-yield staking, and attractive P2E games.
• Bitcoin Minetrix (BTCMTX): The new DeFi 2.0 project offers a stake-to-mining model designed to reward BTC mining by introducing various return on investment (ROI) mechanisms.
• Meme Kombat: Introducing a P2E battle arena where popular meme coins appear as characters and engage in battle.
• eTukTuk: Running on Binance Smart Chain, this new project provides an eco-friendly and sustainable solution for tuktuk transportation, especially in developing countries.
• Scotty AI: Combining AI and blockchain to implement advanced cryptographic security and provide innovative solutions.
• Cosmos (ATOM): Cosmos supports DeFi 2.0 projects to provide cross-chain services, a key element of the Web 3.0 economic system.
• Arbitrum (ARB): Arbitrum is a layer 2 solution tailored to the DeFi 2.0 protocol, effectively solving problems related to high fees and limited scalability.
• The Graph (GRT): The Graph addresses blockchain overload, a critical challenge in the DeFi space, by indexing and organizing blockchain data and providing developers with the means to execute queries smoothly and efficiently.
• DYDX:  dYdX is a decentralized platform that provides traders with access to leveraged cryptocurrency products. dYdX is the largest decentralized exchange by trading volume .
• Lido Dao (LDO): Lido Dao is used as a DeFi 2.0 token of the Lido Staking Protocol. This initiative gives investors the opportunity to stake Ethereum 2.0 without having to meet the existing minimum of 32 ETH.
• OKB (OKB): This DeFi 2.0 project specializing in Web 3.0 products such as staking, savings accounts, and liquidity farming operates within OKX’s ecosystem powered by OKB tokens.

Overview of How DeFi 2.0 Works

Decentralized finance (DeFi) has become an important element of the evolving Web 3.0 economy. Simply put, this sector eliminates the need for intermediaries such as banks, lenders, and centralized exchanges.

DeFi allows investors, regardless of their budget, to use existing financial services without relying on intermediaries. However, DeFi 1.0, the early version of decentralized finance, is not without drawbacks.

This includes:

• Liquidity Issues: DeFi 1.0 platforms have been experiencing ongoing issues related to liquidity due to fragmentation issues. Users had difficulty exchanging tokens on decentralized exchanges due to a lack of liquidity, which often prevented transactions from taking place smoothly. DeFi 2.0 solves these problems by implementing a cross-chain bridge, allowing the platform to integrate liquidity from various providers.
• Fee Dilemma: Most DeFi 1.0 platforms primarily operate on the Ethereum blockchain, but in recent years network congestion has led to unrealistic GAS fees. DeFi 2.0 solves this problem by leveraging layer 2.0 solutions such as Arbitrum or Polagon. Additionally, it contributes to reducing fees by using more efficient networks such as Solana or Cardano.
• Scalability: Blockchain congestion in DeFi 1.0 led to transaction scalability issues, slowing transaction processing times and resulting in increased fees. DeFi 2.0 solves this problem by implementing layer 2 solutions like those mentioned above.
• Cross-chain functionality: The DeFi 1.0 platform allows token swaps within the same blockchain. For example, the Ethereum-based platform supports ETH, USDT, and other ERC20 tokens. On the other hand, DeFi 2.0 improved functionality by enabling cross-chain token swaps, such as exchanging BNB for BTC or LTC for ETH.
• Efficient data management: As interest in decentralized finance grows, DeFi 1.0 protocols are overflowing with transaction data. And this in turn exacerbates scalability, fees, and speed issues. DeFi 2.0 protocols, such as The Graph’s blockchain indexing tool, efficiently solve these problems, allowing developers to query and manage data seamlessly.

DeFi 2.0 has successfully solved numerous problems, but there are still many more issues that need to be addressed in the future. Nevertheless, because DeFi 2.0 is still in its early stages, growth investors are continuously looking for promising DeFi 2.0 tokens as investment targets.

This approach gives investors early access to DeFi 2.0 before it becomes widely adopted.

In the next section, we compile a ranked list of the best DeFi coins for investors to consider and analyze each token.

Best DeFi Coins Ranking – In-Depth Analysis

To successfully navigate the DeFi 2.0 environment, investors must thoroughly research their chosen cryptocurrency 2.0 coin. This includes assessing how the project solves the problems of DeFi 1.0, its viability, and its long-term price potential.

In the next section, we will take a closer look at the ranking of the best DeFi coins in 2024 and basic information about each project.

1. Smog – New Defi Coin Scheduled for Large-Scale Airdrop

Smog ($SMOG) is a new DeFi coin built on the Solana blockchain and is currently considered the best presale alternative. In February 2024, Smog carried out a so-called ‘fair launch’ by skipping the pre-sale stage and listing directly on Jupiter, a decentralized exchange.

$SMOG tokens can be purchased using Ethereum or USDT on the Jupiter DEX exchange, which has recently recorded more trading volume than Uniswap, or on the Smog official website. Staking is currently in progress, and annual returns of approximately 42% can be expected.

$SMOG soared more than 1,300% in just 24 hours after launch, skyrocketing its market capitalization from $2 million to over $28 million. SMOG investors automatically accumulate airdrop points just by holding tokens in their wallets, and with these points, they receive rewards and have the opportunity to participate in community bounties. Additionally, the Smog team plans to provide investors with ways to accumulate more airdrop points by introducing additional quests and challenges in the future.

The Smog Team has not yet provided specific information about the date of the airdrop. However, it was confirmed that 490 million tokens, equivalent to 35% of the total supply of 1.4 billion, will be allocated as airdrop rewards. Additionally, Smog secured an additional 700 million tokens for project marketing purposes.

In the long term, Smog has ambitious plans to become the largest DeFi coin based on the Solana blockchain. To this end, 15% of the token supply was allocated for CEX and DEX listing.

For more information about the Smog token, please refer to the white paper, or follow Smog X (formerly Twitter) and join the Telegram channel to receive the latest news.

Visit Smog Presale Now

Cryptocurrency is an investment product with no significant volatility and regulation.

2. Sponge V2 ($Sponge V2) – An Upgraded Version of Sponge Coin that Offers P2e Gaming and 40% Staking Apy

Sponge V2, an upgraded version of Sponge Meme Coin, is a new coin that maintains a strong position in the industry with a market capitalization of $16 million and a community of over 11,500 token holders. As the previous work, Sponge Meme Coin, showed tremendous records, rising from a market capitalization of $1 million to a whopping $100 million, Sponge V2 is also preparing to improve its predecessor and provide new opportunities to existing and potential investors.

The core of SPONGE V2 is the stake-to-bridge model, which uses a strategic mechanism that allows $SPONGE holders to stake V1 tokens and convert them to V2. Staked V1 tokens are locked for 4 years and offer an attractive annual return of 40%.

As stated in the white paper, Sponge V2 aims to achieve a market capitalization of $100 million, and to this end, it is preparing to be listed on major exchanges such as Binance and OKX.

In addition to listing, Sponge V2 aims to give true utility to meme coins by building an ecosystem centered on the SpongeBob SquarePants meme. The project’s P2E racing game development, scheduled for release in 2024, is expected to increase demand for $SPONGE V2.

Building on the solid foundation laid by Sponge V1, the project team is committed to building a community through an active marketing strategy to surpass previous achievements.

For a limited time, investors who have acquired V1 tokens can stake them to acquire V2 tokens, potentially doubling their investment ahead of the expected exchange listing.

Investors can actively participate by continuously updating exchange listings and development milestones through X (formerly Twitter), Telegram, and Discord channels.

3. Bitcoin Minetrix – Defi 2.0 Platform Via Ethereum, Launch of 2,563% Apy and Innovative Btc Cloud Mining System

Bitcoin Minetrix ($BTCMTX) introduces a new approach in the special market of Bitcoin cloud mining. It is the world’s leading stake-to-mining ecosystem, providing a simple and accessible means for anyone to accumulate Bitcoin mining rewards.

Through the ERC20 proof-of-stake mechanism, users can stake   $ BTCMTX coins to generate cloud mining credits, which are then used to acquire BTC.

The entire process takes place through a user-friendly interface, allowing individuals to comprehensively supervise mining operations. The interface includes key metrics such as ‘Mining Credits Earned’, ‘Mining Power Purchased’, and ‘Total Power Received’.

It also provides a clear overview of daily, weekly, and monthly BTC profits, likening it to a streamlined mining operation tailor-made for individual investors.

Bitcoin mining involves significant costs, including hardware purchases that traditionally cost thousands of dollars, and requires expertise and financial resources. Additionally, the impact of mining on the environment is well known. However, Bitcoin Minetrix does not have this drawback.

With an upfront investment of just $10, you can purchase without any experience. Users can participate in the investment without having to purchase hardware or install any software other than connecting to the pre-sale through MetaMask. Additionally, the underlying blockchain, Ethereum, is recognized as environmentally friendly, and this DeFi platform currently offers generous APY rewards of 2,563%.

Participants in this campaign can earn through price increases, staking, or BTC mining rewards, giving them three ways to earn a return on their investment.

This pre-sale offers additional benefits as you can purchase it at a discounted price of $0.011 compared to the final price of $0.0119. In addition, security was further strengthened by receiving a passing score after a thorough third-party smart contract audit.

Bitcoin Minetrix, operating in a niche market with few competitors, is a highly balanced DeFi platform that has the potential to make a major impact in 2024 by being the first in the world to introduce a stake-to-mine model via Ethereum.

To find out more about this platform, you can follow our social media channels (Twitter and Telegram) and take a look at our whitepaper.

4. Meme Kombat – Offers High Apy and Earns Cryptocurrency through Play

Meme Kombat ($MK), unlike existing meme coins, is emerging as a top competitor among cryptocurrencies by building an ecosystem that can generate profits through staking and in-game betting.

The project has already raised over $2.25 million in just 7 weeks of pre-sale. The core of Meme Kombat is a battle arena where avatars symbolizing popular meme coins compete against each other.

Participants can use $MK tokens to participate in game battles between their favorite meme characters. Games take place in various modes, including player vs. player mode and player vs. game mode, and the battle results are decided on-chain for transparency and fairness.

In addition to predicting the overall outcome of the battle, you can also participate in specific situations, movements, and various battle events. Additionally, despite being a meme coin, Meme Kombat boasts a significantly low token supply of 120 million.

Half of the token supply is allocated to the ongoing presale, where investors can currently purchase $MK for $0.214 per token. Tokens acquired during the pre-sale period are automatically entered into a staking contract. Investors who stake in the pre-sale can expect a high APY of up to 400%.

According to the Meme Kombat white paper, the game where you can earn money by playing in the battle arena will be released in a season format. In particular, this project stands out in that the founder’s information is publicly available, which is rare in meme-centered projects.

In the first season, various battle modes and leaderboards will be introduced. More information about this project can be found through social media channels such as Telegram and Twitter.

5. eTukTuk – An Eco-Friendly Cryptocurrency Project to Build Electric Vehicle Stations for Tuktuk Drivers

eTukTuk (TUK) is an emerging eco-friendly project that successfully raised $540,000 in its presale phase and offers staking rewards with an impressive CAGR of 390%.

Over the past five years, eTukTuk has been working diligently to develop a network of charging stations to reduce air pollution and lower carbon emissions.

Currently, 270 million tuk-tuk vehicles rely on internal combustion engines (ICE), causing more serious air pollution than regular cars. Moreover, as these internal combustion engine vehicles age, tuk-tuk drivers are having difficulty making a living. eTukTuk’s goal is to build a variety of electric vehicle supply equipment (EVSE) compatible with eco-friendly vehicles (ZEV) to solve these problems.

In particular, eTukTuk, which focuses on developing countries by establishing a base in Colombo, Sri Lanka, aims to install EVSE while minimizing manufacturing and operating costs through collaboration with local partners.

Each EVSE will be strategically placed within a designated region, and local partners will be responsible for installation, operation, and maintenance. Once operational, Tuk-Tuk drivers will be able to pay at charging stations using $TUK tokens.

Local partners are incentivized by receiving a commission for each new payment made at the charging station. Additionally, token holders can contribute to sustaining EVSE and potentially earn high annual returns by staking $TUK to power nodes.

Holders of eTukTuk’s staking tokens can expect higher annual returns as the number of transactions taking place at charging stations increases. Running on Binance Smart Chain, known for its energy efficiency and scalability, eTukTuk aims to reduce costs for both drivers and users.

To get comprehensive insights about this new cryptocurrency platform, you can review the Etuktuk whitepaper and join our Telegram channel to receive regular updates.

Visit eTukTuk Presale Now

Cryptocurrency is an investment product with no significant volatility and regulation.

6. Scotty AI – Best New Project that Raised $100,000 in 24 Hours of Presale Launch

Scotty AI ($SCOTTY), at the intersection of artificial intelligence and blockchain technology, is dedicated to enhancing security and integrity in the cryptocurrency space. Our primary goal is to establish ourselves as a leader in the cryptocurrency industry by providing cutting-edge AI-based solutions for security, fraud detection, and risk mitigation.

Scotty AI’s notable features include advanced AI capabilities that can analyze complex blockchain data and detect complex patterns. With the ability to remember every transaction, block, and hash ever created, Scotty AI demonstrates rapid agility and navigates the digital world to mitigate risk with precision and precision. By utilizing AI-based fraud detection algorithms to identify suspicious transactions and network anomalies, it shows the potential to attract attention as a virtual currency asset in the future.

Scotty is committed to transparency and community-driven development. The project team relinquished ownership of the token contract and empowered $SCOTTY token holders to co-create the future of the cryptocurrency platform. The soon-to-be-launched Scotty Swap tool will provide seamless last-mile token swaps, improving liquidity through a user-friendly interface.

Another feature coming soon, ‘Scotty Chat’, serves as an interactive platform for community engagement. This chatbot allows users to inquire about blockchain technology, code issues, and complex algorithms, contributing to a deeper understanding of the cryptocurrency world. Scotty Chat uses natural language processing (NLP) to answer questions with human-like accuracy.

Scotty token ($SCOTTY) is used as the main utility and governance token with a total supply pegged at 1,234,567,890. This scarcity sets $SCOTTY apart from other cryptocurrencies and meme coins that have an infinite supply, making it an attractive option for investors seeking a limited supply of tokens. The ongoing pre-sale of $0.005 per token has raised more than $100,000 in just a few days after launch, demonstrating the project’s popularity.

30% of the total token supply has been distributed for the ongoing pre-sale, and the remaining 70% is allocated for development, staking, marketing, and future exchange listing. Staking rewards provide over 346 million tokens, and investors can earn passive income over the next three years, highlighting the project’s long-term investment potential.

Investors who want to enter the project early and enjoy more price appreciation potential can review the white paper and join the official Telegram channel to receive the latest updates.

Visit Scotty AI Presale Now

Cryptocurrency is an investment product with no significant volatility and regulation.

7. Cosmos (Atom) – Enhancing Cross-Chain Defi 2.0 Protocol through Interoperability

Cosmos is attracting attention as a representative DeFi 2.0 project focusing on blockchain interoperability. Essentially, the Cosmos ecosystem facilitates communication and data sharing between different blockchains. For example, DeFi 2.0 applications running on the Ethereum network can seamlessly transact with projects on the Binance Smart Chain.

This opens up a new realm of possibilities and solves some of the problems inherent in DeFi 1.0. Existing DeFi platforms only allow token exchange within the same blockchain. For example, on an Ethereum-based platform, users could exchange EHT for USDT, but not for BTC or BNB. This is because the DeFi 1.0 ecosystem was not designed with interoperability in mind.

In contrast, Cosmos allows users to transact across different blockchains, overcoming the limitations of the DeFi 1.0 ecosystem, which lacked unique interoperability features. DeFi 2.0 platforms can now leverage the Cosmos Protocol to scale operations across multiple blockchains, token standards, and consensus mechanisms. Importantly, Cosmos users have control over governance and autonomy. Cosmos operates in a decentralized manner, so there is no need to rely on third parties or escrow.

Cosmos’ native utility token is ATOM, which is essential for those using Cosmos for cross-chain services to pay transaction fees. ATOM is also considered one of the best staking coins, giving holders the opportunity to generate passive income. According to CoinMarketCap, Cosmos’ market cap is over $3 billion, down 70% from its peak of over $11 billion during the bull market.

Therefore, those who invest in Cosmos today can receive a large price discount. For those who want to purchase Cosmos, OKX is considered the most suitable option. The exchange supports more than 350 cryptocurrencies and is recognized for its user-friendly interface, social trading features, and competitive fees.

8. Arbitrum (Arb) – Layer 2 Solution for Defi 2.0 Ecosystem

As mentioned earlier, the DeFi 1.0 ecosystem faces efficiency issues, and Arbitrum provides the optimal solution. Simply put, Arbitrum serves as a layer 2 solution for the Ethereum blockchain and all ERC20 tokens. Any decentralized finance project using the ERC20 standard can seamlessly connect to the Arbitrum network. This allows DeFi 2.0 projects to benefit from ultra-low fees, fast transactions, and highly scalable infrastructure.

Although estimates may vary, Arbitrum is said to be capable of processing up to 40,000 transactions per second. On the other hand, according to ETHTPS, DeFi projects on the Ethereum network can only process about 29 transactions per second. This is not sufficient for DeFi projects considering the number of transactions generated. Therefore, Arbitrum plays a pivotal role in mitigating transaction fees in the DeFi 2.0 ecosystem.

Arbitrum reported that its network has already saved more than $1.8 billion in GAS fees for ERC20 projects. Importantly, the project proves this claim by successfully connecting more than 200 ERC20 tokens to the Arbitrum ecosystem. This includes various DeFi protocols such as UniSwap, Chainlink, Dai, Maker, and Curve DAO.

In terms of performance, Arbitrum’s native token, ARB, was listed on the exchange in April 2023. ARB was one of the most anticipated launches in recent years, but its performance has been relatively stagnant. ARB, which was initially listed at $1.18, is currently trading at $1.09, down 7% from its launch price. Arbitrum’s market capitalization is just over $1 billion.

9. The Graph (Grt) – Blockchain Indexing Solution for Defi 2.0 Projects

The Graph is another innovative project that provides pre-built solutions for DeFi 2.0 tokens. This solves the blockchain congestion problem of DeFi 1.0 projects that are struggling to manage the increasing number of smart contract transactions. This congestion leads to slow transaction speeds and inefficient data processing.

In the DeFi 1.0 ecosystem, a separate transaction is required for each transaction, such as token swapping, depositing funds in a staking pool, and using yield farming tools. Many of these transactions contribute to network congestion despite providing minimal value. The Graph aims to streamline this process and increase overall efficiency.

Graphs play an important role in solving these problems. ‘Indexing’ data in the DeFi ecosystem effectively organizes and sorts blockchain data, eliminating confusion and facilitating seamless information requests. Simply put, developers can use The Graph’s services to efficiently search and query blockchain data. To access these services, developers must pay a fee, which can be paid in GRT, The Graph’s native token.

According to CoinMarketCap data, GRT launched at $0.12 per token in late 2020 and has seen an impressive 1,800% rally during a broad bull market, reaching a high of $2.30. However, GRT has since undergone a correction and is currently trading at $0.10, providing an attractive entry point for investors. If GRT returns to its previous high in the next bull market, it could record an increase of more than 2,000%.

10. Dydx – Leveraged Cryptocurrency Derivatives in a Decentralized Economic System

DX, a leader in the DeFi 2.0 project, is reorganizing the virtual currency trading environment. Specializing in leveraged cryptocurrency derivatives, an area traditionally dominated by centralized platforms such as BitMEX and Bybit, dYdX takes a decentralized approach based on Starkware.

It is a layer 2 solution for existing blockchains, facilitating scalable, fast, and cost-effective transactions. Through integration with Starkware, dYdX offers commission-free trading, and its leveraged products are based on decentralized perpetual contracts. The platform boasts access to a rich liquidity pool and ensures efficient trade execution with minimal slippage.

dYdX offers up to 20x leverage on dozens of supported cryptocurrencies, including Bitcoin, Ada, Solana, Polygon, Chainlink, and Dogecoin. Another advantage of the DeFi 2.0 trading platform is that withdrawals can be processed immediately. Utilizing a layer 2 solution, dYdX ensures that withdrawals take just minutes to reach traders’ cryptocurrency wallets.

In accordance with the concept of DeFi 2.0, dYdX operates without Know Your Customer (KYC) procedures. Users can transact anonymously by simply providing their email address during the registration process. For those interested in investing in the future of DeFi 2.0 trading, DYDX tokens support the dYdX platform and can be traded on exchanges such as OKX, which boasts a user-friendly interface and strong security.

11. Ldo – Ethereum 2.0 Staking Solution for General Investors 

Lido DAO provides a DeFi 2.0 solution for individuals interested in Ethereum 2.0 staking. Typically, investors must stake at least 32 ether when participating in the Ethereum blockchain. At the current ETH/USD price, this would require significant capital of over $57,000, an unrealistic amount for many cryptocurrency investors.

Lido DAO solves this problem by allowing users to stake any amount they want. Additionally, the protocol stakes tokens directly on the Ethereum blockchain, eliminating the need to rely on centralized third parties such as exchanges.

Lido DAO offers a 3.8% Annual Percentage Yield (APY) on Ethereum deposits. The platform paid out more than 341,000 Ethereum as staking rewards, and it is reported that more than 7.3 million Ethereum is staked through the protocol. This equates to more than $13 billion at current prices.

Lido DAO’s governance is supported by its native token, LDO. This DeFi 2.0 token has seen extreme volatility since reaching its peak above $6 in late 2021. However, according to CoinMarketCap data, it fell to below $1 in early 2023. Currently, LDO is trading at nearly $1.90, which represents a 90% year-on-year growth.

12. Okb (Okb) – Decentralized Wallet Securing Liquidity from Over 200 Pools   

OKB is used as the native token of the OKX exchange. OKX is famous for being a centralized exchange, but it also provides a decentralized wallet ecosystem. OKX wallets operate independently and do not have access to users’ private keys. This solves several problems prevalent in the DeFi 1.0 environment.

OKX Wallet provides cross-chain functionality, allowing users to trade tokens on over 50 blockchain networks. This includes popular networks such as Ethereum, Polygon, Binance Smart Chain, and Avalanche. OKX has also developed a bridge aggregator that provides prices from over 200 liquidity pools.

This means that the OKX wallet not only ensures users receive the optimal exchange rate when swapping tokens but also guarantees the highest APY for yield farming. For example, when choosing USD coins, OKX tells you that Compound offers the highest APY at 12.15%. Users can participate in interest farming and earn profits directly within their OKX wallet. Additionally, OKX has introduced strong DeFi 2.0 security protocols into the ecosystem.

One of these security features is support for multi-party computation (MPC) in the wallet. Simply put, there is no need to secure your private keys because your wallet credentials are distributed across multiple locations, including your device. Investors can purchase OKB tokens to gain exposure to OKX’s DeFi 2.0 ecosystem.

Choosing the Best DeFi 2.0 Coin

There are numerous DeFin 2.0 coins on the market, some with much better prospects than others.

Therefore, experienced investors should use a variety of strategies, such as looking at the Define coin rankings, when constructing a portfolio.

Below are some useful tips for choosing and investing in the most promising DeFi 2.0 projects.

DeFi 1.0 Solution

A good starting point is to evaluate how projects have improved on the shortcomings of DeFi 1.0.

An important initial step is to evaluate how the project addresses the limitations of DeFi 1.0. For example, Arbitrum improves the operational efficiency of ERC20-based projects, providing a cost-effective and highly scalable alternative to high GAS fees and transaction limits.

Likewise, Cosmos is introducing cross-chain functionality for DeFi 2.0 projects, enabling token swaps across multiple blockchains, a feature that is not present in DeFi 1.0 platforms.

And there is Lido DAO, which removes the entry barrier for Ethereum 2.0 stakers. Instead of relying on the existing 32 Ethereum requirements or centralized alternatives, Lido DAO allows investors to stake as much Ethereum as they want.

Ultimately, finding the best DeFi 2.0 projects should focus on practical solutions. Success will depend on significantly improving the problems inherent in DeFi 1.0.

Decrease in Market Capitalization

Some of the best DeFi 2.0 coins have seen unprecedented declines since the peak of the 2021 bull market. There was a significant decline, which reflects a broader trend across the cryptocurrency industry. Therefore, many DeFi 2.0 coins are currently trading at significant discounts, which can be an attractive entry opportunity for investors.

For example, Cosmos, which boasted a market capitalization of over $11 billion at the end of 2021, saw its value fall to $3 billion as market volatility intensified. This represents a significant discount of 70% for investors currently considering investing in Cosmos.

How is cryptocurrency market capitalization calculated?

• The market capitalization of a virtual currency project refers to the value of the project.
• This figure is calculated by multiplying the current market price of the cryptocurrency by the total number of tokens in circulation.
• For example, GRT tokens are currently trading at $0.10.
• With 9.5 billion GRT tokens in circulation, GRT’s market capitalization reaches $950 million.

Likewise, Graph was worth more than $5.7 billion at the end of 2021. The current market capitalization of the project is less than $1 billion. This can be seen as representing a discount of more than 80%.

Although future value increases cannot be guaranteed, investors are rushing to purchase DeFi 2.0 coins at discounted prices. Investors are actively purchasing DeFi 2.0 coins at discounted prices. This is due to expectations that DeFi 2.0 coins will grow significantly when the next bull market begins.

Newly Released Defi 2.0 Project

Some investors prefer early-stage DeFi 2.0 projects that have not yet been listed on cryptocurrency exchanges. The advantage of this approach is that investors can participate in and be exposed to DeFi 2.0 projects from an early stage.

When entering the market, most DeFi 2.0 projects typically begin raising funds through pre-sale campaigns, often offering discounted prices as compensation for the initial investment.

As mentioned earlier, Bitcoin Minetrix is ​​one of the best DeFi rankings. The project has generated significant interest within the DeFi 2.0 community and presents an attractive use case for real-world Bitcoin mining.

How does the DeFi 2.0 presale work?

• Through presale ( also known as ICO ), newly launched DeFi 2.0 projects can secure funds from investors.
• The project typically offers native DeFi 2.0 tokens at a pre-sale discount.
• In return, investors make pre-sale purchases using key cryptocurrencies such as ETH or USDT.
• This helps DeFi 2.0 projects by providing them with essential working capital.
• When the pre-sale ends, investors receive tokens and the project lists the tokens on a cryptocurrency exchange.
• Presales basically provide an opportunity to see the most promising cryptocurrencies before they are released to the general public.

Although presales come with inherent risks, they are an attractive option for investors who want to purchase DeFi 2.0 coins before they become popular.

What are the Advantages of DeFi 2.0 coins?

For investors who are still unsure whether DeFi 2.0 coins are the right investment choice, below we outline some of the key benefits of investing in this niche.

Premium Liquidity

The biggest drawback of DeFi 1.0 is that liquidity is limited because each decentralized exchange operates independently. This structure limits the liquidity available to exchanges within a particular platform, making it difficult for investors to trade tokens, especially in large quantities.

In contrast, DeFi 2.0 platforms solve this problem by integrating external liquidity pools. This means that exchanges can access liquidity from a variety of sources, and traders can execute token transactions smoothly without slippage.

Improved DeFi Yields

One notable feature of DeFi 1.0 is the ability to monetize dormant cryptocurrency tokens through a variety of tools such as yield farming, staking, and savings accounts. However, because each DeFi 1.0 platform offered different rates of return, investors had to take time to compare options.

In contrast, DeFi 2.0 platforms can aggregate returns from external sources. A representative example is the OKX wallet, which has a built-in bridge that integrates returns from over 200 places. This allows investors to conveniently access the highest interest rates from one platform.

Increased Efficiency

The DeFi 2.0 platform solves the transaction inefficiencies seen in DeFi 1.0. Many DeFi 1.0 platforms are built on the Ethereum blockchain, but as mentioned earlier, Ethereum has a limited capacity of only 29 transactions per second.

These inherent limitations cause Ethereum to continually operate near maximum capacity, slowing transaction speeds and increasing fees. It is important to remember that all decentralized finance activities such as token deposits, transfers, withdrawals, swaps, and staking require transactions on the blockchain.

To overcome these limitations, the DeFi 2.0 platform implements a layer 2 solution. For example, several popular DeFi protocols have integrated with the Arbitrum Network to significantly lower fees and enhance scalability to process more than 40,000 transactions per second. These improvements directly benefit investors, because investors typically have to pay gas fees when using DeFi products.

Cross Chain Function

The DeFi 2.0 protocol promotes the interoperability of goods and services across multiple blockchains. This feature, commonly referred to as ‘interoperability’, allows various blockchain networks to communicate with each other and share data.

What is a cross-chain bridge?

Cross-chain bridges play an important role in the DeFi 2.0 environment by allowing platforms to execute transactions on different blockchains. This feature allows users to seamlessly perform operations such as exchanging ERC-721 NFTs for BEP-721 NFTs or exchanging Bitcoin for XRP. The advantage of cross-chain bridges is that they work in the background, streamlining tasks without the need to use multiple platforms.

This provides many benefits to investors.

For example:

• Let’s assume that an investor holds XRP tokens in his personal wallet.
• This investor wants to use XRP tokens to invest in the Wall Street Memes presale, which only accepts ETH and USDT.
• Typically, investors must transfer XRP to a cryptocurrency exchange and then exchange it for EHT or USDT. Then, you must withdraw the converted funds back to your personal wallet.
• However, using a DeFi 2.0 wallet like OKX with cross-chain capabilities, investors can instantly exchange XRP for ETH or USDT, even if they operate on different blockchains.
• Additionally, OKX Wallet aggregates prices from over 200 locations to ensure users receive the most favorable exchange rates.

The cross-chain feature is also useful for yield farming in cryptocurrencies that use different token standards. Let’s assume a scenario where an investor holds both ETH and BTC.

Investors can receive a portion of the trading fees generated by donating equal amounts of ETH and BTC to the liquidity pool to optimize returns.

What is the Difference Between Defi 1.0 and Defi 2.0?

Above all, both DeFi 1.0 and 2.0 provide investors with decentralized access to financial services, eliminating the need for personal information, KYC documents, and credit checks. It is also inclusive so that investors of all budget sizes can trade, monetize, and lend money.

In other words, DeFi 2.0 is a step forward by solving many of the problems found in DeFi 1.0. As explained earlier, the DeFi 1.0 platform lacked liquidity, which hindered users from efficient trading. Additionally, transactions in DeFi 1.0 were limited to the same blockchain network.

Additionally, DeFi 1.0 relied heavily on the Ethereum blockchain, resulting in high fees, transaction delays, and scalability issues. DeFi 2.0 addresses these issues through improvements such as increased liquidity, cross-chain functionality, and implementation of layer 2 solutions for scalability and cost efficiency.

Due to these developments, the DeFi 2.0 investment environment is gaining popularity. As explained in our previous guide on choosing the best DeFi 2.0 projects, building a portfolio of DeFi 2.0 tokens is a simple way to participate in this evolving space.

Conclusion

DeFi 2.0 represents an exciting evolution in the blockchain space that provides opportunities for investors of all sizes to participate in decentralized finance. A notable DeFi 2.0 token for growth-oriented investors is Smog. It is currently offering attractive APY rewards and is expected to attract great interest from community participants as the largest airdrop event in the Solana blockchain is ahead. In this airdrop, a total of 490 million tokens will be distributed to $SMOG holders.