In the world of cryptocurrency and blockchain technology, decentralized finance (DeFi) is considered to be the next big thing. The crypto industry consists of several projects, including Avalanche (AVAX), Chainlink (LINK), and the developing Blockonnect token, seeking to improve financial service delivery.
For starters, DeFi is a catch-all phrase for a variety of apps that eliminate the middleman in financial services. With greater adoption, more applications, and more funding, it has kept gaining ground.
Nevertheless, DeFi, in some ways, involves the overall cryptocurrency market. After all, the purpose of the Bitcoin Blockchain was to enable decentralized payments. However, Avalanche (AVAX), Chainlink (LINK), and Blockonnect are more DeFi specific, and here’s why they are worth keeping an eye on.
Avalanche (AVAX) is one of the many Ethereum (ETH) alternatives that attracted massive interest in 2021 as investors and developers were searching for quicker, less expensive blockchain ecosystems. It is a reliable project with opportunities for cryptocurrency users and also has a good management team.
Avalanche (AVAX) is notable for its market capitalization and total value locked (TVL), that is, the total money locked on its platform. Its AVAX token is currently among the top 13 cryptocurrencies in the market, trading at around $29.
AVAX holders can benefit in a variety of ways, such as by lending liquidity to the network. Users’ benefits will increase in proportion to the number of AVAX tokens they own. One can also earn incentives in addition to holding AVAX by operating a validator node or staking tokens in one of Avalanche’s several dApps.
Chainlink (LINK) is a decentralized oracle protocol that provides data needed for smart contract execution. It is a platform that enables blockchain platforms to securely interact with accurate and reliable data collected from external sources.
Note that smart contracts are very little pieces of code that run automatically under certain predetermined conditions. For instance, if someone purchases insurance against terrible weather, the smart contract would pay out if those weather conditions occur. Without the data collected by oracles, smart contracts would not be able to determine when to trigger.
Interestingly, Chainlink (LINK) dominates the oracles market. Many leading DeFi platforms rely on Chainlink’s oracle data for smart contract execution.
The platform’s native LINK token is currently hovering around $9, and investors’ sentiments are currently bullish.
Blockonnect is a simplified blockchain platform that seeks to offer an ecosystem for decentralized crypto transactions and exchange. It aims to serve as an ideal starting point for new crypto traders while also offering extensive services for experienced traders.
Blockonnect will feature a digital wallet that will allow users to buy, trade, store, invest, withdraw, and spend Ethereum and crypto holdings on the move. Users will also be able to stake ETH for rewards as high as 10-30% APY and stake the platform’s token for 15% rewards.
Furthermore, Blockonnect will incorporate an NFT marketplace where users can safely create, buy, and sell NFTs. Users can also access additional services, including auction listing, governance procedures, and transaction history monitoring, among others.
The platform will run with the support of the Blockonnect token. The token will employ a 5% token burn mechanism to ensure that demand is higher to supply to boost value.
There is no end in view for decentralized finance. Instead, more projects will develop new applications to make financial transactions more decentralized and simplified. Avalanche (AVAX) and Chainlink (LINK) are currently delivering values to users, as Blockonnect sets to offer DeFi users access to a variety of services through a simple and accessible platform.
Consider buying units of the token through their website for a chance to make potentially massive gains.