3 Smart Cryptocurrencies to Buy Before the DeFi Renaissance Skyrockets

One of crypto’s most transformative innovations is decentralized finance (DeFi), a system that allows users to access financial services such as lending, borrowing and trading directly on the blockchain, without intermediaries such as banks. DeFi took center stage during the last crypto bull market, leading to massive adoption and growth. However, in the current cycle, DeFi has lagged behind somewhat.

But there are signs that this is starting to change. As interest rates fall, traders may be more inclined to take on additional risk, and with an influx of liquidity, a DeFi revival could be on the horizon. If you want to invest in the best DeFi projects, look no further than these three outstanding cryptocurrencies.

1. Creator

Creativethe entity behind MKR (MKR -6.12%) token, is one of the most prominent and innovative protocols in DeFi known for creating youa decentralized stablecoin. Dai is unique in that it maintains its peg to the US dollar through over-collateralization, meaning users deposit assets such as Ethereum or other cryptocurrencies to beat DAI. This mechanism allows Dai to function independently of traditional financial systems, providing a truly decentralized and stable currency for the DeFi ecosystem.

Maker has been a pioneer since its launch in 2017 and over the years has become one of the most tested and trusted DeFi projects, boasting a total value locked (TVL) of over 5.6 billion dollars, making it one of the largest protocols in the DeFi space.

In many ways, you could think of Maker as the central bank of DeFi. Just as traditional central banks manage fiat currencies, Maker oversees the supply and stability of Dai through its innovative collateralized debt system. However, unlike traditional central banks, Maker holders benefit directly from the protocol’s profitability.

Through Maker’s buyback and burn model, surplus revenue generated by the protocol is used to buy MKR tokens on the open market and burn them, reducing the total supply. This creates a deflationary effect, which can increase the value of each MKR token over time. As a result, MKR holders gain a stake in the success of the Maker ecosystem, giving them exposure to the growth and profitability of the protocol, a feature that traditional central banks do not provide to their stakeholders or citizens.

2. Have

If Maker is the central bank of crypto, then ensue (AAVE -10.90%) would be the most popular commercial bank in DeFi. Just like a traditional bank allows users to deposit money and obtain loans, Aave allows users to deposit crypto assets to earn interest or borrow from their holdings. Since its launch, Aave has become a cornerstone of DeFi with over $12.5 billion in Total Value Locked (TVL) and nearly $20 billion in user deposits on its lending markets. Its success is driven by its ability to provide secure, permissionless lending, allowing users to interact with a global pool of liquidity without relying on traditional financial intermediaries.

Aave’s wide availability on more than a dozen blockchains solidifies its position as the go-to platform for decentralized lending and lending. It has expanded its reach to networks such as Ethereum, Avalancheand Polygonproviding essential functionality to the wider DeFi ecosystem. As a critical infrastructure layer for the emerging decentralized economy, Aave’s lending markets are vital for liquidity and capital efficiency.

Investing in Aave is akin to owning shares in one of the most popular and essential banks in the crypto world, providing exposure to the future growth of the protocol as DeFi continues to expand. Not to mention that a proposal to implement a buyback program could support Aave’s price well into the future.

3. Aerodrome

While Maker and Aave focus on lending, there is another crucial pillar in DeFi: Decentralized Exchanges (DEX) and here Financing of the Aerodrome (AERO -10.99%) come into play.

The airfield is a DEX built on Coinbase Globalhis (NASDAQ: Coin) proprietary blockchain, Base, which has quickly become one of the most popular chains in the DeFi space. As Base has grown in prominence, Airfield has benefited significantly from increased usage, now being the most valuable protocol on Base. It has become the main hub for traders looking to trade tokens on this fast-growing blockchain, providing liquidity and enabling seamless token exchanges.

What makes Aerodrome particularly attractive to investors is its innovative, flywheel-like business model. By adopting and improving features from other successful DEXs, Aerodrome shares all revenue with token holders.

Users can lock their AERO tokens to receive veAERO, giving them access to a larger portion of the platform’s transaction fees. This creates a self-reinforcing cycle: as liquidity providers earn more rewards, it attracts more liquidity, which in turn generates higher fees and higher rewards for AERO holders. Although just over a year old, with Base growth accelerating, Aerodrome is well positioned to continue its upward trajectory, making it a serious contender in the DeFi landscape.