While the year is still very young, it has been one of the most bullish years on record for cryptocurrencies. Apart from Bitcoin (BTC), Ethereum (ETH), and other large-cap cryptocurrencies recording their all-time highest values, DeFi Projects have also increased in number. This surge has, in turn, sent the market into a buying frenzy, as savvy investors look to spot some undervalued crypto assets before they begin exploding in value.
When it comes to assessing the potential value of DeFi projects, one factor stands out — market capitalization. Young DeFi projects with significant potential but a relatively low market capitalization have lucrative opportunities. But it takes extra effort to separate over-hyped projects from the projects with genuine prospects. Let us look at three projects that have fundamentals, community, and necessary products to explode shortly.
Prophecy is similar to Bitcoin, as it provides an entirely new financial ecosystem that aims to resolve some issues with traditional finance. However, its team of developers works anonymously to keep the community at the forefront and build a suite of DeFi financial products for empowering its users.
Unlike some blockchain protocols, which are typically just a copy and paste of an already-existing framework—with a few extra features slapped on top—Prophecy is an entirely original platform built around a novel consensus mechanism known as Proof-of-Committed Decay (or PoCD). This mechanism stimulates the Prophecy economy to remain as liquid as possible while ensuring a balanced supply of PRY tokens to prevent loss of purchasing power.
Interestingly, Prophecy is not just providing a next-generation economic protocol; it is also building different products that leverage this technology to create use-cases for PRY holders. The first of these is already live now — ‘Prophet Pools’ — which essentially yield pools that accelerate the earning process within hours or days.
The team behind Prophecy also plans to release over five different financial solutions by next year, indicating that the DeFi project has big things in store. And with a market cap of less than $2 million, its fundamentals and development rate make it worthy of note.
If you have been in the crypto space for more than a year, you should know how popular decentralized lending and borrowing platforms are. These platforms are used by DeFi traders looking to utilize their long-term positions and borrowers aiming to extract liquidity from their assets. Lenders also use them to earn a safe return on their assets.
However, these open lending platforms are limited by two problems: they do not facilitate undercollateralized loans and often suffer from high gas costs on the Ethereum blockchain.
EasyFi, a modern decentralized lending platform, resolves these challenges by leveraging Polygon’s (formerly Matic Network’s) layer 2 technology to reduce transaction fees and enable borrowers to take out undercollateralized loans via its TrustScore integration.
It also has an incentive mechanism, which rewards users with EASY tokens for using the platform. Users can also stake EASY tokens to earn MATIC tokens, giving users two levels of rewards just for taking out or providing low-interest loans.
EasyFi has a market cap of around $34 million. And with transaction fees now becoming a huge burden to many crypto users, there will likely be an influx of users soon.
Kava is a next-generation decentralized lending platform that aims to bring new flexibility to the market. The network is known for its cross-chain cryptocurrency swapping ability. The platform allows users to swap cryptocurrencies on different blockchains.
Kava’s swapping application called Switch is nearly instantaneous, even across blockchains. Kava also allows lending, and they seek to streamline the decentralized lending sector. This has led Kava to be one of the promising DeFi projects.
Disclaimer: The information contained here does not constitute investment advice or an offer to invest. We strongly advise our readers to research further before investing in any cryptocurrency, DeFi project, or ICO, as LightBlocks Media will not be held accountable for any loss.