Trader Ben Armstrong from Bitboy Crypto shares with his subscribers the top DeFi coins with the best upside in price action for the rest of this bull run.
Yearn Finance (YFI)
The analyst says that he has been a fan of Yearn for a while, not just because it is a great project that has a laser focus on its fundamentals, but because its token is so unlike anything else in the cryptoverse.
“When Yearn made the YFI governance token, they intentionally made a very limited supply of only 36,666 YFI,”
Armstrong suggests that the limited market cap is the main driver for YFI into the tens of thousands of dollars, at times, surpassing Bitcoin in value. At the time or recording, the price of one YFI is about $40,000.
Importantly, the crypto KOL notes that the market cap of Yearn is still quite low, just at $1.5 billion, compared with another DeFi heavyweight Aave, which is sitting at $5 billion.
“If YFI was to get close or surpass Aave’s market cap, the price of a YFI coin would reach a staggering $151K. It’s an upside of 270%.”
Compound (COMP)
Compound is one of the DeFi OGs that’s seen ups and downs but mostly up since it came out a year ago.
“There will only ever be 10 million COMP tokens in existence, and at the moment, just over half the total supply is already in circulation. Compound has barely been out a year, and half the supply is gone. Sounds scarce and valuable,”
At the time of the video, COMP was trading at $500. Armstrong notes that as DeFi has not even had its moment yet. COMP still has a lot up upside pontential:
“The volume of DeFi has exploded this year to all-time highs, but we’re still way off from any sort of mainstream acceptance. Its market cap is still ridiculously low at less than $3 billion. If Compound were to climb up the market cap rankings with the rest of DeFi in the next few years, your bag of COMP could easily grow by over 200%. Even a project on life support like XLM has a market cap of $8 billion, so it’s likely that Compound could gain or surpass that in the coming cycle or next.”
The crypto KOL is looking for an $8 billion market cap of Compound, meaning one COMP would be worth $1,500.
Terra (LUNA)
Just last year, Terra went through an audit from CertiK and it passed with flying colors. According to Armstrong, LUNA is highly rated by Tokenmetrics with the potential for massive gains in the short term.
LUNAs are used as liquidity providers for the UST coin, so the fates of both are tied together. Besides that, LUNAs are inflationary and do not have a capped supply, but their value will go up or down with the adoption of Terra.
The trader adds that the Terra is not just a stablecoin. They are heavily integrated with Cosmos and recently in partnership with Mirror Protocol and Anchor Protocol, two big projects with lots of development behind them that solve specific market needs with blockchain tech.
Armstrong says that LUNA is a steal under $20 at the time of this recording and the real gravitational pull of Terra will be felt as DeFi comes into its own and as stablecoins become more and more important to fiat on and off-ramps.
The market cap of Terra is sitting at a respectable $7 billion, but the circulating supply of LUNA is half of its total supply of 900 billion. The crypto KOL expects LUNA token to easily hit $30 to $50 during the cycle, which would be a 200% increase from where it is now.
Aave (AAVE)
Last on the list is Aave (AAVE), the ghostly token that has made solid profits during this bull run.
Armstrong highlights that AAVE has been insanely stable through all this manipulation and volatility:
“It’s one of the best liquidity protocols out there. It offers so much, it only makes sense that it’s become a DeFi powerhouse. You can borrow, deposit, swap tokens, and stake Aave on its dApp. The gains are solid. And its integration with Polygon has really helped the platform to haunt many corners of crypto.”
Aave is a deflationary token that’s capped at 16 million, and its circulating supply is over 81%.
“There isn’t much Aave left out there.”
The crypto KOL notes that its market cap is still low considering how much potential it has and the price of one Aave is well off its all-time high back in May of $666.86. He also says that a little bump in the market cap can make the token price of Aave shoot back up and surpass $1,000 without breaking a sweat, resulting in a gain of 185%.