Instead of keeping all your crypto assets idle, you can use other ways to grow them. This is called a crypto loan. This investment in the DeFi space of the blockchain works like traditional lending, but there is interest involved. It simply involves lending your cryptocurrency and receiving regular interest returns over time. Not all of these altcoin projects are popular. But the unpopular holds the potential for more earnings in the future.
5 small altcoins with potential
In this context, an analyst analyzed the world of DeFi. Thus, it has identified 5 promising altcoins with low market caps. Valued below $70 million, these altcoins operate in DeFi areas such as crypto lending and receiving. As Kriptokoin.com, we have decided to share the analyst’s list with you.
TrueFi (TRU)
TrueFi is a protocol for creating interest pools for liquidity providers with high annual returns. According to its website, TrueFi allows on-chain unsecured lending. Thus, it maximizes capital efficiency for borrowers and earnings rates for lenders. The first ever on-chain credit ratings fuel TrueFi. The project operates as an unsecured lending protocol controlled by TRU altcoin holders.
It gives TrueFi users the ability to lend without lock-in time and deep exit liquidity. It also allows users to gain ultimate control over your assets. However, it claims to offer one of the highest loan returns in the field. TRU coin is currently traded on exchanges such as Binance, BingX, CoinW, MEXC. However, it is changing hands at $0.06775 with a market capitalization of $37 million.
Alchemix Finance (ALCX)
Alchemix Finance is a community DAO and yield-supported synthetic asset protocol. The protocol provides improvements in the techniques of growing multiple crops through a synthetic altcoin. In the Alchemix protocol, the token represents an exchangeable claim on any underlying collateral. However, the claim is submitted by the investor of the collateral.
According to its website, the DAO will focus on supporting initiatives that will advance the Ethereum community and the Alchemix ecosystem as a whole. No interest is charged on the loan in Alchemix. No recurring fees. Instead, any debt you have is paid immediately with the interest you earn on your balance. ALCX is currently listed on exchanges such as Binance, OKX, BingX and FTX. The token has a market capitalization of $39.9 million and is trading at a unit price of $26.24.
RAMP DeFi (RAMP)
RAMP DeFi enables Ethereum users to interact with the RAMP protocol and increase their returns. Besides, it allows non-Ethereum (ETH) users to stake their tokens on ETH platforms. That is, it works as a decentralized system aimed at improving the adoption of DeFi. RAMP DeFi enables staked tokens to be collateralized from non-ERC-20 staking networks to stablecoin rUSD created on the Ethereum network.
The primary consequence of this is to optimize capital efficiency in the digital assets piling up. Thus, users can simultaneously stack multiple revenue streams, collect staking rewards and unlock liquidity in staked assets. Users can earn high returns from collateral deposited with low interest rates of up to 1% for rUSD borrowing. Listed on Bitrue and Gate.io exchanges, the altcoin is trading with a market cap of $40.6 million and a unit price of $0.085.
bZx Protocol (BZRX)
bZx Protocol is a decentralized protocol for margin trading, borrowing, lending and staking. This protocol also enables the creation of decentralized applications (dApps). Lenders, borrowers and traders can take advantage of a multi-chain DeFi protocol using bZx. According to its website, bZx Protocol provides four core services to its users.
Accordingly, users on the platform; leveraged margin trading, borrowing/lending, and staking. At the time of writing, bZx Protocol has a market cap of around $56.3 million. The unit price of the altcoin project, which is traded on KuCoin, Bitrue and Gate.io exchanges, is $0.10.
Venus Protocol (XVS)
Venus Protocol brings a user-friendly lending and borrowing solution for crypto assets to the decentralized finance (DeFi) ecosystem. Thus, it allows users to quickly borrow against direct collateral while paying less in transaction costs. The protocol has almost instantaneous transactions. Accordingly, it allows users to provide real-time liquidity to credit markets for cryptocurrencies such as Bitcoin (BTC), Ripple (XRP), Litecoin (LTC) and others.
Customers using Venus Protocol to provide liquidity do not need to go through a credit check. They can also get instant loans with the decentralized Venus app (DApp). Since there is no central authority, users are not limited by location, credit scores or anything else. Accordingly, they can always provide liquidity by providing sufficient collateral. At the time of writing, the altcoin is trading on BTCEX, BingX, CoinTiger and MEXC exchanges with a unit price of $5.61. The market value of the token is $68.4 million.
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