Best DeFi tokens to buy in 2023

• Decentralized Finance saw significant outflows in 2023.

• DeFi tokens also dropped sharply during the year.

• The collapse of centralized companies could make DeFi more attractive.

Decentralized Finance (DeFi) came under intense pressure in 2022 as the crypto industry recoiled. Some of the biggest cryptocurrency news of the year was the collapse of FTX and Terra. As a result, the total value locked (TVL) crashed from over $250 billion to just $60 billion. In this article, we will look at some of the best DeFi tokens to buy in 2023.

GMX | GMX

GMX is a leading decentralized exchange (DEX)  in the Arbitrum and Avalanche. It is a DEX that makes it possible for users to trade perpetual contracts and buy spot tokens. GMX has handled billions of cryptocurrencies in the past few months. Its total value locked (TVL) has surged to more than $802 million, making it the 17th biggest DeFi in the world.

GMX price has bounced back from its lowest level in 2022 as it took advantage of the collapse of FTX. There is a likelihood that the token will continue rising in 2023 as it becomes more mainstream. Analysts expect that the collapse of centralized platforms like Voyager Digital, Celsius, and FTX will lead to more strength of DEX platforms like GMX.

How to buy GMX

AAVE | AAVE

AAVE is one of the biggest DeFi protocol in the world with a TVL of over $5.8 billion. It exists in several blockchains, including Ethereum, Polygon, Optimism, and Arbitrum among others. Aave is a lending platform that makes it possible for users to earn interest, borrow assets, and build applications. 

Aave’s Community Treasury holds over $113 million worth of assets, including AAVE, USDC, Dai, and USDT. These funds come from the reserve factor, instant liquidity fees, and portal fees among others.

Aave is a good investment because of its strong market share in the DeFi industry and its room for growth in 2023. Also, it has emerged from this year’s sell-off almost unscathed.

How to buy Aave

Uniswap | UNI

Uniswap is the oldest decentralized exchange (DEX) in the world. It is a major platform that raised over $160 million from investors at a valuation of over $1.6 billion. Uniswap makes it possible for people to buy, sell, and trade digital coins. It recently introduced the ability to buy Non-Fungible Tokens (NFT).

Therefore, as a leading DEX, Uniswap will likely continue doing well. In my view, I suspect that well-capitalized DEX exchanges like Uniswap will continue thriving in the long term. Further, Uniswap has not experienced substantial outflows in the past few months.

How to buy Uniswap