These two DeFi projects could go parabolic in 2022
Both Comp and Yearn are in the fast-growing DeFi market.
Comp has a bigger ecosystem hence more potential.
Yearn has the advantage of low supply.
Compound is an Ethereum token that enables community governance of the Compounds protocol. The system allows users to supply and borrow tokens at variable interest rates, with holders having the final say on any changes they wish introduced through their delegate representatives voting accordingly when necessary. This gives them power over how things should go in regards to not only what's happening now, but also future developments.
Yearn finance (YFI) is a token that operates the Yearn Finance Platform, which seeks to generate high rates of return for investors by moving funds between decentralized finance ecosystems. It works through optimized yields on existing investments through yield optimization algorithms like those used in banking or insurance sectors.
Which one is a better buy?
Both Compound and Yearn Finance are good investments. They are both targeted at the fast-growing DeFi market. Besides, both of them are trading at a massive discount at the moment.
However, on a purely comparative basis, COMP comes across as a better buy. That’s because it is one of the older DeFi projects in the market. This means once the market turns a corner, more money could flow into the most profitable cryptocurrency.
Compound also has a much bigger ecosystem, which means it is likely to have more organic growth in 2022, and beyond.
That said, Yearn is a pretty good buy too. One of the factors likely to play in Yearn’s favor is its low supply. This could see it record parabolic gains in a very short time once the broader market turns bullish.
With Bitcoin now showing signs of bottoming out, these two cryptocurrencies have very strong chances of exponential gains.