Top 5 Best deFi Stocks to Watch in 2024

Brandie E Blackler
10 Min read

You may have come across the term ‘deFi’, which is short for ‘decentralized finance’. 

As the rise of cryptocurrency has dominated the market over the past five years or so, the development of deFi, or decentralized finance, is imminent. So, what are the top 5 best deFi stocks to watch in 2024?

In this article we will explore the potentially best deFi stocks and hence deFi companies to watch in the year 2024, while also summarizing in more detail why this sub-trend of the crypto world is on the rise. 

Sounds interesting? Let's get started!

What is deFi (Decentralized Finance)? 

As in direct relation to cryptocurrency, deFi describes the offering of various financial instruments without the intermediary need of a traditional bank, brokerage or exchange.

Another relative term, dApps, or decentralized applications, can give more insight into how deFi works, exactly. 

How can this be made possible? How can you execute any sort of financial transaction without this traditional kind of intermediary? 

Given the rise of blockchain technology, more specifically, smart contracts, much more banking activity is taking place without the use of traditional banking entities. And hence, the concept of deFi is born. 

Ethereum (ETH) has without a doubt been the main driver behind the rise of deFi, as the Ethereum blockchain is arguably the very first chain to popularise smart contracts. 

With many deFi platforms, tokens and otherwise coming to life, more modern-thinking individuals are looking to the option of banking with deFi.

Naturally, there is always an element of risk which comes with stepping away from the traditional banking structure. Many deFi applications promise high-interest rates, however, the risk of banking with them is also at an increased rate. 

With the risks of going all in with this new form of banking known, that is not the only way you can take part in this burgeoning financial trend.

Naturally, rather than banking directly with deFi platforms, you can find potential in the listed deFi companies and currencies which promote such, as we will outline. 

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What is the Difference Between deFi and Crypto? 

Cryptocurrency and deFi cannot be grouped in the exact same definition, but are very much hand in hand within the same matrix – the matrix being the blockchain. 

Moreso, cryptocurrency is within the umbrella of deFi; decentralized finance covers all financial services executed within the various public blockchain networks.

For example, the Ethereum blockchain would house the transactions made – and Ether would be the cryptocurrency used in order to do so. 

Naturally, this concept of cryptocurrency, blockchain, ledgers, and hence deFi are relatively new, meaning the overall definition of such may also evolve over time.

What are the Top 5 Best deFi Stocks to Watch in 2024? 

While the globe as a whole pays more attention towards blockchain solutions, one can only imagine that the popularity of deFi will continue to grow, along with cryptocurrency. 

At this point in time, below we will summarize some of the potentially best deFi stocks to watch throughout 2024.

Each will be reviewed based on its short- and long-term investment potential according to current market conditions. 

1. Riot Blockchain Inc (RIOT) 

Yet another sub-niche within the cryptocurrency arena, cryptocurrency mining will likely continue to grow in popularity and importance.

Riot Blockchain Inc supports Bitcoin mining via large-scale mining facilities across the US. Let’s take a look at both its trading and investment potential: 

  • RIOT’s price is very much tied to the price of Bitcoin, giving traders additional insight into patterns and how they can plan their positions for short-term trading. 
  • While RIOT feels exciting for investors, it is highly volatile and considered a high-risk stock – which is likely not ideal for the long term. 

Blockchain stocks like RIOT provide investors with an alternative way to participate in the thriving cryptocurrency evolution (opposed to buying or trading cryptocurrency or crypto CFDs). 

Do you see RIOT as a top deFi stock contender? Invest in RIOT today via our Invest.MT5 platform. 

2. Canaan Inc (CAN) 

Somewhat competitor to RIOT, Canaan Inc is another crypto-mining play that may be interesting to traders and investors looking to diversify in deFi companies.

This public company focuses on the high-computing solutions needed to solve the complex queries involved in crypto mining. 

  • With a current 52-week range of $1.13 - 3.98 (January 2024), given the right monitoring of the stock and risk profile, it may be ideal for day - or swing traders who have knowledge in the blockchain space. 
  • With the company being based in China, long-term investment potential is highly risky, considering China’s stance on crypto (however, the company could technically diversify outside of this sector). 

As with many companies in this new and evolving economic space, Canaan Inc could be a hit (or a miss). 

What’s your opinion on CAN as a top deFi stock? Invest in Canaan Inc today via our Invest.MT5 platform. 

You can gain access as an Admirals client to 3,000+ stocks, ETFs and more via the innovative Invest.MT5 platform – Click the banner below to gain access: 

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3. CoinBase Global Inc (COIN) 

CoinBase has remained one of the most popular and trending publicly traded companies within the deFi world, as it remains to be one of the most popular cryptocurrency exchanges (while it has also had its fair share of media controversies).

  • With a 52-week range of $46.43 - 187.39 (as of January 2024), this shows the high volatility of the COIN stock - presenting both challenges and opportunities, depending on the risk profile and trading style of each individual.
  • Given the cryptocurrency market and overall sector is facing much criticism, this could prove to be challenging for the company in the short term.

See the below chart via the TradingView widget to view the Daily fluctuations of the COIN ticker:

 *Past results are not applicable to future price predictions. 

Do you see COIN as one of the top 5 best deFi stocks to watch? Trade the COIN CFD today or Invest. 

4. ProShares Bitcoin Strategy ETF CFD (BITO) 

The launch of the very first Bitcoin ETF was big news for the crypto community earlier in 2021.

This event marked a new move towards Bitcoin and cryptocurrency becoming a more mainstream investment vehicle.

  • With a 52-week range as of January 2024 of $12.06 - 23.83, and a current price around $15 per share, this could be a good entry point for either short- or long-term trades with BITO. 
  • Given current uncertainty and potential regulation of crypto, this can be a downside to the ETF’s success, or also a safe-haven if you wish to have a secure vehicle within the crypto market. 

**Please note, BITO is available to users with Admiral Markets AS Jordan Ltd and Admiral Markets Pty Ltd accounts; you can access this via our Invest.MT5 account

5. Polygon (MATIC) 

 Web3.0 is a big topic at the moment, with all technology trends pointing one way or another in this direction.

Potentially saving the best for last, Polygon is the ultimate scaling platform for Ethereum's dApps – likely one of the biggest current drivers behind deFi as an ecosystem. 

  • MATIC’s price point fluctuates within $0.78 -1.00 at the moment (January 2024), making it affordable for various strategies and positions, whether that be short- or long-term. 
  • Polkadot, Chainlink and Cardano are all in competition with Polygon, which is a definite risk to consider when mapping out any kind of strategy with this kind of asset group.

Are you bullish on Polygon (MATIC) as one of the top 5 best deFi stocks to watch in 2024? You can Trade with the MATIC CFD today at Admirals. 

*Please note, cryptocurrency CFDs are only available to accounts registered with Admiral Markets Cyprus Ltd and Admiral Markets AS Jordan Ltd.

Best deFi Stocks to Watch: Are deFi Stocks a Buy?

As with any new vertical or sub-vertical in the markets, time will always tell which companies (and currencies) will take the lead for both the short-term and the long-term. 

DeFi, like many other related industries, is very much in development, and this must be considered when choosing whether or not to trade or invest in the potentially best deFi stocks for 2024. 

As you have learned in this article, the potential of deFi goes beyond only investing in the publicly traded companies within the industry; you also have the options of ETFs, currencies, and surely, more will arrive as the industry matures. 

What do you think of these top 5 best deFi stocks to watch in 2024? 

If you have further interest in the cryptocurrency market, let us remind you that you can trade cryptocurrency CFDs with Admirals:

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What are the top deFi companies to watch?

While this kind of question is always subjective, some of the leading deFi companies in 2024 include Riot Blockchain Inc, CoinBase Global Ltd and Canaan Inc, among others.

 

What are the top deFi coins?

Also a subjective answer, some of the top deFi coins may include Uniswap (UNI), Polygon (MATIC), Ethereum (ETH) and Chainlink (LINK).

Other articles you may find interesting:

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets and Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following: 

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 

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3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest. 

4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on Brandie E Blackler, Financial Analyst personal estimations. 

5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 

6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 

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