2 Breakout Cryptocurrencies to Buy Now and Hold
Decentralized finance (DeFi) applications make it possible to borrow, lend, trade, and earn interest on cryptocurrency without involving a bank or brokerage. And by eliminating those third parties, DeFi promises to make the financial system more efficient. For example, you could earn a 3.2% annual percentage yield (APY) by lending Tether -- a stablecoin designed to track the U.S. dollar -- to the Compound protocol right now. But the average bank currently pays an APY of just 0.06% on money kept in a savings account.
Not surprisingly, DeFi has captured the attention of many. In the past year, the dollar value invested in DeFi across all blockchains rose 1,400% to $257 billion. As that trend continues, Solana (CRYPTO: SOL) and Avalanche (CRYPTO: AVAX) are well-positioned to benefit, thanks to the blazing transaction speeds made possible by their innovative consensus mechanisms.
Here's what you should know.
Source Fool.com
