3 Lucrative DeFi Projects with Low Supply & Marketcap To Watch in 2021

3 Lucrative DeFi Projects with Low Supply & Marketcap To Watch in 2021

By kevW!ls0n | coinMANIA | 3 Dec 2020

Do you know why crypto newcomers are more interested in XRP rather than Bitcoin? It’s because of XRP’s price. It looks visually low and many think it can go up as high as Bitcoin. 

They are so wrong. 

Newcomers have no idea about a token's supply. They don’t understand the implications of high or low market caps. And they just don’t know how to determine whether or not a token is overpriced or undervalued. 

So, if you’re a newcomer to the crypto scene let me fill you in on something:

When determining the value of a token don’t just look at its price and go, “oh, the price is low, I could buy lots of these!” Instead, take a look at its total circulating supply and price together to understand its market cap. 

The market cap of a coin is calculated using this formula:

Market cap = Total Circulating Supply * Price of each coin

The reason this is important when valuing a cryptocurrency is that it puts price into perspective. 

For instance, if ‘token A’ has a high price but a low market cap it may be considered undervalued, or worth its value. If ‘token B’ has a high price and a high market cap, it may be considered overvalued, or less valuable than token A. 

Of course, there are other factors involved when valuing a cryptocurrency, but a token’s price in relation to its supply and market cap is a core fundamental factor to valuing crypto. 

Moreover, another thing to keep in mind when valuing cryptocurrency is that % gains is what matters, not the price of the token.

For example, if Bitcoin is priced at $16,000 and it goes up by $2000 while Ethereum’s priced at $400 and goes up $100, who’s the bigger winner in terms of % gain?

While newcomers may think it's Bitcoin, they’re wrong. It’s the Ethereum. In this scenario, BTC went up 12.5% while ETH went up 25%. 

That said, % gain, total supply, and market cap is what matters, not solely the price of the token.

Now that we have an understanding of how to properly value a token, I want to share with you some undervalued tokens that are priced high, yet their total market cap is low which means there is still plenty of room to grow.

Let’s get to it.

YFI - 30,000 Total Supply


Yearn.Finance website homepage

Current price: ~ $30,000
Mcap: $861,254,126 USD
Max. Supply: 30,000 YFI

$YFI might look expensive because it’s priced higher than BTC, but take note of the fact that there are only 30k YFI tokens out there vs 21M of BTC.

Why should you pay attention to YFI? 

Yearn Finance (YFI) – otherwise known as Yearn, yEarn Finance, or yearn.finance – is a simple yield aggregator of lending platforms that rebalances yield farmer portfolios for the highest yield. 

It’s one of the top 10 leading DeFi projects with nearly $500M total value locked (TVL) in its protocol and it continues to innovate and move the Ethereum DeFi space forward. And yes, I do strongly believe it's still massively undervalued. 

Here are the latest happenings with Yearn Finance (YFI):

  • Oct 19, 2020 - Yearn launches Keep3r Network (source)
  • Nov 23, 2020 - Yearn launched Deriswap (source)
  • Nov 24, 2020 - Yearn integrates with Argent (source)
  • Nov 24, 2020 - Yearn merges with PickleFinance (source)
  • Nov 26, 2020 - Yearn merges with Cream v2 (source)
  • Nov 28, 2020 - Yearn merges with Cover (source)
  • Nov 30, 2020 - Yearn merges with Akropolis (source)
  • Dec 1, 2020 - Yearn merges with SushiSwap (source)

To summarize these recent developments, Yearn.Finance is simply expanding its DeFi ecosystem in a big way. 

Yearn’s founder, Andre Cronje is launching new DeFi projects that complement Yearn.Finance; he’s integrating Yearn in popular DeFi dapps, and he’s merging the development resources with a wide variety of DeFi protocols to get an edge over the competitors. 

All in all, Yearn Finance is rapidly growing and despite it already has a major DeFi position it will only grow from here given their recent acquisition spree. 

FARM - 690,420 Total Supply


Harvest.Finance website homepage

Current price: $90 - $100
Mcap: $28,815,663 USD
Max. Supply: 690,420 FARM

Why should you pay attention to Harvest Finance?

Harvest Finance (FARM), like Yearn Finance, is an automated yield farming protocol created for users looking to put their assets to work in producing farming opportunities.

It’s one of the top 10 leading DeFi projects with nearly $700M total value locked (TVL) in its protocol and it continues to climb the DeFi protocol ranks with its innovative developments and strong community. 

Here are the latest happenings with Harvest Finance (FARM):

  • Harvest Finance continues to push forward despite October hack for $24M (source)
  • Harvest’s strong chad community shows its strength through community events; #BreadForThePeople, developer contests, writing contests, + more (source)
  • Harvest Finance is growing its community at Publish0x (source)
  • Harvest Finance re-designs its vaults for increased security and usability (source)
  • Harvest Finance updates UI and introduces a collapsible layout (source)
  • Harvest Finance continues to add new strategies that attract more liquidity providers (source)
  • Harvest Finance integrates with Idle Finance to provide access to the best yield strategies (source)
  • Harvest Finance partners with Gitcoin to kick off a $500k grant matching pool (source)

In summary, Harvest Finance is rapidly expanding its DeFi ecosystem through new protocol integrations, new lucrative strategies, regular design updates and improvement, a growing chad-like community, and a clear vision, path and plan for the future.

With its low market cap and $FARM token price, Harvest Finance is most definitely a project to keep on your radar. 

SFI - 100,000 Total Supply


Saffron.Finance dashboard

Current price: $200 - $400
Mcap: $7,419,211 USD
Max. Supply: 40,000 SFI

Notice how $SFI has a very similar low max supply like Yearn.Finance, yet the price of $SFI is much much lower than $YFI.

Why should you pay attention to Saffron Finance?

Saffron Finance (SFI) is yet another liquidity mining/yield farming protocol, but unlike Yearn and Harvest, Saffron has customized risk and return profiles via tranches which are split through the future earning stream and the net present value of utilized principle.

Only have launched on Nov 1, 2020, Saffron Finance is relatively new to the DeFi scene and has incredible potential with its innovative DeFi offering and low market cap and total supply.

Here are the latest happenings with Saffron Finance (SFI):

  • Saffron is the only product live in DeFi that offers tranches. (source)
  • Saffron is now incubated by BTSE, an incubator for up and coming decentralized finance products. BTSE appears to be very legit and has emerged as a major player in crypto. (source)
  • Saffron underwent a security review by Quantstamp and the review was completed without any findings of high severity. Quantstamp is the same security firm that performed audits for Binance and other major crypto players. (source)
  • Saffron suffered from a bug in one of their smart contracts but the team has since found a solution and the community is receiving it well. (source

In summary, Saffron Finance is an up-and-coming DeFi protocol that’s quickly making a name for itself. It was audited by the trusted leader in blockchain security, Quantstamp, and has received backing from BTSE – which should not be understated. To top things off, Saffron is the only live DeFi protocol with risk-averse tranches, meaning it's providing something new and innovative to the space. 

Taking everything mentioned above into consideration and combining it with the fact that Saffron Finance has a market cap ranked at around 585, a total supply of just 40,000, and a token price of ~$300; Saffron Finance (SFI) is severely undervalued.


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