How to Choose Top Crypto Projects to Follow: A Guide to Layer 1 Tokens, DeFi, and Stablecoins

19 Oct 2023

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments, including Bitcoin, are highly volatile and risky. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. The views, thoughts, and opinions expressed in this article belong solely to the author, and not necessarily to CrytoCompare.

The world of cryptocurrency has witnessed immense growth and development over the years, transitioning from a fringe concept to a viable alternative form of finance. With thousands of crypto projects worldwide, choosing the top crypto project to follow can be daunting. Here, we will focus on three categories of these projects: Layer 1 Tokens, DeFi Projects, and Stablecoins.

Layer 1 Tokens

Layer 1 Tokens are the foundational building blocks of the blockchain universe, hosting applications and facilitating transactions. Frequently known as the foundational element of the blockchain, these tokens embody the initial, or primary era, of blockchain technologies and play a crucial role in the comprehensive framework and operation of the network.


Introduced in 2009, Bitcoin emerged as the pioneer among digital currencies and quickly established its supremacy within the market, boasting the highest capitalization.

Its value stems from a finite supply limit of 21 million coins, mirroring the concept of scarcity seen in precious metals like gold. Its growing acceptance as a 'digital gold' and a form of 'digital cash' in the global financial market offers significant investment potential, making it a top crypto to invest in.


In 2015, Ethereum emerged onto the scene, heralding a remarkable advancement in blockchain technology through the integration of adaptable smart contracts. This revolutionary addition paved the way for the development of decentralized applications (dApps) within its framework, consequently revolutionizing the entire landscape of the blockchain sector.

BNB Chain

In a testament to the continuously evolving landscape of blockchain technology, Binance Chain and Binance Smart Chain merged to form BNB Chain. With its name symbolizing "Build and Build," BNB Chain aims to stimulate more innovations in the blockchain sphere. This blockchain provides a multi-chain, open, and permissionless platform, creating an environment conducive to extensive creativity and development.

Alongside these features, BNB, as a native token, fuels transactions on the BNB Chain and plays a crucial role in decentralized on-chain governance. With these functionalities and the backing of a robust ecosystem, BNB presents considerable potential as a crypto investment.

DeFi Projects

DeFi, or Decentralized Finance, aims to transform traditional financial systems by enabling peer-to-peer transactions without intermediaries.


As one of the leading decentralized exchange platforms, Uniswap has revolutionized token trading. The platform's native token, UNI, is increasingly valuable as the protocol grows.


Chainlink facilitates communication between blockchain and external data sources, making it essential in the DeFi space. Its native LINK token presents a promising investment opportunity due to its wide use case.


Aave, a decentralized lending platform, allows users to lend and borrow crypto. The native AAVE token plays a significant role in protocol governance, creating investment potential.


Stablecoins are a type of cryptocurrency designed to minimize volatility by pegging their value to an external reference, usually a reserve of fiat currency like the US dollar. If you’re wondering, “are stablecoins really stable?” note, these tokens combine the instantaneous processing and security of crypto transactions with the volatility-free stable valuations of fiat currencies.

This makes stablecoins particularly useful for transactions, as a store of value, and as a hedge against the wild swings often seen in the cryptocurrency markets. The two significant stablecoins we will discuss are Tether (USDT) and USD Coin (USDC).

Tether (USDT)

Tether, the most widely used stablecoin, is pegged to the US dollar and offers crypto investors a haven during market volatility, providing both utility and investment potential.


USD Coin is another stablecoin pegged to the US dollar. Developed by Circle and Coinbase, it offers transparency, making it a reliable and potentially profitable investment.

Bottom Line

Following cryptocurrency requires understanding the various types of tokens, their functions, and potential returns. It is crucial to bear in mind that the crypto landscape exhibits volatility, thus necessitating cautious decision-making when allocating investments.

As the cryptocurrency domain persists in its progression, the possibility of significant returns endures, alongside the inherent element of risk. Always conduct thorough research and consider diversifying your investments to spread potential risk.



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