Throughout the “Altcoin Evolution” series, we have carefully studied the potential benefits and pitfalls that will define the way forward for cryptocurrencies not named Bitcoin (BTC) or Ethereum (ETH).
The behemoths of the crypto market are clearly distinguished from other cryptocurrencies, and although they may be affected by these potential results, it is fair to say-at least today-these cryptocurrencies have a completely different view from almost any other cryptocurrency. Or blockchain projects.
Having said that, what can altcoins do to gain traction and become more competitive on a larger scale? Let’s review what we covered in this series.
Sign on the dotted line
We focused on some projects, especially around the booming NFT field, and they did a good job in this regard. signing the contract. Looking for partners. build connection. As the broader crypto industry continues to evaluate what altcoins can provide for day-to-day operations, there will certainly be ongoing opportunities. When these situations arise, getting out of the door is almost certainly beneficial.
It can be said that the most compelling argument for the development of altcoins is to focus on a specific aspect (low gas fee, speed, etc.), but they have capabilities in multiple fields. Of course, the project will hope to maximize value through comprehensive technical capabilities with leading advantages.
However, leaving aside the technical and basic aspects, what we are most concerned about is the “extra” of altcoins-the inherent selling points of the blockchain technology used in certain projects. This is why NFT is a good example. Most NFTs work on Ethereum, which is known for higher transaction costs. So, how can the project find other selling points to seize? This is the problem we have to solve during the “altcoin evolution” period.
Polygon is a prime example in our 'versatility' bucket for it's wide applications across the crypto space.| Source: MATIC-USD on TradingView.com
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Stand up or sit down
exist first part, We laid the foundation for the inherent challenges that crypto projects often face in the market. We continue to discuss these in more depth in the following three articles in this series.
We start with accessibility. With the emergence of emerging exchanges and platforms, accessibility has become the focus of rising altcoins. Platforms such as UniSwap and SushiSwap have increased accessibility for mid-level consumers. For a long time, more widely used platforms such as Coinbase have emphasized the support of more tokens. Of course, even if you just consider some of the more well-known exchanges and platforms, you need a technical foundation, a strong white paper, and excellent marketing.
go through the third part In this series, we set out to determine the importance of digestible use cases. This usually changes with global activity over time. For example, the economic impact of COVID-19 is often considered to be the driving force of economic growth. Projects like Axie Infinity, It occupies a prominent position in the NFT market. Axies basically formed an Internet economy that individuals in developing countries can use.
Altcoin evolution: this is a summary
exist Our final discussion on the challenges of emerging projectsWe have highlighted many different “buckets”, and we often see some of the best altcoins used for sales promotion. Some projects apply to more than one of these areas: partnerships and intellectual property, aggressive interest rates/incentives, decentralization, versatility, and low cost.
Before we end our book on “Altcoin Evolution”, let’s take a closer look at the main examples of each barrel being executed today. Earlier in this series, we focused on the OMI token and related ECOMI projects, which have established NFT partnerships with companies such as Marvel in the VeVe market.
DeFi and CeFi companies, such as BlockFi, Nexo, and Celsius, have been offering aggressive interest rates for storing tokens on their respective platforms; these companies borrow cryptocurrencies and incentivize cryptocurrency consumers to hold their tokens on these platforms. Large enterprises have been established, offering higher interest rates than what we see in traditional banking.
Decentralization is a core component of almost all crypto projects-although many projects may be more centralized than others. However, the crypto community has long recognized the importance of decentralization. An example of this recognition is the recent shift of the NFT market to a more decentralized format, implementing the $RARE token and giving platform users a greater voice in the future of Rarible.
Versatility can often be seen in projects such as Cardano or Polygon. Both respective projects demonstrate versatility, working in various spaces. Both of these projects are building ecosystems around DeFi, smart contracts, NFT, etc.
Finally, low-cost attributes often attract mass consumers. Dogecoin is generally attractive because of its low price compared to other tokens. Many mainstream Bitcoin critics have stated that the high price of a BTC will prevent new potential cryptocurrency consumers from buying.Although this can be positioned as a psychological warfare, it still exists in today’s encryption discussions, and there are Yes Call for cheaper tokens for many emerging projects.
This closed the “Altcoin Evolution” book. We thank you for visiting every week and look forward to our next series focusing on altcoins.
Our NewsBTC team would like to thank Jerry Sena for his insights, feedback and contributions to this series.
Charts from TradingView.com, Image courtesy Jerry Sena