As we know, many new projects are born during the euphoric bullish phases. Some of these have valid fundamentals, while others are destined to decline over time as they do not find real and concrete uses. The most blatant example may be Bitcoin or Ethereum which have survived from their creation to the present day, holding the first and second position by market-cap among cryptocurrencies. Conversely, however, projects like Peercoin (now rank #722) have collapsed. Recently, we have seen blockchains such as Terra or Solana climb the rankings of the most capitalized coins while some others, such as Litecoin, have divested several positions. All this is inevitable as, as valid projects arrive, they are used by people and institutions, effectively leading them to greater capitalization. As you can see from these screenshots of 2015, 2017 and 2021, the positions are not stable and vary according to the emergence of increasingly better projects:
As investors, we are therefore interested in finding out what these hidden gems are and understanding if they have what it takes to survive bear market periods, thanks also to their intrinsic characteristics. Precisely these characteristics are what must be evaluated: by analyzing tokenomics and the purpose that a blockchain proposes, it is possible to have an idea of the value of the coin itself and understand whether to invest or not. In particular, a project must absolutely:
- Being unique: it must fill a void that no one else has filled, thus making itself indispensable.
- Being decentralized: it is not tolerable that in the world of finance 2.0 an innovative blockchain is centralized and therefore controllable.
- Have real use cases: As good as a project is, if it doesn't find a use case, it's bound to go dead.
- Be secure and allow some degree of scalability.
Today we have many valid projects, so let's try to analyze some of them and see if they have a concrete possibility of reaching the next market cycle while remaining among the top positions.
Algorand (ALGO)
Algorand is the blockchain fruit of the mind of Professor Micali, which aims to solve the trilemma of scalability, decentralization and security. It features very low fees and very fast transactions. The arrival of smart contracts and consequently of DeFi was recently announced. In addition, many institutions have started building infrastructure on its blockchain, including the state of El Salvador. These reasons have pushed its token to considerable rises and led several investors to buy it.
Solana (SOL)
Solana is a young blockchain, officially launched in 2020, with enormous potential. Implements a hybrid consensus method between proof-of-history and proof-of-stake and aims to facilitate the development of DApps. Solana's transaction speed has attracted a lot of interest among institutions, although it has faced some problems lately. An overload of transactions has in fact given the blockchain a hard time, sending it offline for a few hours. This is not a factor to be underestimated, we will see if programmers propose innovative solutions.
Cosmos (ATOM)
Cosmos aims to facilitate the interconnection between the various blockchains. Its purpose, in fact, is to make the various existing projects communicate, bringing tokens and liquidity from one chain to another. It is a project born in 2016 and therefore has already successfully passed a bear market, this makes it an absolutely valid project. Recently, protocols such as Osmosis.Zone are bringing a lot of liquidity to this project and a very extensive ecosystem is developing. Additionally, it is interfacing with Terra to bring $UST and $LUNA to its chain.
Terra (LUNA)
Terra is a project that uses stablecoins linked to the value of Fiat coins to enhance the payment system globally. Its token, $LUNA, is used to stabilize the value of these assets through a seigniorage system. Lately it has established some important partnerships such as, for example, the one with Korea where many people successfully use Earth for daily payments. Furthermore, the demand for stablecoins is growing and a respectable financial ecosystem has formed around this blockchain.
Polkadot (DOT)
No less important is Polkadot and its $DOT token, which with the implementation of parachains stands out from many others. The interoperability and connection between the various blockchains is its strong point, wanting to bring not only tokens but also all types of data or assets from one chain to another. At the moment auctions are being held to award the parachain on Kusama and soon it will also be done directly on Polkadot, making this project scalable to the maximum.
Obviously, naming all the blockchains that may have a future is impossible. There are many others such as Erlond, Celo and that of Crypto.com, for example, which are in development and have very interesting use cases. It is not possible to invest equally in all of them, but by studying and evaluating them you can get an idea of which ones have an extra boost compared to the others.
And how do you see the future of the top ten by capitalization in a few years?
Which token we will see at the top of the ranking?
Comment below with your opinion.
Read Also: Farm & Dump and Some News from Binance
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