Altcoin Evolution – Part V: The Closing Recap
04 September 2021 - 1:59PM
NEWSBTC
Throughout the “Altcoin Evolution” series, we have taken a closer
look at the potential gains and pitfalls that will define the path
forward for cryptocurrencies not named Bitcoin (BTC) or Ethereum
(ETH). The behemoths of the crypto market have clearly
set themselves apart from the rest of the pack, and while they may
be subject to these potential outcomes, it’s fair to say – at least
today – that these cryptos have a completely different perspective
than virtually any other crypto or blockchain project.
That being said, what can altcoins do to gain traction and become
more competitive on a larger scale? Let’s recap what we’ve covered
throughout this series. Sign On The Dotted Line We
highlighted a few projects, particularly around the booming NFT
space, that have done this quite well. Sign contracts. Find
partners. Make connections. As the broader crypto industry
continues to assess what altcoins can provide to daily operations,
there are sure to be consistent opportunities. Having a foot in the
door when these situations arise is almost certainly
beneficial. Arguably the most compelling argument for
the evolution of altcoins is to specialize one particular aspect
(low gas fees for transactions, speed, etc.), but be capable in a
variety of areas. Of course, projects are going to want to maximize
value by having technical capabilities across the board that are
ahead of the curve. However, taking the technical and
foundation aspects aside, what we honed in on most was the “extras”
for altcoins – the selling points that aren’t inherent to the
blockchain technology being used on certain projects. This is why
NFTs made for great examples. A majority of NFTs work off of
Ethereum, which is known for having higher transaction costs. So
how can projects find other selling points to grab ahold of? That’s
what we’ve looked to address in the duration of “Altcoin
Evolution.” Polygon is a prime example in our 'versatility' bucket
for it's wide applications across the crypto space.| Source:
MATIC-USD on TradingView.com Related Reading | Crypto Has Arrived
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Part I, we laid out the groundwork for the inherent challenges that
crypto projects often face in the market. We went on to discuss
those with more depth in the following three pieces in the
series. We started off with accessibility. With
emerging exchanges and platforms, accessibility becomes an
increased focal point for rising altcoins. Platforms like UniSwap
and SushiSwap have increased accessibility for intermediate
consumers. All the while, more widely-used platforms such as
Coinbase have placed an emphasis on supporting more tokens. Of
course, it takes technological fundamentals, a strong whitepaper,
and great marketing even just to be considered for some of the more
well-known exchanges and platforms. By Part III of the
series, we began to start scratching the surface of nailing down
the importance of a digestible use case. This can often come as
shifts in global activity come over time. For example, the economic
impacts of COVID-19 are often cited as a growth driver for projects
like Axie Infinity, which has taken a prominent position in the NFT
marketplace. Axies have essentially formed internet economies that
individuals in developing countries can utilize. Altcoin
Evolution: It’s A Wrap In our final discussion around challenges
for emerging projects, we highlighted a number of different
“buckets” that we often see some of the best altcoin sales pitches
utilize. Some projects lean into more than one of these buckets:
Partnerships & IP, Aggressive Interest Rates / Rewards,
Decentralization, Versatility, and Low Cost. Before we close
the books on “Altcoin Evolution,” let’s take a closer look at prime
examples of each of these buckets that are executing today. Earlier
in the series, we highlighted the OMI token and the associated
ECOMI project, who have sealed NFT partnerships with companies like
Marvel on their VeVe marketplace. DeFi and CeFi
companies like BlockFi, Nexo, and Celsius have been offering
aggressive interest rates for storing tokens on their respective
platforms; these firms have built massive enterprises simply off of
loaning crypto and incentivizing crypto consumers to hold their
tokens with these platforms, providing interest rates substantially
more aggressive than what we’ve seen in traditional banking.
Decentralization is a core component of almost any crypto
project – although many projects can be significantly more
centralized than others. However, the crypto community has long
recognized the importance of decentralization. One example of this
recognition is NFT marketplace Rarible’s recent move to a more
decentralized format, implementing $RARE tokens and giving platform
users a greater voice in the future of Rarible.
Versatility can often be seen in projects like Cardano or Polygon.
Both respective projects flex the versatility muscle, working
across a variety of spaces. Both projects have been building
ecosystems around DeFi, smart contracts, NFTs, and a whole lot
more. Finally, the attribute of low cost can often
draw in mass consumers. Dogecoin has often had major appeal from
it’s cheap price relative to other tokens, and many mainstream
Bitcoin critics have said that the high price of one BTC would
dissuade new potential crypto consumers from buying in. While this
can be positioned as a mental battle, it is still one that is
present in today’s crypto discussions, and there is an appeal to
having a cheaper token for many emerging projects.
That closes the books on “Altcoin Evolution.” We appreciate you
stopping by each week and look forward to our next altcoin-focused
series. Our team at NewsBTC provides a special thank
you to Jerry Sena for his insight, feedback and contributions to
this series. Related Reading | Bittrex Global CEO Declares Dubai
Will Gain Benefit From Cryptocurrency Market Expansion Charts from
TradingView.com, Image courtesy Jerry Sena
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