Altcoin Evolution – Part V: The Closing Recap
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 In Hollywood, And The Stars Are Loving It!
Stand Out Or Sit Down
In 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
Source: Read Full Article
