Key Takeaways
- The crypto industry has come a long way over the years, from being a relatively unknown tech niche, to being worth trillions.
- Through the revolution, Bitcoin and Ethereum have remained the cornerstones of the entire market.
- Some of the best scalability projects include Polygon, Arbitrum, Cosmos, and Optimism.
- The best DEFI projects include Uniswap, Aave, Compound, and many more.
- Decentraland, The Sandbox, Arweave, and Filecoin play the biggest roles in NFT, metaverse, and decentralized storage solutions.
The crypto industry has grown from being a small, relatively unknown tech niche to the giant it is today.
While the idea of what the “best” crypto projects should be has changed over the years, many projects have remained resilient.
Let’s go over some of these interesting examples of projects and see which ones are making the most impact so far.
The Cornerstones
In terms of the crypto market and what it stands for, Bitcoin remains the undisputed leader.
Bitcoin was the original cryptocurrency, and has cemented its position as the ultimate store of digital value.
Unlike many other projects that focus on smart contracts and defi, Bitcoin’s appeal lies more in its decentralization and security.
Bitcoin also has a finite supply, which makes sure that its value and adoption continue to grow.
As such, Bitcoin is one of the cornerstones of the entire industry.
Ethereum, on the other hand, came slightly later than Bitcoin.
This network introduced the concept of smart contracts to the mix, and allowed the development of decentralized applications (also known as DApps).
Ethereum’s transition to the Proof of Stake (PoS) consensus mechanism has also done much to make it more scalable.
In sum, this chain remains the largest in terms of DeFi projects, NFTs, and Web3 applications.
Solving Scalability and Interoperability
Other projects have emerged over the years, each of them with their own use cases and strengths.
Some of these projects include:
1. Polygon (MATIC/POL)
Polygon is an L2 solution that was made to enhance Ethereum’s capabilities.
Users can perform faster and cheaper transactions on the network, with Polygon directly solving the congestion issues that affected the user experience for years.
Developers also like Polygon for its versatility, and this project has become an essential tool when it comes to scaling Ethereum.
Other popular layer-2 examples include chains like Optimism, Arbitrum, Base and so on.
2. Avalanche (AVAX)
Avalanche is another one of the best cryptocurrencies in the space. This chain is a layer-1 blockchain, much like Ethereum.
However, Arbitrum is much faster and scalable. On top of this, it is highly compatible with Ethereum, and is therefore great for defi applications and enterprise solutions.
Avalanche has placed strong emphasis on customizability, and is therefore very attractive for developers looking to build strong blockchain infrastructure.
3. Cosmos (ATOM)
Cosmos remains one of the best blockchains when it comes to enabling communication between different blockchains.
It presents itself as an “Internet of Blockchains,” allowing multiple unrelated projects to exchange data and assets.
It also features developer-friendly tools, and is leading the push towards a more connected ecosystem for blockchains.
Another popular project in this space is Polkadot, which performs the same function but with a slightly different approach.
DeFi Innovations
Decentralized finance has grown a lot over the last decade, and many projects are at the forefront of this growth.
1. Aave (AAVE)
This project is one of the leading protocols when it comes to lending and borrowing crypto.
Users can earn interest on deposits or take out loans using crypto as collateral.
This project features other major applications like flash loans and stable rate borrowing. As such, Aave has become one of the leaders in the defi space.
2. Chainlink (LINK)
Smart contracts have come a long way over the years, from being limited to Ethereum alone.
Chainlink provides one of the most important services for defi applications in the space, with its decentralized oracles.
These oracles securely connect blockchain applications with real-world information like price feeds and weather data.
It is integrated with nearly every defi protocol on the market, and is therefore one of the best of its kind out there.
3. Uniswap (UNI)
Uniswap is a DEX on the Ethereum network, that allows users to trade tokens without the need for intermediaries.
It works based on its automated market maker (AMM) model, which removes order books from the equation and makes access to liquidity even smoother.
Uniswap is a ley player in DEFI and continues to shape the future of DEFI trading.
Other similar projects include PancakeSwap, SushiSwap, and more.
Web3 and NFTs
Web3 and NFTs have become popularized over the years, especially in the area of online interactions and digital ownership.
1. Filecoin (FIL)
Filecoin plays a major role in this revolution, by providing a more efficient way to store data on the internet.
Users can use Filecoin to rent out unused storage space, which creates a peer-to-peer economy.
Filecoin is one of the fundamental aspects of Web3 and NFT applications, and is one of the biggest alternatives to traditional cloud storage services.
Another similar project to Filecoin includes Arweave, which performs almost the same function.
2. The Sandbox (SAND)
The Sandbox is a leader in the metaverse space. It is similar to a virtual world where users can create, own, and monetize in-game assets through NFTs.
This project is big on user-generated content, which empowers creators and makes a key player in the metaverse movement.
The Sandbox’s integration of blockchain technology is also one of the biggest nods in favor of digital ownership, with Decentraland (MANA) being a viable alternative.
Overall investors looking to get in on some of these projects should remember that investing in crypto comes with its fair share of risks.
The market is highly volatile, and it is important to conduct thorough research before investing in any project.
