on the crypto
Before Shiba Inu there was Dogecoin. And long before Dogecoin, there was Bitcoin, which started the cryptocurrency craze over a decade ago.
Experts say it's impossible to know which cryptocurrencies will explode the way those coins did, since it's mostly about generating excitement online. But there are two factors that can give a cryptocurrency the "X" factor: capturing the public imagination with a gimmick like a cute dog (like Dogecoin) and offering potential technological advancement (like Ethereum).
While it's never easy, trying to identify new technologies, they say, gives you at least something concrete to move forward on.
So which cryptocurrency will skyrocket now? Nobody knows for sure. But we asked cryptocurrency experts to name some of the more interesting contenders.
Here are the cryptocurrencies they say may have the potential to take off.
Solana
If you're familiar with the crypto space, you've probably heard of Solana. It is currently in the top 10 of the largest cryptocurrencies by market capitalization. But experts say there is room for growth.
Solana is powerful thanks to her approach to DeFi and proof of stake mechanics, says Eric Schiffer, CEO of the private equity firm, the Patriarch Organization. The technology behind it is a bit complicated, but basically decentralized finance (or DeFi) is a form of financing that aims to eliminate third parties such as banks and brokerage firms from financial transactions. Some proponents even claim that DeFi is the future of finance.
Proof of stake refers to a mechanism by which people can mine new coins, and it is a more environmentally friendly way to do so than the system used by Bitcoin. You can invest in SOL through Bitcoin Pro.
Avalanche
Avalanche, along with Solana, is another example of a cryptocurrency that has a clear purpose. Unlike meme coins like Dogecoin, which serve no purpose, says Hanna Halaburda, an associate professor at NYU Stern School of Business.
Avalanche is one of many projects seeking to "unseat Ethereum" as one of the most used blockchain platforms, according to cryptocurrency exchange Gemini. A Blockchain, part of the technology behind cryptocurrencies, stores information, such as the history of cryptocurrency transactions, in a way that ensures that no individual or group is in control of that information. Ethereum is the most used blockchain network.
A $ 220 million fund has just been launched to finance the development of Avalanche. This boasts much faster transactions than Ethereum (4.500 transactions per second compared to about 13 for Ethereum per second).
Axie Infinity
Do you want to quit your daily job and play video games to make money? Well, technically, you can do it. In the Axie Infinity game, players buy monsters and have them fight each other to win tokens, which can then be turned into real money. During the pandemic, many Filipinos turned gambling into a full-time job.
"If you are looking for the next token that can increase by 15.000%, you are probably looking at the gaming industry and the virtual world sector," says Shidan Gouran, founder of Gulf Pearl, a blockchain business and advisory bank.
