Ever since it broke the $1000 mark back in 2017, Bitcoin, the first-gen cryptocurrency has experienced many ups and downs on its path to the current veteran status. As with many firsts, this digital coin has wide recognition and credibility, but nonetheless, this fact does not accurately depict the value of this asset, especially when compared to other available cryptocurrencies out there. The market shows signs of need for finer solutions, thus making constant innovations a necessity.
If we take a closer look at the current market situation, the real innovations are taking place in DeFi, which stands for decentralized finance, mainly the Ethereum-based (ETH) framework that fortifies it. DeFi basically imitates the infrastructure of traditional financial markets on a transparent and open blockchain framework and allows decentralized exchanges, token lending, etc. Statistics show that more than $2 billion worth of daily transactions and over $23 billion in decentralized loans as of March 2021. This is proof that your focus should be less on Bitcoin and more on these up-and-coming digital assets which will be covered by this article.
- Litecoin (LTC)
Litecoin represents one of the first altcoins available on the market, first introduced back in 2011; it takes after some of the best Bitcoin features, with the focus on a less troublesome processing infrastructure, in order to lessen the block generation time. A block is processed by Litecoin every 2,5 minutes in comparison to Bitcoin’s 10 minutes. It portrays a P2P completely decentralized Internet currency, with an open-source, global payment grid. Litecoin is a prominent example of the potential that peer-to-peer crypto holds, as well as the importance of constant innovation.
LTC trades at around $124 starting from 2021, currently valued at $262 per coin. The valued market capitalization is almost $18 million, with a 24-hour transaction volume of $10 billion. Litecoin is considered to be quite liquid, with further growth potential.
2. UniSwap (UNI)
UniSwap represents a decentralized liquidity protocol that is backed with automated trading of DeFi tokens. The current market cap is valued roughly at $16 billion with a large growth potential; it is compatible with all ERC-20 tokens in the ETH ecosystem. The growing potential can be seen in these numbers; at the beginning of the year, it traded for $5 and it currently trades around $30. UNI holds a significant position in the DeFi space, which gives it the title of the largest decentralized exchange in the crypto world. The protocol will be a part of FinTech 2.0 and the markets forecasted multi-trillion-dollar expansion, which will take place in the next couple of years, shifting away from traditional finance and leaning towards the DeFi infrastructure.
3. Chainlink (LINK)
Lastly, Chainlink represents a decentralized system designed with the intention to connect data from non-crypto space to smart contacts. LINK provides its users a fail-safe, reliable input and output options needed for smart contracts placed on any blockchain. It will potentially be the main link that joins all networks together. This is yet another proof of the growth potential that DeFi holds, as well as the ability to connect and facilitate further innovations.
LINK’s price has experienced an uptrend, along with other crucial DeFi tokens; it experienced an increase from $0,19 in 2018 to roughly $35 at the moment.
The DeFi crypto infrastructure space is one of the greatest opportunities the next decade holds when it comes to alternative assets. The continuous growth and improvements happening on the crypto market will allow these crypto players to benefit and mature in ways that Bitcoin clearly cannot. The growth rate happening right now will possibly continue and further expand in the future, which will allow these technologies to become dominant in the financial markets, making Bitcoin less attractive and outdated.