Understand the flow of money in crypto. Part 4


welcome to fourth part from our series of articles designed to help you understand the flow of money through different types of cryptoassets. We examine historical trends that appear to be driving a predictable sequence of investor behaviors following a rally in Bitcoin prices.

Part one in this series looked at why Bitcoin tends to be the first to move, its power to bring new crypto investors into the fold, and how that triggered the flow of money we discuss in this series. (BTC is up + 31% since the release of Part 1)

Second part examined why Ethereum tends to be the next to move. We explained that this is mainly due to its size (Ethereum is the 2nd largest crypto asset by market cap) and because it supports a whole ecosystem of applications and services. (ETH is up + 63% since the release of Part 2)

Ultimately, part three examined how in 2021 we saw several large cap altcoins keep pace with Ethereum rather than rallying behind the Ethereum price spike, as they have done in the past. This can mainly be attributed to the fact that the large-cap altcoin space is now a larger and more diverse industry, which includes several real competitors vying for the throne of Etheruem as the king of smart contracts.


Getting to know the next big things

With several large-cap altcoins accompanying Ethereum for the first time in 2021, it’s harder than ever to predict where the money will go. Investors interested in crypto-assets with long-term disruptive potential have more options than ever before, but with these options comes the opportunity.

The chart below shows the returns of the top five altcoins, excluding Ethereum, since Bitcoin hit its all-time high.

Clearly, investors are interested in different blockchain and cryptoasset ecosystems that solve different problems while all of them serve the same purpose; global blockchain integration.

Understanding the exact use cases for these alternative crypto assets will give you a better understanding of the major players and areas of interest defining the crypto space in the near term.

5th) Cardano (-8.09%)

Cardano is a proof-of-stake blockchain with a cryptocurrency called ADA, named after famous mathematician Ada Lovelace. It was founded by Ethereum co-founder Charles Hoskinson, and aims to compete directly with Ethereum.

Cardano has earned all of its comparisons with Ethereum. It is called the first third generation cryptocurrency, aimed at solving the scaling and infrastructure issues that have been revealed in first (Bitcoin) and second (Ethereum) generation blockchains. More specifically, Cardano aims to solve issues related to scalability, interoperability (how blockchains communicate with each other), and the sustainability issues facing cryptocurrency platforms.

4th) Uniswap (-0.72%)

Uniswap is like ta New York Stock Exchange, but for crypto. Uniswap operates several crypto assets, including its native UNI cryptocurrency, to provide a service similar to a traditional exchange. The difference is that Uniswap does not have a central operator or administrator, which makes it completely decentralized.

Unlike most exchanges, which are designed to collect a fee, Uniswap is designed to function as a public good, a tool for the community to trade tokens without intermediaries. Plus, unlike most exchanges, which match buyers and sellers to determine prices and execute trades, Uniswap uses a simple math equation and token and ETH pools to do the same job.

3rd) Binance Coin (+ 10.52%)

BNB is the native cryptocurrency of the Binance network. Binance Coin was originally created as a token on the Ethereum network, but Binance has since developed its own network, the Binance Smart Chain (BSC).

The BSC offers similar functionality to Ethereum in that it seeks to develop an ecosystem of decentralized finance (DeFi) products and services by facilitating these financial transactions using smart contracts. It is, however, able to do so at a fraction of the cost.

BNB was first created as a utility token for the Binance exchange.

A utility token is a crypto-asset that, rather than serving as currency, gives users access to products and services on that specific platform.

BNB’s initial use case was to offer Binance users reduced trading fees when paying in BNB. Since then, BNB has become much more useful, allowing holders to access Binance features including trading, investing, interest, lending, borrowing and much more.

Just as Ethereumus users use ETH to pay fees when interacting with Ethereum protocols, BSC users will need to use BNB to interact with the network and applications built on it.

2nd) Polkadot (+ 19.90%)

Polkadot was designed for one purpose, to unify an entire network of blockchains – from Bitcoin to Ethereum and all the other blockchains in between.

As it stands, developers must choose which blockchain to build their applications on. Each channel is unique and has its own strengths and weaknesses, which developers should assess when deciding where to grow. As a result, many blockchains make different tradeoffs to support specific features and use cases. As blockchain specialization increases, the need to transact between them will only increase.

This is where Polkadot comes in.

Polkadot is a blockchain that provides an environment on which other blockchains, called “parachaines”, can run. It basically provides the infrastructure that other blockchains can use to interact with each other securely.

Polkadot allows these different blockchains to work together seamlessly on a large scale. This gives developers the flexibility to opt for parts of the Polkadot network that are suitable for their project and exclude those that are not. It also allows their projects to run across multiple blockchains, rather than being locked only to the blockchain the project is built on.

Polkadot’s cryptocurrency, DOT, plays a key role in the maintenance and operation of the Polkadot network.

1st) Solana (+ 41.58%)

Solana is a blockchain network that seeks to develop an ecosystem of products and services powered by cryptocurrency.

Solana offers similar functionality to Ethereum, but differentiates itself from the Ethereum network by offering faster transaction times, lower fees, and more flexible programming capabilities.

Solana is built for speed and can currently execute over 50,000 transactions per second. Bitcoin and Ethereum, meanwhile, can currently process 5 and 15 transactions per second, respectively. For reference, Visa’s payment network reportedly processes over 2,000 per second on average. Faster transaction processing speeds are required for decentralized financial applications based on blockchain technologies.

Not only is Solana faster, it is also much cheaper. How cheap?

While it costs users around $ 30 to complete a transaction on the Ethereum network, that same transaction would cost around $ 0.000025 to execute on the Solana network.

Developers can also write and launch customizable applications in multiple programming languages ​​on the Solana blockchain.

Solana’s native cryptocurrency, SOL, is used to pay for running programs and sending transactions.

Where from here?

It is clear that deciding where to invest in this phase of the crypto price cycle has become more complicated than it was just a year ago. We are in the middle of a race to see who will be the first to truly challenge Ethereum’s position as the second largest cryptoasset by market cap, and investor opinions on the matter could not be more. polarized.

Deciding what to invest in is hard enough, you don’t need overly burdensome fees!

Don’t worry, Revix makes it easy to access altcoin stock.

Revix, a Cape Town-based crypto investment platform, offers crypto investors a prime opportunity to add the best performing large cap altcoins to their wallets.

Zero fees on purchases

[Text Wrapping Break]Between November 5 and November 11, you will pay zero fees when you to buy Cardano, Uniswap, Peas, Solana Where Binance Piece of money in purchases made in ZAR or GBP.

Support the altcoin that you think will change the world, or expose your wallet to everyone. In any case, you pay no purchase costs.

Revix is backed by JSE-listed Sabvest and offers access to all of the individual cryptocurrencies we have mentioned in this article, such as Bitcoin, Cardano, Ethereum, Polkadot, Solana and many more.

You can start with as little as R500. Signing up is quick and effortless, and you can withdraw your funds at any time.

Read more:

Understanding the flow of money in crypto – Part 2

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About Mitchel McMillan

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