As the past weeks’ bull market has continued to rage, we’ve seen prices for the two most well-known cryptocurrencies, Bitcoin and Ethereum, rocket upwards. However, many believe that the wider altcoin market could very well follow in Bitcoin’s wake. Essentially, the reasoning is that altcoins are lower-priced alternatives with more potential upside. So, when traders believe the price of BTC and ETH has gotten too high, they could instead look for undervalued altcoins. This is why we are taking a look at some promising altcoin projects that have traders talking.
We’ve previously answered the question “what are altcoins” and gone through the main cues you need to know about altcoins in 2021. This article, on the other hand, takes a closer look at some of the more obscure altcoin projects, but which have got cryptocurrency enthusiasts excited.
If you want to learn more about altcoins, you should enroll in Ivan on Tech Academy to get access to some of the most in-depth cryptocurrency education available anywhere. Ivan on Tech Academy already features over 30,000 enrolled students and dozens of cryptocurrency courses.
We preface this article by emphasizing that the following list does not in any way constitute financial advice. Instead, the following list of promising altcoin projects should just be seen as a basis for you to do further research. As always, it is essential that you do your own research (DYOR) to adequately understand projects you are looking to invest in.
The past weeks’ explosive price gains in the crypto market is attracting a lot of attention from investors. However, you essentially just need two things to be competitive when trading any asset class. The first is you need to be willing to learn, and the second is that you need access to good, reliable information to base your trading decisions on.
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The story of TrustSwap started when a venture capital company (VC) wanted to swap cash for tokens at a discounted price. The potential investment was great news. However, the company wanted to make sure that the VC did not take the discounted tokens and cash them in all at once for a quick profit. This move would've crashed the market's token price.
Unfortunately, the only way to accomplish this deal was to hire a middleman lawyer to release the tokens to the VC incrementally. What’s more, the lawyer commanded a high commission on each transaction. This was clearly flawed, but at the time, there wasn't a cost-effective solution out there for executing time-based payments.
This dilemma was the classic problem/solution scenario that inspired TrustSwap. The team wanted to find a way to simplify and automate the transaction process between people and organizations without having to go through expensive intermediaries.
So, TrustSwap set out to be the top DeFi ecosystem for smart-contract services such as cross-chain integration, crypto subscriptions, escrow, time-release, token locks, and more.
Trustswap's technology will enable users to execute smart contract-based agreements for far less money than the traditional way of hiring law firms or banks. Their role as can now be eliminated. In so doing, TrustSwap hopes to change the financial transactions landscape permanently.
SWAP is TrustSwap’s native ERC-20 token, and TrustSwap aims to use SWAP for governance, service discounts, and earning staking rewards. The maximum supply of SWAP tokens is 100 million. All in all, the buzz surrounding TrustSwap makes this a highly promising altcoin project.
Matic Network offers secure ETH transactions using their Proof-of-Stake (POS) network and side chains for off-chain computation. Smart contract platforms still haven't amassed wide adoption due to scalability and UX issues. So, Matic wants to balance higher transaction throughput with high transaction speeds and decentralization without the trade-offs.
Nor does Matic believe in proposing their own blockchain, since that could cause adverse network effects for dApps already deployed on the Ethereum blockchain. The team wants to leverage blockchain scaling while keeping a laser focus on UX.
MATIC is a promising altcoin project because it could become the Layer-2 gold standard for Ethereum. Matic faces some competition from xDAI, but lately, there have not been many new project announcements on xDAI. In comparison, it seems like there is a new project being announced daily on Matic.
Furthermore, when you launch a project, you need reliable technology, business development, collaborations, and partnerships. Many projects only focus on the technology side of things when they need all of the above because technology alone won't get anywhere.
Moreover, companies with lousy technology but good business development can outperform similar projects with good technology and lousy business development. In this regard, Matic is a beast.
Chainlink connects smart contracts to data providers, cloud services, IoT devices, payment systems, and more. And they can do this on any blockchain! Hence Chainlink has bragging rights to its offering universally connected smart contracts. Many of the top DeFi protocols and platforms already use the Chainlink Network for their price oracle as it provides tamper-resistant, high-quality price feeds with full market coverage. Looking to learn more about smart contracts, such as how to code smart contracts? Start your blockchain education today at Ivan on Tech Academy and learn all about coding smart contracts!
Chainlink has an intensely dedicated community affectionately called the "Link Marines." There have also been positive press releases about LINK working with Swift. However, the Link Marines, like any community, are in it for the gains. So, while "feel good," fluffy press releases are great, these partners need to be buying up the token to prop up its value. Otherwise, stories like these are just PR hype.
It seems likely that a multitude of banks will build their services on top of DeFi eventually, which should put Chainlink in a position to prosper.
The mission of Yield App is to bring DeFi to the world. Hence, the platform seeks to bridge traditional finance and DeFi to give their users high returns with safe custody. They promise to deliver all this through an intuitive dashboard similar to what traditional investors like. Essentially, Yield strives to create a simple platform for managing user investments in one account.
It's DeFi's nature to accumulate interest daily in liquid accounts. That means Yield App users can start earning returns on their investment in as little as one day. And with unlimited, instant access, they can withdraw from the fund at any time.
Yield.App has seen a lot of interest in the last few months, and community hype is often a good indicator of promising altcoin projects. Check out YLD yourself to get an even better understanding of it!
The team at YfDAI.finance strives to create a complete DeFi ecosystem combining lending, borrowing, staking, farming services, a decentralized exchange (DEX), and more for its users. YfDAI isn't just a protocol; it's a platform - a complete suite of DeFi services.
If you read our article, "DeFi Deep Dive - What is YfDAI.finance?" then you know the team has ambitious plans. And they will use the deflationary YF-DAI token for governance and paying fees with a cap of 21,000 tokens. That's all there will ever be, and with the burn mechanism, that will eventually reduce the supply to 13,950.
YfDAI Finance’s vision is certainly an ambitious one, and it remains to see whether the project manages to deliver on all its lofty visions. However, it is certainly a promising altcoin project, and one traders should keep their eyes on in coming months!
How would you like to participate in an ecosystem that improves your trading decisions? How about analyzing and executing all your trades (regardless of the platform or blockchain) in one place?
DexTools is talking about combining everything, including yield farming, wallet applications, and staking platforms. It's a massive goal, but the team thinks their ecosystem is resilient enough to accomplish this through powerful aggregation.
DexTools aims to provide its users with the most comprehensive, powerful, and intuitive experience possible in DeFi trading and analysis.
One of the problems it seeks to solve is that scammers can list tokens on Uniswap. So with their Uniswap Tools and the DexTools community trust feature, subscribers can see a token's trust score before buying it. Only subscribed users can participate, so that makes the ratings more reliable.
MAHA is the MahaDAO protocol's governance token. But MahaDAO is also introducing the world's first algorithmic, non-depreciating currency, ARTH. This stablecoin maintains its buying power or even appreciates regardless of which way the market moves.
ARTH can do this because stable collaterals back it. And these act as hedges against each other so that if one depreciates, the other asset will rebalance by appreciating.
The ARTH ecosystem follows MakerDAO's DAI concept. The ARTH token is inflation-proof, and its global measurement unit (GMU) distinguishes it from the other stablecoins.
The GMU represents a basket of assets (key currencies and commodities like gold and riskier assets like Bitcoin) that maintain a strong hedge strategy against any economic turbulence.
The team believes their system is superior to the International Monetary Fund's SDR, which only consists of main currencies and is nakedly open to political influence. They accept Bitcoin as the best "riskier asset" because its price represents world stock exchange spillovers.
Darwinia is one of the critical projects in the Polkadot ecosystem, and it serves as a bridge between different parachains. This project claims to provide the safest cross-chain solution to connecting Polkadot, Ethereum, TRON, and others. But their main application areas include DeFi, NFT trading markets, and games, to name a few.
RING is Darwinia's native token used for transaction fees, contract execution fees, and storage fees. Darwinia will incentivize participants to stake by distributing RING tokens to them. Consequently, it will be interesting to see what becomes of Darwinia - especially as the Polkadot ecosystem is a vibrant one.
Poolz.finance is a decentralized token swapping protocol and will be a cross-chain and liquidity trading protocol. It will enable startups to obtain the necessary bootstrapping liquidity by auctioning their tokens.
As for investors, they can use the Poolz platform as a place to discover projects with high potential. Although early-stage projects will find this platform more relevant to their needs, any blockchain-based project can benefit. Moreover, the native POOLZ token is not listed on Coingecko yet, but Poolz.finance will use it for staking, governance, project development, and more.
All of these altcoin projects have potential, but remember that all buying decisions are up to you. As always, be sure to use your brain and put on your “big boy pants” before trading. None of these tokens should be seen as recommendations to buy, because by no means are they guaranteed to rise in value.
If you buy one and it moons, you get all the glory. Likewise, if you buy one and it tanks to zero, you get all the blame. So, do your research and never trade crypto with more money than you can afford to lose. Best of luck and may this past weeks’ bull market continue! If you want to make trading even easier, be sure to check out the Ivan on Tech BSI crypto trading indicator! Are you interested in receiving a world-class blockchain education? If so, join Ivan on Tech Academy today!
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