2021 has been an incredible year for the new-age financial technology of cryptocurrencies backed by blockchain. The implementation of technology plays a vital role in the shaping of finance and banking across the global community. Although the entire central banking is quite centralized, we saw a boom in the acceptance around the decentralized mode of transaction. This is evident from the fact that the decentralized economy today at the time of writing is worth more than $ 2 trillion.
After the impressive year of 2020, 2021 was indeed the year where the cryptocurrency industry not just survived the pandemic but came out with flying colors. Some of the most ambitious projects in the industry flew off the charts in 2021 and have never looked back ever since. The last quarter of the year saw the emergence of cryptocurrencies from a major dip to setting new all-time highs. This is how crazy and fascinating the cryptocurrency market is. While we are on this note, we must never forget our history while trying to build the future. Although there are the best crypto projects in 2020 it is highly likely that these best projects would have been replaced by another set of best crypto projects of 2021.
In this blog, we will understand what makes a crypto project stand out from its competition and an overview of the best crypto projects in 2020 and 2021. These projects in the past two years will indeed give us a thorough idea of the next big cryptocurrency we must look out for or the best crypto projects of 2022.
The crypto world has matured significantly in the last two few years due to several factors. One of the most significant factors is the growing appeal towards considering digital assets as another instrument of investment. We know that blockchain and crypto are still in their primitive state and therefore, it becomes a little difficult to identify the best crypto project among so many projects coming up each day. But once we understand the underlying principles behind what is the best crypto project we can find and anticipate the performance of the next crypto projects.
There is a wide variety of niche markets within the crypto industry. Each industry has its best crypto project which is unique in itself and has something significant to offer to the world. For example, there are projects under the decentralized finance (DeFi) market while there are completely unique projects under the NFT market. Both the industries are billion-dollar industries in themselves. Just like DeFi and NFT, there are various other niches that have been contributing to the growth of the crypto industry.
These niche projects have established themselves as the best crypto projects in their respective domains because they constantly strive to adapt to the volatility of this industry while seamlessly remaining at the forefront of the ongoing revolution. The crypto projects we discuss in this blog belong to different niches of crypto exchange, NFT, Marketing, Decentralized Exchange (DEX), and DeFi.
Although there are tons of new tokens being released every other day pertaining to new use cases most of them are just trying to ride the crypto wave without making any significant impact on the global economy. It’s time to focus on some of the legitimate projects that will make a difference and has been doing the same since their inception.
The app came out to the world in 2019 with the help of the EOS blockchain. the primary focus of this application was to decentralize the entire social media network. It encouraged the users to ‘do good’, significant from its name. The users had to document that good deed online to create a positive wave throughout the community.
The number of users it acquired within a small span of time is really impressive. At one of the given points of time, it also achieved the status of one of the most used crypto apps across the entire blockchain system. The value provided by this application is also unimaginable. The users could earn crypto by a simple post on their app. This has become a source of passive or secondary income for people in developing nations. Indeed a great project to look out for in the upcoming years.
Binance has been taking the crypto use cases to whole new levels since its inception. being one of the leading crypto exchanges across the globe it has been making some serious impact on the global economy along with bringing in a significant positive wave.
You will come across many charity initiatives that let you donate in crypto, so what makes Binance Charity unique? Well, it takes you a step further. Binance charity leverage blockchain to help verify this good work. It also donates 100% of the amount received as a donation to the actual cause. The primary vision of this blockchain-based charity platform is to help drive a world where blockchain could be used to mitigate issues of inequality and sustainable development. The drive to unlock innovation and transcend it into action has made this crypto project one of the best crypto projects in 2020.
Since Binance Charity is a blockchain-based charity system, the donors have complete access to trace their cryptos or money and it remains accountable and immutable, leveraging the features that blockchain comes with.
|Decentralized Exchange (DEX)||Uniswap|
There are numerous projects that are making quite a stir in the NFT market. And at the center of that lies one of the latest and amazing crypto frenzy of CryptoPunks. The market metrics of this crypto project show it to have the highest collection net worth.
It is important that we remember that crypto punks existed in the market way before NFTs gained popularity in 2021. It was one of the first NFT collectibles to be launched on the Ethereum blockchain. There are more than 10,000 verifiable and unique characters within this collection. While these collectibles sold for $50 to $100 back in 2018, one of the characters from the collection got sold for $7.56 million in the first leg of this year. The entire market of crypto punks is estimated to be worth $350 million.
Despite facing different issues in the past few months, Uniswap was able to hold its position as the top Decentralized exchange (DEX). This is mostly due to its simple protocol and the high liquidity it provides to the traders. The latest updates that Uniswap went through made it more flexible both in terms of fees and the possibility of price slippage. After its upgradation, Uniswap V3 became the top Decentralized exchange with an average trading volume of $800 million on a daily basis.
With this upgrade and the high liquidity that Uniswap has to offer, traders and investors have started to consider decentralized exchange as their go-to trading spot. This has indeed challenged a lot of centralized counterparts of Uniswap.
Chainlink came into existence in 2017 and is a blockchain abstraction layer allowing universal smart contracts to connect. The blockchains can securely interact with each other and external data feeds with the help of decentralized oracles. This makes the critical off-chain information required by the complex smart contracts become the dominant form of digital agreement.
Chainlink is one of the pioneers of allowing integration between off-chain data and smart contracts. Chainlink has become one of the big players in the field of data processing. It has garnered the attention of several trusted data providers such as Alpha Vantage, Brave New Coin, and Huobi. The information can be easily monetized by the data providers by selling the data access directly to ChainLink.
The network is driven by an open-source community consisting of node operators, data providers, researchers, smart contract developers, and security auditors. The company ensures that decentralized participation is guaranteed among all the node operators as well as the users looking ahead to participate.
Avalanche is a layer one blockchain system functioning as the platform for decentralized applications as well as custom blockchain networks. It gives direct competition to Ethereum which is the most popular smart contract blockchain. The main advantage of Avalanche over Ethereum is producing a higher transaction output of more than 6500 transactions within a second. Although it provides great output speed but never compromises on scalability.
The unique architecture of avalanche has made everything possible for it. There are three individual networks within the blockchains the P-chain, X-chain, and C-chain. Each chain has its purpose which is completely different from the Ethereum and Bitcoin approach wherein each node validates every transaction. There are different consensus mechanisms used by Avalanche.
The blockchain trilemma, the three issues plaguing blockchain namely security, scalability, and decentralization. Avalanche has been working on creating its ecosystem of DeFi and Dapps. Different projects backed by Ethereum such as TrueUSD and SushiSwap have been integrated into Avalanche. It has also put in constant effort in improving the interoperability between Ethereum and its ecosystem.
These are some of the top crypto projects that any crypto investor or enthusiast must keep in mind before making their next investment move. Experts believe that these projects have a long way to go, and might have a significant impact in the future.
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