Most promising cryptocurrencies before the bullrun

Table of Contents

In today’s article, we will discuss the most promising cryptocurrencies before the bullrun

Most promising cryptocurrencies before the bullrun

Internet Computer – Blockchain network, which aims to bring greater efficiency, speed, and decentralization of computations and data storage
Injective – DeFi Protocol, which allows creating decentralized exchanges, derivatives, and other financial products
Optimism – A Layer 2 solution, whose goal is to increase the speed and scalability of the Ethereum network
Kaspa – Cryptocurrency based on its own, patented DAG technology, which provides a secure and efficient infrastructure for data storage and payment transmission
THORChain – A platform, which offers a decentralized solution for the exchange of cryptocurrencies across different blockchains
Arbitrum – A Layer 2 scaling solution for the Ethereum blockchain
Mina – L1 Blockchain, whose goal is to fulfill the original promise of blockchain – decentralization, scalability, and security
Astar – Cryptocurrency, whose goal is to provide a decentralized platform for interoperability across chains

Most promising cryptocurrencies before the bullrun – a more comprehensive analysis

1. Internet Computer – Blockchain network, which aims to bring greater efficiency, speed, and decentralization of computations and data storage

Internet Computer stands out by not being a typical platform for smart contracts. The goal of ICP is nothing less than to replace the entire internet as we know it. The platform, behind which stands the startup Dfinity, can be defined as a project to expand internet access, eliminate the monopoly established by big technology companies, and offer developers, users, and businesses a mechanism for deploying “software and services directly on the public internet.”

ICP was launched in May 2021 and immediately became one of the biggest blockchain projects on the market. The Internet Computer platform provides instant access to dApps (decentralized applications) using blockchain and cloud technologies. Internet Computer allows developers to create and host applications on the blockchain and users to use them directly in the browser. This platform provides scalability, security, and immediate smoothness, meaning that applications running on the internet computer run without delays.

This is a unique project, where the idea of decentralization is fully realized. However, this does not concern the area of electronic money, but aims at the global cloud infrastructure. It can be called “World Computer,” whose goal is to replace traditional IT technologies. In this way, a new generation of Web3 applications and services, fully running on the blockchain, is created. ICP is considered an improved version of the Ethereum network capabilities.

Internet Computer offers a number of advantages over traditional hosting platforms. Firstly, it provides instant access to applications without the need to install them on the computer. Moreover, thanks to the use of blockchain technology, this platform is more secure and decentralized than traditional solutions.

2. Injective – DeFi Protocol, which allows creating decentralized exchanges, derivatives, and other financial products

Injective is a unique blockchain where developers can find robust modules ready for use, such as a fully decentralized order book, which can be used to create a diverse range of sophisticated applications. Moreover, Injective is an open, interoperable platform for smart contracts. Injective is created using Cosmos SDK and facilitates high-speed transactions across chains on the largest first-layer networks, such as Ethereum and Cosmos Hub.

The Injective ecosystem provides unlimited and unprecedented access to decentralized financial markets, products, services, and tools. Users can create any financial market using the secure and fully decentralized exchange protocol of Injective. The trading infrastructure of Injective is fully powered by a central limit order book, integrating user-friendly interface and the speed of centralized exchanges with the transparency of decentralized exchanges.

The unique decentralized protocol is capable of supporting cross-chain trading with cryptocurrencies, perpetuals, futures, and various assets on many blockchains. The Injective ecosystem includes more than 100 projects and more than 200,000 community members from all over the world. The project is supported by a group of significant investors, such as Binance, Pantera Capital, and Mark Cuban.

INJ is the native token of the protocol. It is an asset that is used for governance, liquidity extraction, and staking. 60% of all trading fees go to the buyback and burn of INJ every two weeks, allowing the supply of INJ to decrease over time.

3. Optimism – A Layer 2 solution, whose goal is to increase the speed and scalability of the Ethereum network

Optimism blockchain utilizes Optimistic Rollups technology, which reduces transaction fees tenfold compared to the first layer of the Ethereum network. At the same time, it allows easy implementation of any smart contracts and decentralized applications written in Solidity. The Optimism network has the capacity of 200 to 2,000 transactions per second. According to data available on the website DefiLlama, Optimism is among the top networks on Layer 2 in terms of the number of protocols operated and liquidity.

The essence of the technology is that transaction processing and smart contract execution occur in the Layer 2 network, while the main Ethereum network is tasked with generating blocks and ensuring security. Optimism uses its own Optimistic Virtual Machine (OVM), which allows smart contracts and decentralized applications written for Ethereum to run without change in the Layer 2 network. To increase the speed of transaction processing, OVM operates without verifying the authenticity of each transaction. This means that, unlike the Ethereum mainnet, every transaction in the Optimism network is considered real until proven otherwise.

To ensure security (e.g., to prevent double spending), OVM allows network participants to challenge the authenticity of transactions. Special computing nodes, called sequencers, aggregate hundreds of transactions made in the Layer 2 network into compact “accumulation packets,” which are incorporated into blocks in the base Ethereum network. Another type of nodes, validators, can challenge the authenticity of transactions sent by sequencers within a week. If a transaction is challenged by a validator, the entire packet is verified by comparing root states before and after the transaction.

If the check shows that the offer is false, the entire transaction packet and the corresponding block are rejected, the vigilant validator is rewarded, and the sequencer is punished. The native token of the ecosystem is called OP.

4. Kaspa – Cryptocurrency based on its own, patented DAG technology, which provides a secure and efficient infrastructure for data storage and payment transmission

Kaspa is a cryptocurrency based on its own DAG (Directed Acyclic Graph) technology. Thanks to this technology, transactions made using Kaspa are faster and cheaper than other cryptocurrencies. One of the key elements of Kaspa is its unique implementation of the Bitcoin protocol, which ensures compatibility with existing payment systems. This allows Kaspa to function as a complement or alternative to payment systems based on traditional currencies. Kaspa also offers many other advantages, such as easy integration with other projects, high scalability, low transaction costs, and user security and privacy.

Kaspa operates on a peer-to-peer basis, meaning that transactions are carried out directly between users, without intermediaries. Each user has their own copy of the ledger, which is used to verify transactions. Thanks to the use of DAG technology, Kaspa offers exceptionally high performance and scalability. DAG allows parallel processing of transactions, meaning that the more users, the faster and more efficient the network becomes.

Kaspa’s mainnet today processes one block per second, but “the goal of developers is to significantly increase the number of blocks per second, which will attract the development of smart contracts and DeFi.” This makes Kaspa one of the fastest blockchains based on PoW. Unlike bitcoin and other PoW systems, such as Bitcoin Cash, Litecoin, and ZCash, Kaspa has such high transaction processing speeds that it has the potential to become a global peer-to-peer payment platform. It effectively becomes a competitor to bitcoin, even assuming widespread adoption of the Lightning Network.

Kaspa (KASP) is a project that seeks to solve significant performance and scalability problems in blockchain technology. Its innovative approach to dynamic block size and decentralized issuance opens doors to new opportunities and perspectives in the world of cryptocurrencies.

5. THORChain – A platform that offers a decentralized solution for exchanging cryptocurrencies across different blockchains

If you are looking for a decentralized solution that allows you to easily exchange tokens across chains, without wrapping tokens, then THORChain may be what you were looking for. You can also earn by providing liquidity to the exchange or running a node to secure the network. You are probably already comparing THORChain with Uniswap in your head, but in many respects, they differ. THORChain was created in 2018. However, it offers a whole range of exchange services, and its continuous liquidity pools are unique in this industry.

Since THORChain is built as a cross-chain solution, it is possible to exchange any asset through THORChain, which is better than DEX offers. In the THORChain ecosystem, there are essentially two groups. Some are users and others are liquidity providers. Users are the primary participants of the network, who use the cross-chain services of the project for easy token exchanges. Such swaps are carried out between liquidity groups, with the user paying a fee to cover transaction fees and for the execution of the swap.

The second group that uses THORChain are liquidity providers, who add liquidity to various pools for operating the exchange. This liquidity is bound to RUNE tokens and is then held in separate vaults operated by network nodes. By using a continuous liquidity pool in this way, THORChain avoids the need for external price sources or oracles. Liquidity providers are rewarded through transaction fees charged to users.

The thing that keeps the entire THORChain ecosystem together is the BiFrost protocol, which the team built from the ground up and does only one thing – connects all existing blockchains together. The RUNE token is the native token of THORChain and is also an important part of the system. It is a BEP20 token and serves four purposes within the ecosystem: security, liquidity, governance, and rewards.

6. Arbitrum – A Layer 2 Scaling Solution for the Ethereum Blockchain

Arbitrum is a Layer 2 scaling solution developed by Offchain Labs with the aim of addressing Ethereum network congestion by improving the way smart contracts are verified. The platform leverages the security provided by the Ethereum mainnet while allowing smart contracts to run on a separate layer to reduce network load. This technique, known as rollup, involves verifying a series of transactions and records on another layer before transferring them to the main Layer 1 network, in this case, the Ethereum mainnet.

Arbitrum rewards nodes that actively verify smart contracts on the Arbitrum chain. They are responsible for adding blocks to the first layer – the Ethereum mainnet. While other protocols also strive for similar improvements, Arbitrum currently stands out for its compatibility with the Ethereum Virtual Machine (EVM), meaning developers don’t need to learn a new coding language to build their DApps on the main Arbitrum network.

Arbitrum is based on Optimistic Rollups technology, used by several competing L2 solutions like Optimism. However, Arbitrum developers have managed to optimize the cumulative structure to minimize the amount of data sent to the mainnet, thus reducing transaction costs compared to L2 competitors. Arbitrum developers have incorporated three types of validators into Optimistic Rollups and a unique dispute resolution mechanism. The consensus mechanism ensures that validators can challenge a transaction within seven days.

The Arbitrum token, ARB, is the native governance token compatible with ERC-20 for the Arbitrum blockchain. ARB can be used for value transfer, as an investment, or to vote on governance decisions.

7. Mina – A Layer 1 Blockchain Aiming to Fulfill the Original Promise of Blockchain: Decentralization, Scalability, and Security

Early blockchains like Bitcoin and Ethereum accumulate more data over time, now amounting to hundreds of gigabytes. Their blockchains will continue to grow, posing a significant disadvantage because verifying transactions requires transferring the entire blockchain history. Mina has chosen a different approach. Thanks to its small size of around 22 kilobytes, fast peer-to-peer transactions with direct protocol synchronization are possible without issues. Furthermore, Mina does not continuously expand but always maintains its size.

The small size allows participants to quickly synchronize and verify the current consensus state of the network. Additionally, the threshold for joining the network is low, as it requires almost no computer power or storage. For comparison, downloading a copy of the Bitcoin blockchain and connecting to the blockchain network can sometimes take weeks. With this significant speed advantage, Mina aims to compete with industrial giants.

However, due to its special architecture, Mina cannot store transactions permanently. If that happens, an additional “archive node” comes into play, storing transactions off-chain. This means that the functionality of the main chain is not affected. The protocol uses so-called zero-knowledge proofs, specifically zk-SNARKs, that capture the entire blockchain’s state as a “snapshot” and pass it on, avoiding the need to send all the data in the chain.

The native token of the protocol is MINA. The primary purpose of these tokens is to facilitate transactions within the blockchain and also serve as a reward mechanism for users who contribute to maintaining the network’s efficiency.

8. Astar – A Cryptocurrency Aiming to Provide a Decentralized Platform for Interoperability Across Chains

Astar is known as a dApps hub. It is a platform that supports smart contracts and Layer 1 blockchains, similar to the largest platform of this kind, Ethereum. It is a parachain of Polkadot. Parachains are blockchains that are self-governing, have their own tokens, and fees, but their security and block finality are provided by the Polkadot Relay Chain. Astar is not a set of smart contracts, a token built on another platform, or an L2 solution.

Astar (formerly Plasm Network) enables developers to easily create their applications. The platform is based on the Optimistic Virtual Machine (OVM), Rollups, and other features for creating scalable dApps. Astar natively supports both EVM, i.e., smart contracts written in Solidity (compatible with Ethereum), and WASM. This is possible thanks to a feature called X-VM (Cross Virtual Machine). X-VM allows smart contracts to establish connections and read data from different virtual machines within the same blockchain and in various languages. According to Astar, WASM is the future because it is much better optimized, faster, and allows writing smart contracts in practically any language.

A very interesting feature of Astar is also Operator Trading. It is a mechanism for buying and selling Astar applications and directly relates to one of Astar’s most interesting modules, called DApp Staking. DApp Staking is a mechanism for rewarding developers or administrators of smart contracts. 50% of the rewards go to the application developers. Astar allows you to assign a smart contract administrator, called an “operator”. Operators can nominate dApps “Nominators”, who also receive rewards. Of the 50% of rewards for each block, 40% goes to smart contract operators and 10% to nominators.

The network’s native token is called ASTR. It is used to cover transaction fees, incentives for participation in project management, and in dapp staking as rewards for everyone involved. Such a system not only encourages people to build their applications on Astar but also allows users to earn money by supporting their favorite application.

Most promising Cryptocurrencies – Conclusion

Crafting a conclusion on the most promising cryptocurrencies involves considering various factors such as technological innovation, market adoption, community support, and regulatory landscape. A few cryptocurrencies have consistently been highlighted for their potential due to these factors:

Bitcoin (BTC): Often referred to as digital gold, Bitcoin remains the leading cryptocurrency by market capitalization. Its promising aspect lies in its wide acceptance as a store of value and means of exchange, coupled with increasing interest from institutional investors.
Ethereum (ETH): Known for its smart contract functionality, Ethereum has a robust ecosystem supporting decentralized applications (dApps). With the transition to Ethereum 2.0 and a shift to proof-of-stake, it aims to address scalability and environmental concerns, making it a promising investment.
Binance Coin (BNB): As the native cryptocurrency of the Binance exchange, BNB benefits from the platform’s expansive user base and ecosystem. Its use cases in transaction fee reductions and participation in token sales under the Binance Launchpad program contribute to its promising outlook.
Solana (SOL): Praised for its high throughput and low transaction costs, Solana offers significant advantages for developers building decentralized applications. Its performance efficiency positions it as a promising blockchain for widespread adoption.
Cardano (ADA): With a strong focus on security and sustainability, Cardano is being developed through peer-reviewed research, making its growth slow but steady. Its efforts to provide scalable and interoperable blockchain solutions, especially in developing countries, mark it as a cryptocurrency with long-term promise.
Polkadot (DOT): Designed to enable different blockchains to communicate and share information, Polkadot’s unique interoperability feature makes it a standout project. This could lead to significant adoption as the industry moves towards a multi-chain future.

While these cryptocurrencies show promise due to their unique features and community support, it’s crucial to remember that the cryptocurrency market is highly volatile and speculative. Potential investors should conduct thorough research and consider their risk tolerance before investing in these or any other cryptocurrencies. Additionally, the landscape of cryptocurrencies is rapidly evolving, with new projects and technologies continually emerging that could also prove to be promising in the future.