Many of us mainly "invest" into crypto meaning you take fiat dollars and convert it into crypto and attempt to produce gains in any number of ways. Because of this what we mainly are looking for are tokens that hold their values but also that gain in values. I'm not talking about 100x but even a modest 2x is huge when investing and out performs a lot of other places you could put your money.
In this article I want to look at some key parts to look for when investing into any asset such as blockchain crypto.
*This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.
The Cycle
As much as anyone talks about it and tries to come up with another system it really boils down to a core basic across the board. A blockchain needs developers which create things, those things are then used by users if they are good and people are enjoying them at which point you start to see gains either because of fees from the blockchain and/or demand for the token.
Development
Being that development is the starting point and has to happen for any type of success in the first place let's have a look at where that development is happening and then also pinpoint some projects that could end up doing very well. However, as we all know putting a plan on paper is much different then a plan that's being executed and launched.
Where is development happening?
Like always development seems to happen more in Asia then in the USA and other locations. This is mainly because the cost of a developer over seas is far less expensive than one in the USA.
This is a normal trend that always happens from games and web development. Cheaper labor with the same skill set or some times better can be found elsewhere allowing smaller start ups to be able to build powerful programs plus they often don't want a cut of the profits or to be a part of the project afterwards which is a huge plus.
While there are less developers coming into the market there are more experienced blockchain developers today then before. This is a huge plus as you would rather hire someone that has been around and already built a few projects on the blockchain then one that hasn't.
What Blockchains
Ethereum still continues to be the number one blockchain for developers and development. It's also at a rather staggering amount pushing well over 50% of the development still happening.
Solana is coming in at second with Polkadot, ICP, BASE and Polygon coming in 3rd at roughly the same levels.
This shows us that development focus is still Ethereum but this could change and should be watched. If solana for example picks up the slack of Ethereum there could be a hint at a massive rally for the future of the token.
Why?
Because development takes time months if not years of development before something real is pushed out the door. That means if developers start to pile into another blockchain it could be a few months to a year or two and that token could stand a very good chance of going into a rally for the token as these projects start to open up for users and then investments.
Primarily what we are seeing a heavy development on Ethereum and Solana with Solana have a larger new developer input. After this point though it gets wild in terms of new devs and is split all over.
What really got my attention though was ICP Internet Computer. This was a huge talk of the town in 2020 and a lot of people got burned price wise. But what we are seeing is constant and growing development that is happening on that chain which could mean ICP might be a good investment at the moment and possibly gain over the course of this year into next.
MultiChain
A lot of the development languages are both getting easier or simply piggy back off of each other. This allows for developers to now work more easily across more than one blockchain. For example you might have a single dev that does coding for both Ethereum and Solana or a single developer that does Ethereum but then four other smaller not so well known chains.
This also contributes to the wealth of building that is currently happening across many landscapes at the moment.
The other part of this is platforms like Ethereum's EVM means that devs and easily work on Ethereum and also Polygon for example.
Right now we are seeing the biggest explosion of development happening on BASE which is kind of to be expected due to how built and closely tied it is to growth and new users.
This is why we at first saw a vast majority of development on Ethereum because that's where the money was. However with pro crypto governments and new laws that should soon be passing a lot of devs are tapping into BASE (Coinbases's blockchain) as a new hot bed for launching a successful projects and well I gotta be honest I think they are right in doing so.
Posted Using INLEO
The rewards earned on this comment will go directly to the people( @blkchn ) sharing the post on Reddit as long as they are registered with @poshtoken. Sign up at https://hiveposh.com. Otherwise, rewards go to the author of the blog post.
Polygon seems like it has lost some momentum, has the reduction of fees on Ethereum undercut the value proposition of some of the Level 2 and ZK-Rollup solutions?
This is why I m excited for COTI as their tech is not only for Ethereum being an L2 this quarter, but all blockchains and have lost count of who is using and developing the tech on their chain. Solana was one along with XRP and Chainlink and plenty others I cannot recall..
People also buy things purely for social reasons. This is why meme coins are popular. They don't have any particular use case other than allowing people to be part of a group.
!BBH
I love seeing how everyone is sleeping on pulsechain
I have been hodling Ethereum for nore than 4 years.
!PIMP
@tipu curate