5 Hot Prospects For The Next Crypto Bull Run
The crypto ecosystem is often seen as a world of opportunity, with an ecosystem that’s now valued at over a trillion dollars. However, spotting those opportunities isn’t nearly as easy as it looks. With more than 10,400 digital assets listed on CoinMarketCap, anyone looking for the next gem is likely to be overwhelmed with hot prospects.
With the current economic uncertainty afflicting the world and slowing down crypto’s growth trajectory, many builders are working quietly to improve the foundations of their projects. A great deal of development work is going on under the radar in areas such as NFTs, blockchain security, DeFi and the metaverse, and a number of promising new initiatives are simply waiting for the next bull market to make their mark.
There are no guarantees in crypto, but what follows are five especially promising projects that digital asset enthusiasts should keep an eye on for when the market recovers.
Serenity Shield
Crypto holders will always be careful about the security of their digital assets, and so Serenity Shield is likely to always be able to find demand for its services. The project aims to tackle the very specific issue of crypto heritage, or essentially, what happens to your crypto if you die?
Many crypto users will inform their next of kin where they have saved their seed phrase so they can access their digital assets in the event of their untimely demise, but this is a risky approach. Serenity Shield offers a better solution with its NFT-based Strongbox offering.
Crypto holders can create an account on Serenity Shield’s dApp, and use it to encrypt their sensitive seed phrases and other important data. They’ll receive three NFT keys in return, one of which is held by the account owner, the second to be given to their designated heir, and the third to be locked within Serenity’s own smart contract.
Should the owner of the account pass away, the heir can use their NFT key after a designated period of time to obtain the second key held in the smart contract. With two out of three keys, that person can then retrieve the seed phrase locked in the strongbox to access the digital assets of their late spouse/sibling/parent/friend.
Of course, the account owner can also use Serenity Shield’s service to reobtain their seed phrase in the event they lose it, meaning they have a safe way to recover their cryptocurrency too.
Peer
In the metaverse world, few projects look quite as promising as the soon-to-launch Peer, which is building a kind of augmented reality-based social metaverse network.
What’s unique about Peer is that rather than build a virtual world, it simply uses AR technology to overlay graphics across the real world itself. In this way, it’s creating a unique metaverse that’s as large as the world itself, spanning the entire surface of the globe to create an environment where players can interact with digital assets anywhere.
Peer explains that players will be able to drop NFTs, messages and other digital assets in any physical location, where they can be discovered and interacted with by other users. It’s a metaverse world that seeks to get people out into the real world and explore new use cases for blockchain.
It sounds like the perfect environment for NFT creators especially, as it will enable artists to exhibit their digital art in real-world locations and encourage them to visit them. Moreover, a business could create metaverse-based offers, enticing people to visit various real-world premises to obtain a full NFT collection that entitles them to significant benefits.
Peer says users will be able to access its AR metaverse using any iOS or Android device, as well as a dedicated headset that it’s planning to release later this year.
Soil
There has been a lot of interest in the idea of real-world asset tokenization and its potential to bridge the gap between DeFi and traditional finance. Soil enables this by reshaping corporate debt and fixed-income statements and enabling them to be used as collateral for loans.
Soil has created a debt marketplace where startups and other companies looking for finance can obtain loans using tokenized collateral. Crypto investors can lend their stablecoin capital to these companies via lending pools to earn yield.
The marketplace targets companies that have a solid business plan but are unable to secure traditional financing from venture capitalist investors or banks. Soil is built atop of Polygon, the Ethereum scaling solution, and provides various funding options for companies that need to finance their operations. As a debt marketplace, Soil facilitates connections between these borrowers and lenders, taking a small percentage of the repayments as its main source of revenue.
Compared to other DeFi lending protocols such as Aave and Compound, Soil offers attractive, fixed and secured yield on stablecoins such as USDC and USDT. It generates its yield in real currency, meaning its model is not based on the speculative value of most cryptocurrency tokens. In this way, it enables investors to avoid the natural volatility of the crypto market, which is an extremely attractive proposition when the crypto economy is stuck in a rut.
Optimism
Aiming to improve Ethereum’s scalability is Optimism, a promising Layer-2 network that provides dApps with superior performance.
Ethereum is widely criticized for its slow transaction and expensive gas fees, which result from network congestion. Optimism works by using “optimistic rollups”, which are a technique that involves bundling transactions together off-chain and processing them as one, single transaction. It enables a large volume of transactions to be verified much more rapidly and at lower cost, while enjoying the same high security of Ethereum itself. For this reason, Optimism is especially favored by DeFi dApp developers, as it means traders can quickly move large amounts of tokens at low costs.
A large number of dApps are building on Optimism, including various decentralized exchanges, trading tools, NFT projects and cross-chain bridges that enable blockchain interoperability.
Optimism competes against a number of Ethereum scaling solutions, but where it stands out is with its single-round fraud-proof mechanism, which relies on Ethereum’s L1 to execute the entire transaction on its L2, with disputes settled on-chain. This makes transaction verification instantaneous, though it can mean higher costs.
Fluidity Money
One of the more recent entries into the DeFi space, Fluidity Money has captured a lot of interest due to some unique features.
As soon as users register with Fluidity, they can convert multiple digital assets into wrapped tokens on a 1:1 basis. For example, if a user invests USDT tokens, they will be swapped for wrapped Fluidity tokens representing the stablecoin, in this case, fUSDT.
Fluidity then invests these funds automatically into various lending pools, enabling users to generate yield based on the amount of crypto they have converted. It provides a simple way for crypto holders to earn a passive income without needing to employ their own investment or trading strategies.
A second major benefit of Fluidity is that, in addition to the regular yield investors generate, it operates a kind of lottery, giving users a chance to win much larger dividends and add significantly to their crypto pile. Also, users can take the fluid assets they hold and spend them on real-world products and services to earn rewards. Fluid assets can also be used in the Web3 ecosystem, for NFT purchases and metaverse payments, or else traded on decentralized exchanges. In this way, Fluidity rewards DeFi users for spending their fluid assets instead of using their cash.
Fluidity aims to provide the best of both worlds for crypto holders, giving them the opportunity to invest and earn yield while having the freedom to spend those invested assets as they please.
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