The Cryptocurrency market has greatly expanded over the past several years, but investors looking to get a taste of digital coins have a wide array of options beyond Bitcoin (BTCUSD) and Ethereum (ETHUSD). Let’s take a look at four relatively new Cryptocurrencies that have been drawing traders’ attention and are now available at Plus500:
Axie Infinity’s (AXSUSD) coin is a relative newcomer to the roster of digital currencies and especially appeals to traders looking to get a taste of the NFT market. This Ethereum-powered token powers an online video game with the same name, first released by Vietnamese gaming design studio Sky Mavis in 2018.
What makes Axie Infinity innovative and so attractive to online traders is the connection between gameplay and a blockchain-based cryptocurrency wallet. This game allows players to trade and battle each other using Non-fungible token-based avatars called ‘axies’. Via participation in the game, players earn cryptocurrency rewards. In a time when some sections of the crypto market are experiencing significant turbulence, blockchain-based gaming grew by a whopping 92% in 2021.
Already, over $3.6 billion worth of the Axie Infinity coin has been traded in-game, and the platform boasts nearly three million daily active players. In the past two weeks, the coin has risen in value by nearly 40% and is trading at $66.76 as of the time of this writing. Many analysts expect AXS to continue on its path of growth as the game continues to attract new users looking to try their hand at crypto and NFT trading via gameplay.
Chainlink Set to Grow?
Chainlink (LINKUSD) is another Ethereum token, powering the eponymous network, which could be set for growth this year. The Chainlink network allows smart contract holders to connect to external data sources and payment systems securely, and its coin’s value has increased by nearly 20% in the past two weeks. While Chainlink is currently ranked in eighteenth place among cryptocurrencies by market cap, the Chainlink network is considered by many to be the market’s most trusted decentralised data provider, securing $75 billion worth of value in its network.
The Chainlink network saw impressive growth over the course of 2021, and according to CEO Sergey Nazarov, some key changes to be implemented this year could have the network’s token poised for further growth.
While the network is already integrated with over one thousand projects worldwide, the network’s laboratories will implement cross-chain interoperability protocol (CCIP) this year, allowing developers to securely create applications capable of communicating and trading across networks.
Another change to the network could also further cement its status as one of the market’s top data providers. The Chainlink network itself is made up of several subset networks that communicate with each other to confirm data metric accuracy. According to Nazarov, the network will begin using a method known as ‘staking’ to further ensure accuracy and security. With staking, at every level of the Chainlink network, ‘watchdog’ nodes will verify whether the data being transmitted is accurate, and send out a warning signal if any signs of tampering become evident.
Chainlink has increased by 20% to $18.50 in the past two weeks, and if the network succeeds in further consolidating its status as a massively-integrated, highly-trusted data provider in the crypto market, the bullish predictions of many digital coin analysts for the LINK coin’s growth could be realised.
Blockchain Boosting Uniswap
Uniswap (UNIUSD) is one of the largest decentralised cryptocurrency exchanges in existence today and utilises a blockchain network of smart contracts to facilitate coin exchange. The Uniswap network uses automation to provide trading liquidity. This means that a pair of tokens are added to each smart contract in the network, and when the contract is traded, a portion of the fees collected from the trade go to those who originally added the pair. This trading protocol may appeal to many on the crypto market since prices are set by a supply-demand algorithm rather than order books, the method utilised by centralised exchanges like Coinbase (COIN).
Additionally, listing tokens on the exchange is free, which allows trading volume to increase, and the exchange is the fourth-largest on the crypto market by daily trading volume. The Uniswap network’s coin already has a market cap of over $24 billion and was trading at just under $12 as of Thursday morning, an increase of 3.6% so far this month. With the network’s status as the largest decentralised exchange on the Ethereum blockchain currently unchallenged, this crypto could continue to grow in 2022.
Filecoin Rewards Storage
Filecoin (FILUSD) is yet another decentralised crypto network with a proprietary digital token. The Filecoin network allows users to rent out digital storage space in exchange for the network’s crypto coin, and its decentralised nature makes it less vulnerable to attack. As the amount of digital data in today’s world continues to expand, Filecoin seeks to reward users for allowing others to utilise their unneeded storage space.
Traders seem to have warmed up to Filecoin’s founding idea, and the peer-to-peer network has already notched over a million storage deals, with its coin’s market cap reaching upwards of $12 billion. So far this month, the FIL token has increased by over 12% in value. According to many, the need for digital storage may not be set to shrink in the near future, so the Filecoin network, and the token powering it, could continue on an upward trajectory in the coming year.
Despite recent headwinds facing the crypto market, the list of tradable digital coins continues to grow. As more and more lay traders seek to take advantage of this sector’s prospects for growth, it remains to be seen whether these coins can live up to expectations.