This article explores four cryptocurrencies that have the potential to outperform Ethereum in the next bull cycle, highlighting their key metrics, partnerships, and technological advancements.
Investing in altcoins can be likened to buying Ethereum at $80 during the last bear market, as Ethereum went on to achieve incredible gains in the subsequent bull cycle.
Today, there are other coins in the market that have the potential to replicate such impressive growth. In this article, we will discuss these coins, explore the reasons why people are bullish on them, and analyze key metrics and fundamentals that make them promising.
Please take note that this article does not constitute financial advice, and investing in altcoins carries substantial risks.
1. Avalanche (AVAX)
During the bear market, Avalanche has been remarkably active and achieved significant milestones.
Firstly, they introduced subnets, a technology enabling massive scaling for Avalanche. The launch of Evergreen subnets, which are custom subnet blockchains for institutions, further expands the value ecosystem of the main Avalanche Chain.
Avalanche’s official testnet for the ecosystem, the Fuji test net, has already reached an impressive milestone of 400 subnets, indicating substantial scalability for Avalanche.
Ava Labs has also launched Ava Cloud, a tool that simplifies and accelerates the development of blockchain solutions for companies, making it faster and more cost-effective.
A notable partnership with Alibaba, a major tech player, resulted in the launch of the cloud verse.
This collaboration enables businesses to create custom metaverses tailored to their needs.
Furthermore, Circle, the creator of the USDC stablecoin, rolled out a native cross-chain stablecoin transfer protocol, connecting Ethereum and Avalanche. This integration facilitates seamless movement of stablecoins between the two chains.
Avalanche also launched Euro coin, introducing Circle Euro on the Avalanche Network natively, expanding their stablecoin offerings.
Lastly, the SK Planet partnership opens doors to a massive user base in Korea, with access to tens of millions of people and over 90,000 merchants. The SK Planet subnet recently launched, witnessing an impressive volume of transactions, with 100,000 transactions and 30,000 KYC users recorded on the first day alone.
On-Chain Data
Avalanche has witnessed impressive on-chain statistics. Despite having a market cap 1/45th that of Ethereum, it has reached a million monthly active users. Daily transactions have rivaled or exceeded those of the Ethereum main chain, while daily active addresses have grown significantly. Although Ethereum remains dominant in total value locked (TVL), Avalanche has a chance to bridge the gap in decentralized finance (DeFi) in the future.
2. Arbitrum (ARB)
As an Ethereum layer 2 scaling solution, Arbitrum remains closely tied to the Ethereum ecosystem. Nevertheless, its statistics are hard to ignore. Native Arbitrum DApps have gained substantial traction, attracting non-native apps to the network.
Collaborations with Circle have facilitated the launch of USDC natively on Arbitrum, providing safer liquidity options.
Moreover, a “layer 3” scaling solution is set to launch on top of Arbitrum, further enhancing its scalability.
On-Chain Data
Daily transactions and Arbitrum usage are comparable to the Ethereum main chain, and sometimes even surpasses it. On certain days, transaction volumes on the Arbitrum network are doubling or more than those on Ethereum. This is particularly remarkable considering that Arbitrum’s market capitalization is just a fraction of Ethereum’s.
Additionally, daily active addresses on Arbitrum are either equal to or slightly below those on Ethereum, indicating a significant influx of users into the Arbitrum Network. Despite the fact that the ARB token itself holds limited utility as a governance token, the market still values it based on perceived value, and so far, it has demonstrated itself as a robust player in the ecosystem.
3. Injective (INJ)
Injective offers an impressive DeFi platform that is both cost-effective and fast. They prioritize a gasless experience for users, unlike the Ethereum main chain which often incurs high fees. Notably, Injective has achieved remarkable block settlement times of under a second. Additionally, similar to Ethereum, Injective has implemented a Perpetual token burn mechanism, making their INJ token deflationary.
In addition to these features, Injective recently introduced their open liquidity program, a substantial incentive initiative designed to attract more traders and liquidity providers to their network.
The Injective team has also been diligently working on enhancing cross-chain liquidity and interoperability, as demonstrated by their recent bridge to the Solana Network.
Originally established as a DeFi protocol within the Cosmos Universe, Injective has emerged as a robust blockchain in its own right.
It is poised to become a thriving ecosystem for decentralized applications, as evidenced by the overwhelming response from over 300 projects that participated in a recent hackathon on the platform.
4. Oasis Network
Oasis is an AI-focused layer one blockchain, and their partnership with key players in the AI field sets them apart.
The project is led by Dawn Song, a renowned computer scientist with a strong emphasis on AI, even being quoted multiple times in the founding documents of ChatGPT.
One notable collaboration is with Meta (formerly Facebook), where Oasis is actively working on AI technology. They have also formed partnerships with Google and BMW, particularly in the area of privacy technology. Given the increasing importance of privacy in the blockchain industry, Oasis has integrated ZK privacy technology, widely regarded as the most robust and reliable privacy solution in the blockchain space.
Oasis boasts a substantial $235 million ecosystem fund, backed by influential players such as Binance and prominent venture capital firms. It is worth mentioning that the value of their ecosystem fund is nearly equivalent to the current market capitalization of the coin, indicating significant support and potential for growth in the project.
Final Thoughts
While the coins mentioned in this article face the significant challenge of competing with Ethereum, which still holds the throne in the smart contract platform space, they present unique opportunities for growth. Ethereum’s established dominance creates an uphill battle for these altcoins. However, their compelling fundamentals, partnerships, technological advancements, and rising user bases provide potential for substantial gains in the future. As always, cautious and informed investment decisions are essential in the volatile world of cryptocurrencies.