Which Blockchain sector will ignite the next bull run? Convening on Finance Magnates’ Youtube post, experts detailed the next bull catalysts for altcoins. The first altcoins and titles were as follows…
Watch out for this industry, which could be the next bull fire.
The crypto money market, which was hit hard by the bankruptcy of FTX, once again understands the importance of DeFi and DEX projects. During the crisis, while altcoins such as FTX and Alameda-linked FTT, SOL and SRM collapsed, the NFT market also suffered its share of scandals. Meanwhile, Solana was home to some of the most important NFT projects in the market. Solana’s depreciation directly dragged the NFT market as well.
When it comes to NFTs, there were some issues before the FTX crash in November. NFT tokens and coins were criticized for having zero utility. Some examples would be CryptoPunks and some Art Blocks collections like Fidenza and Ringers. These collections came under fire because they did nothing but increase in price.
On the other hand, there are NFTs that are intended to have a clearly defined utility, and those that fall somewhere in between. Bored Ape Yacht Club is perhaps the best-known example of the latter. They only have value as a prestigious digital collectible item. They also function as membership passes that provide access to the Yuga Labs ecosystem and future plans.
Then there are fully functional NFTs like the metaverse terrain. These are NFTs linked to real-life brands and companies. In this last category, you can find the likes of Starbucks, Nike, Adidas, and a few high-end fashion brands that benefit from NFTs. So which NFT ecosystem will stand out in the next bull? Analysts from Finance Magnates cite three well-established Blockchain networks.
Here are the altcoins at the heart of the NFT market
While evaluating NFTs, it is necessary to pay attention to the Blockchains they are working on. The primary Blockchain is always Ethereum. We see that a mutually beneficial cycle continues in the Ethereum network. Ethereum has performed particularly well in the past crypto cycle. Analysts expect this to continue in the future. There are several major events in favor of Ethereum behind this. The first is to complete the transition to Proof of Stake. Also, Web3 will be a significantly attractive concept. Additionally, networks and communities around Ethereum are active, visible and persuasive.
The fact that the top NFT collections are Ethereum-based and priced in ETH places the leading altcoin at the center of the market. At the same time, increases in ETH price are turning in favor, raising these NFT price tags in dollar terms.
Polygon (MATIC)
One of the next trends for the cryptocurrency market is the Web2 to Web migration. Polygon stands out in this field with its partnerships with giants such as Reddit, Instagram and Adobe. It is a side-chain, a helper of the Ethereum network, with a Layer 2 scaling solution. Analysts think Polygon will play an important role in the next bull as more high-profile partnerships may follow. In partnership with Polygon and Disney cryptocoin.comWe have included it in this article.
It’s Creator Week at @Meta, and we’re announcing a bunch of new tools to help creators build their businesses — including a way to make and sell digital collectibles (NFTs) right on @Instagram! ✨ We’ll start testing this w/ select creators soon. 🧵[1/6] https://t.co/DvJT5KZGzK
— Stephane Kasriel (@skasriel) November 2, 2022
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Solana has taken a big hit lately because of the FTX and Alameda relationship. However, it currently manages to remain the second most used NFT platform after OpenSea. A few high-end Solana NFT collections continue to perform well, such as the Magic Eden.
Here again, some NFTs are able to recover quickly from market shocks. This reinforces the idea that they operate on their own terms, independent of the blockchain. Additionally, there are other networks with resilient, sprawling NFT communities such as Cardano and Avalanche. Experts still hold that the trend could change rapidly, with NFTs leading a crypto-wide recovery, or just branching out and performing uniquely.
