Youtube channel Coin Bureau analysts shared their picks for the best crypto category of the year in a new video yesterday. SUI, APT, and NEAR were altcoin projects that stood out in terms of earnings.
Top 10 altcoin categories you must follow
Coin Bureau analysts divided their listings into 10 categories in the video. They explained some of the challenges and opportunities associated with each category. The analysis comes after many altcoins have recorded new local lows in price over the past few months. The 10 altcoin categories that analysts highlight at this point are as follows…
Solana killers
The first category of cryptocurrencies covered in the video were Solana killers. The market is full of projects that will potentially surpass Ethereum. However, according to Coin Bureau analysts, Ethereum is proving to be a lasting name. Solana killers mentioned in the video include Sui (SUI), Aptos (APT), and Near Protocol (NEAR).
These 3 projects have the potential to surpass Solana if they don’t survive the FTX collapse. Coin Bureau believes SOL will be a crypto to watch in the next bull run if Solana overcomes the challenges brought by the recent FTX crash and maintains its lead against SUI, APT and NEAR.
Ethereum (ETH) based Layer-2 projects
In this category, there are projects that aim to reduce Ethereum’s transaction fees and increase its speed.
At this point, analysts nominated projects such as MetisDAO (METIS), Polygon (MATIC), Arbitrum (ARB), and Optimism (OP). They also warn that competition between projects will intensify as more projects enter the market.
decentralized storage
Projects included in the next category, decentralized storage are Filecoin (FIL), Arweave (AR) and Akash Network (AKT).
Analysts expect decentralized storage to become more important in the future as many Layer-1 projects currently store data on centralized cloud servers.
However, an important caveat for projects in this category is that Tier-1 and Tier-2 projects build their own storage solutions. In such a case, it will eliminate the need for 3rd party decentralized storage solutions. Second, decentralized storage solutions are a new concept. At the same time, they have not yet been extensively tested by the market.
Decentralized identity
According to analysts, this category will play a critical role in unlocking the next crypto use cases. Civic (CVC), Kleros (PNK), KILT Protocol (KILT) and Polygon (MATIC) are the main altcoin projects that stand out in this field.
In the near future, it may become a legal requirement for users to have decentralized identities linked to their real-world identities before interacting with DeFi products. If that happens, it could cause cryptos in this category to receive a massive price increase.
1/ @DeloitteCH – the world’s biggest accounting firm – is the latest major enterprise partner to come to the Polkadot ecosystem, choosing cutting-edge tech provided by the @Kiltprotocol parachain to enhance its identity protocols. pic.twitter.com/nkqr0i1s0I
— Polkadot (@Polkadot) May 4, 2023
cryptocoin.com We have mentioned that Deloitte prefers KILT Protocol for digital people. In a hot thread, Polygon and Ethereum developers voiced their concerns about Worldcoin.
Decentralized finance (DeFi)
Projects in this category aim to replace institutions in the traditional financial system. Analysts are quite optimistic about this category of cryptocurrencies.
Projects mentioned for this category include Aave (AAVE), Lido DAO (LDO), and Uniswap (UNI). In terms of warning, these projects face great regulatory risk given that they aim to replace traditional central financial institutions. Also, these projects are more prone to hacking and cyber attacks.
interoperability projects
This category consists of projects that have the ability to share resources across multiple Blockchain networks. In addition, the projects also provide connected Blockchain projects with real-world and real-time data.
Chainlink (LINK), Flux (FLUX), Cosmos (ATOM) and Axelar (AXL) are the prominent altcoins of the category.
The potential demand for interoperability projects is further compounded by the fact that many crypto use cases will require interoperability. Despite this, Coin Bureau warns that interoperability projects will only be used if the global crypto adoption rate increases.
Decentralized social media
According to the video, decentralized social media projects such as the LENS Platform (LENS) and Theta Network (THETA) can generate positive returns for investors in the long run. As governments around the world constantly try to censor the internet, social media users will gradually start using these decentralized social platforms.
However, Coin Bureau noted that the adoption of these projects will depend on how easy it is to use these platforms. There is also the risk of decentralized social media platforms being subject to the same regulatory scrutiny as DeFi products.
Blockchain games
While the hype surrounding the Play-to-Earn space has subsided, Coin Bureau continued to cite 3 blockchain gaming projects that every investor should keep an eye on as they enter the next bull run. In the video, Axie Infinity (AXS), Gala (GALA) and Decentraland (MANA) stood out as some of the projects to watch.
In the video, analysts noted that blockchain games will be one of the main drivers of mass crypto adoption as they will open up many great use cases in the future. Unfortunately, there is still some work to be done by the team of each project as there is no blockchain game that can support millions of users yet.
wallets
Many users in the crypto space are unaware of the vital role that Blockchain wallets play in the crypto space. That’s why wallets are the next category mentioned in Coin Bureau’s video. Popular wallet solutions currently on the market include Metamask, Fantom (FTM), Avalanche (AVAX), and ThorFi (THOR).
It is speculated that these projects may also launch their own management tokens in the future. Even Metamask’s team hinted at the possibility of Metamask getting its own token in the medium term. In such a case, there may be a market value competition among all wallet providers.
Privacy coins
The last category covered in the video is privacy cryptocurrencies, which aim to hide the identities of owners and users transacting on the network. For this category, Coin Bureau named ProjectOasis (OASIS), Monero (XMR), and Secret (SCRT) as projects to watch as it enters the next crypto bull market.
These projects currently face the highest levels of regulatory scrutiny as a lot of illegal activity can take place in their networks. Coin Bureau noted that regulators may continue to put pressure on these privacy-focused projects in the future, which could negatively impact their prices.
