Cryptocurrencies That Can Shape Blockchain Technology

Before the pandemic, and even in its earliest stages, cryptocurrency looked like a rocket ship unlikely to slow down. Even in September of that year, we wrote about “The Changing Cryptocurrency Landscape” and noted that cryptos and other tokenized assets only seemed to be getting more important to everyday investors. Investment in cryptos was at an all-time high, and in many cases, value projections remained strong.

In the two years since then, however, the crypto market has stalled out in a significant way. Major assets suffered prolonged crashes, and just recently analysts noted that Bitcoin had fallen below $19,000 –– marking an ongoing plummet past its “psychological threshold” of $20,000. This is just the most recent indicator that the crypto market that looked so promising two years ago is, for the time being, in dire straits.

This change has thrown the future of leading cryptos (and indeed the market overall) into a state of flux. Some analysts still see massive rebounds on the horizon and predict that Bitcoin and its counterparts will see their values soar at some point in the next year. Others believe the recent crashes have had a permanent impact, and that cryptos’ best days are behind them. Only time will tell which side has the more accurate assessment.

At the same time, if we look beyond market trends and instead focus on asset usefulness, it may be easier to identify cryptos that still have strong long-term potential. Specifically, those that impact blockchain technology –– expanding its capability rather than simply living on digital ledgers –– have functions that will remain useful even if crypto speculation slows. This is not to say there are guarantees to be found. There are not. However, the following are four cryptos that, in theory, have the potential to retain long-term value amidst a prolonged crash.

Ethereum

Ethereum has enjoyed a sort of “next up” status in cryptocurrency for some time now. The closest to Bitcoin in value (if still relatively far behind), it is more of a blockchain platform than a currency. Ethereum exists to enable the development of applications and smart contracts, and investors value Ether tokens because they essentially serve as “gas” for Ethereum transactions and processes.

That in and of itself suggests that Ether tokens and the Ethereum network will continue to have value for a long time. This is because the Ethereum network is increasingly being viewed as a sort of "new internet," and the processes and applications that can be built onto it are essentially limitless. Already, some notable case examples include applications such as:

Alice – A platform meant to make crypto-driven philanthropic efforts more transparent.

EtherTweet – An uncensored version of Twitter, existing wholly on the blockchain.

Etheria – A Minecraft-like digital game world in which players can build creations without fear of disruption or hacking.

These are just a few examples, but they demonstrate why some see Ethereum as a new internet in the process of being built. As such, the network is effectively reshaping the concept of the blockchain –– turning it from a transaction platform into a far more dynamic and disruptive space.

Cardano

Cardano retains its long-term potential for the same basic reason that Ethereum does. Designed for similar purposes, it is described by its developers as “a blockchain platform for changemakers, innovators, and visionaries.” In other words, Cardano, too, is built for ongoing development, and as long as there are creators building on the platform, the platform (and its corresponding digital asset) will be valuable. Some examples of Cardano apps and functions include the following:

Cardahub – An NFT marketplace that allows for the minting and authentication of digital assets on the spot.

Book Token – A blockchain-based ebook and audiobook marketplace.

Kick – A fully transparent DeFi crowdfunding solution for causes, startups, etc.

As with Ethereum, Cardano is effectively transforming the blockchain concept from that of a transaction hub to something resembling a new internet. Also of note, however, is that Cardano is meant to function like Ethereum with fewer ill effects on the environment. Some believe that in time, the notion of a more eco-friendly alternative to Ethereum will catapult Cardano to higher prices (though predictions to this effect have proven premature to date).

Polygon

As much long-term potential as Ethereum has, it is also true that the network has at times struggled to handle the sheer volume of transactions demanded of it. Polygon is a sort of side network that was designed in response to this problem. It functions by taking batches of transactions away from Ethereum, processing them externally, and then re-submitting them as a single bulk transaction –– which Ethereum is better able to handle. The broader idea is to apply this functionality to numerous other networks, creating in effect an “internet of blockchains.”

From an investment standpoint, people buy Polygon tokens (denoted as MATIC) simply to speculate on the potential value of the network. Though it should be noted that these tokens, in addition to being held as investments, can also be staked within the Polygon platform in exchange for additional tokens.

It is ultimately the function of Polygon that will contribute to blockchain transformation though. If networks like Ethereum and Cardano are to evolve into new-age internet systems, Polygon may well play an essential role in enabling them to handle the associated volume of digital events.

Polkadot

Polkadot is a little bit like Polygon, in that it exists in a sense to establish an internet of blockchains. Rather than processing transactions for other blockchains, however, Polkadot simply facilitates interaction between them. Polkadot is a crypto protocol that helps data to be transferred between different blockchains that would otherwise be incompatible.

As with Polygon, people invest in Polkadot’s token (DOT) to buy into the potential long-term value of the protocol. Here, too, tokens can also be staked on the platform so that investors can earn additional assets. The broader value though is in connecting assorted blockchain networks. Through technology like that at the core of Polkadot, it may be that blockchains more broadly become a sort of internet (as opposed to anyone like Ethereum or Cardano representing an internet unto itself).

Once again, it’s vital to recognize that the future of the crypto market is unpredictable, and currency projections vary even among experts. Furthermore, the networks and tokens listed here will not necessarily gain value in the future. Because blockchain tech is in and of itself more permanent than any one cryptocurrency, however, there is logic to identifying assets that play roles in the tech’s development. These are four such assets that, in the ways described above, are already poised to play roles in the blockchain's evolution from "digital ledger" (as it is so often described) to the new-age web.