Since the launch of Bitcoin in January 2009, cryptocurrencies have ceased to be just a payment method. Lending, the metaverse, NFTs, broadcast platforms, and most importantly, DeFi are some of the features currently only cryptocurrencies can offer. 3 researchers uncover technologies that will lead the financial revolution among all altcoin projects.
RJ Fulton highlights this altcoin project for financial revolution
Credit platforms such as Aave, Compound and Curve have become the most viable options for financial products. These protocols differ slightly from traditional products. However, they all have the same purpose. Providing a blockchain-based alternative to traditional finance known as DeFi. In this context, Ethereum is the common platform for developers and financial products seekers. We can think of Ethereum as the home of DeFi applications. Smart contracts are often used in some traditional financial institutions to automate almost any task that needs to be done by a person.
Since Ethereum, the number of smart contract-based blockchains has increased significantly. New projects like Solana, Cardano, and Avalanche are all vying for position in the DeFi economy. Despite current efforts, these rivals have not been able to dethrone Ethereum. Simply put, without Ethereum there is no DeFi. Therefore, investors who want to find the cryptocurrency that can most upset existing traditional financial institutions need not overcomplicate their search. Investors should look no further than the cryptocurrency that was responsible for driving the creation of DeFi in the first place.
Neil Patel picks Solana despite all the setbacks
Solana operates a PoS consensus mechanism. That means investors can lock their holdings, earn returns, and help verify transactions on the network. However, Solana also uses PoH, which allows computers to agree on time without having to communicate with each other, freeing up block space and accelerating throughput.
In February, Solana Labs, the organization that spearheads the advancement and development of blockchain, launched Solana Pay. Solana Pay essentially allows transaction connectivity via QR code on stablecoins such as SOL or USD Coin. The altcoin project has reached thousands of users with all these features that have emerged over time. Analyst Neil Patel recommends keeping an eye on Solana for the rest of the year.
Michael Byrne’s choice of altcoin: Aave (AAVE)
Companies like Solana and Ethereum are well positioned to disrupt P2P payments and a host of other industries. On the other hand, Ethereum-based Aave, worth $1.5 billion, is specifically focused on disrupting the lending industry. Aave users can lend or borrow Ethereum or the largest stablecoins such as Tether and USD Coin.
Aave does not need to find a matching counterparty for a loan. Instead, it streamlines the process by creating pools of capital that users can deposit or withdraw. Aave users who lend their cryptos to the platform earn a return on it. Borrowers provide collateral and pay interest on the assets they borrow. An important advantage for depositors is the ability to generate passive income. What is most interesting about Aave are the “tokenized versions” of products. These could be real estate, emerging market consumer loans, or even shipping and shipping bills.
As a result, we are still a long way from Aave, which has truly hijacked traditional banks. However, it certainly has what it takes to become a viable competitor one day, according to analyst Michael Byrne.
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