The cryptocurrency markets have shown some signs of life recently, but we’re still squarely in the middle of a bear market from a broader perspective. Still, that doesn’t mean that nothing interesting happening. Let’s take a look at 3 cryptocurrency and blockchain projects that will be worth watching this week.
3. Polygon (MATIC)
Polygon is a Proof-of-Stake blockchain platform that’s compatible with Ethereum. It has emerged as one of the most popular Ethereum alternatives after Ethereum started suffering from high transaction fees. Polygon’s native asset is called MATIC, and it is used for key operations on the network like staking and paying transaction fees. Polygon is one of the first Ethereum scaling platforms to gain significant adoption, which helped the team launch a number of initiative to further accelerate growth.
Why Polygon? Polygon partners with Nubank, Reddit NFTs gain traction
Polygon has been on a roll with securing notable partnerships—the project recently announced a partnership with Brazil-based neobank Nubank, which will be launching a crypto token using Polygon’s technology.
The crypto token is dubbed Nucoin, and Nubank plans to use it as a loyalty token for its customers. Nucoin will be launched using Polygon Supernets, a technology developed by Polygon that makes it possible to launch blockhains fine-tuned for specific applications. Nucoin is expected to launch in the first half of 2023.
Some of the previous partnerships secured by Polygon are also bearing fruit. Most notably, Reddit’s Collectible Avatars, which are NFTs on the Polygon blockchain, have been seeing significant traction as of late. Per a Dune Analytics dashboard, there’s now almost 3 million holders of Collectible Avatars, with a total sales volume of about $8.7 million.
2. Klaytn (KLAY)
Klaytn is a public blockchain project launched by Kakao, one of the largest publicly traded tech companies in South Korea, through their blockchain division GroundX, in June 2019.
The Klaytn project’s ambition is to offer a simple, user-friendly experience to maximise the adoption of blockchain technology, making the user experience like the one we have on websites and mobile apps, where the technology making it all possible is invisible to the user.
The Klaytn blockchain is compatible with the Ethereum Virtual Machine (EVM), and uses a practical Byzantine Fault Tolerance (pBFT) consensus mechanism. The network is maintained by three types of nodes, including consensus nodes, proxy nodes and endpoint nodes. Consensus nodes are operated by the Klaytn Governance Council, which is a group of organizations selected by Klaytn. Essentially, this means that the Klaytn blockchain sacrifices some decentralization in order to achieve better performance.
Why Klaytn? Klaytn gets a boost from KLAY block reward reduction and buyback program
The KLAY markets have been in overdrive recently thanks to two main developments that could make the token a more attractive asset to hold. The first major change is a reduction of Klaytn’s block rewards from 9.6 KLAY per block to 6.4 KLAY per block. This change is part of a governance proposal that also adjusted how the block reward is distributed to various stakeholders in the Klaytn ecosystem:
- Governance Council: 50% of the block reward
- Klaytn Growth Fund: 40% of the block reward
- Klaytn Improvement Reserve: 10% of the block reward
In addition to the block reward changes, the Klaytn Foundation also announced a buyback program. The program entails purchasing KLAY from the open market and burning the purchased tokens. The Klaytn Foundation is funding the purchases from its stablecoin reserves. However, it’s currently unclear how much the foundation plans to spend for the buyback program.
These developments helped drive a huge rally in the KLAY markets, with the price of the token doubling between October 22 and October 27. However, this might also mean that the KLAY markets are overextended and that a price correction could be in play soon. In any case, the KLAY markets will certainly be fascinating to follow in the next few days.
1. Dogecoin (DOGE)
Dogecoin is a cryptocurrency that was launched in 2013 as a parody of the speculation surrounding Bitcoin and other cryptocurrencies. Despite its humorous origins, Dogecoin has stood the test of time in the rapidly evolving cryptocurrency market and still maintains a strong community of enthusiasts. Dogecoin received a lot of attention during the cryptocurrency market bull run of 2021, which propelled the coin towards the top of the cryptocurrency market cap rankings.
One of the biggest reasons why Dogecoin went viral were frequent mentions and endorsements by Elon Musk, the CEO of Tesla and SpaceX. Dogecoin’s success has also spurred the creation of many copycat “meme coins”, most notably Shiba Inu (SHIB).
Dogecoin uses the same Proof-of-Work algorithm as Litecoin, allowing miners to “merge mine” both Dogecoin and Litecoin at the same time. While Dogecoin was once seen as a “byproduct” of Litecoin mining, DOGE has actually managed to surpass LTC in terms of market capitalization. Unlike most Proof-of-Work cryptocurrencies, which have a cap on their maximum supply, the maximum supply of DOGE is theoretically unlimited. The DOGE supply expands by 5 billion coins every year.
Why Dogecoin? Elon Musk’s acquisition of Twitter is set to bring more attention to Dogecoin
The Dogecoin markets are all about hype and momentum, and the project’s number one cheerleader Elon Musk has been making headlines again after completing his controversial acquisition of Twitter.
While the news surrounding Musk’s Twitter acquisition will likely mostly be focused on changes to the company’s C-suite, there’s sure to also be some speculation about Dogecoin’s potential involvement in the Musk’s plans for Twitter.
The acquisition news helped revitalize DOGE, which was trading sideways around the $0.060 price level from October 15 to October 24. The Dogecoin price ascended to a local peak of just under $0.085 before sellers stepped in to collect profits.
Regardless of how much weight there is to the rumors about Dogecoin and Twitter, it’s probably reasonable to expect heightened levels of volatility in the Dogecoin market while the Twitter acquisition news is still hot.