Posted 10 months ago | by Ben Armstrong
The 3 Top Crypto Niches that Could Dethrone DeFi
Decentralized Finance (DeFi) has dominated the crypto news in recent months with platforms like Compound starting its token distribution, OMG Network receiving 80 million in funding, Aave breaking the $100milestone, and massive adoption amid the Covid-19 pandemic.
The advantages and value DeFi brings to the table are clear as they have added momentum and innovation to the cryptocurrency industry. However, there are always other niche cryptocurrencies ready to make the crypto-throne their own.
Crypto is Inherently Cyclical
Bitcoin was created as an alternative to fiat currencies to provide its users with alternatives and control over their money, which later evolved into other applications of blockchain and the creation of altcoins.
Crypto as a whole is intended to provide alternatives so users can fulfill different needs. As these needs evolve and current options are not enough to fulfill them, new options emerge as one-coin-fits-all is not a possibility.
Cryptocurrencies like EOS, LiteCoin, and Neo were at the top just to fall in the ranking later on when other altcoins replaced them. Rc20 and smart contracts lost their place to exchange coins, who then lost it to DeFis as people realized the need for Decentralized financial systems amid the pandemic.
As global conditions and user needs change, cryptocurrencies adapt and fill those holes left by their predecessors as long as humans exist.
First Niche: The Lift-All-Boats Coins
Just like Kennedy said when referring to Economic Policy, "a rising tide lifts all boats" applies to niche coins such as chainlink and Unibright as their success would improve the crypto environment as a whole.
While Chainlink works as a bridge connecting DeFi and this niche by helping blockchain merge with off-chain enterprise, which enables any crypto project to find real-world applications.
Unibright offers a similar alternative to companies by using a template system in a way reminiscent of WordPress’s website building, an innovation that brought users the ability to easily create their websites and might do the same for companies but focused on blockchain.
Bosagora, on the other hand, is a crypto project that provides funding for other crypto projects by allowing its nodes and community to vote on which projects ideas are the best and have the most potential, which will then get funded.
By enabling crypto projects with solid business plans to get off the ground once they are approved by the platform’s congress members (stackers) through a democratic decision-making process, Bosagora would open the door to new disruptive crypto projects to succeed in the market.
By ensuring these projects are high-quality before being funded, users can rest assured that no fraud or garbage will make it trough as well as collaborating on the shaping of the crypto space by weeding out and supporting the future game-changers.
Second Niche: Gaming Coins
It is said that the best way for blockchain to achieve mass adoption would be for people to realize they are using it, which makes gaming the perfect ecosystem for blockchain to start with.
With free-to-play models and microtransactions ruling the videogame market, gamers around the globe purchase in-game assets that range from merely esthetic to game-changing.
Companies and gamers alike have struggled when it comes to digital ownership of items and games alike, as they are still owned by the developer even after being paid for by the player and results in the existence of black markets, account transfers, and loss of assets due to bans or hacking.
The use of Non-fungible tokens would potentially solve this issue, allowing payers to truly own their digital assets and interact with them out of the game, exchanging them or increasing their value.
Enjin Coin is the current leader in the gaming space at this time as it offers its blockchain videogame development engine as well as offering users the option to create forums, virtualize assets, and complete payments.
Wax, on the other hand, is not as big as Enjin at this time but there are reasons to believe it will be having a good run with its open marketplace for gaming collectibles, where users get discounts by using the Wax token.
Third Niche: The Digital Currency
With countries like China, Italy, and France showing interest in digital currencies, this has become a big topic in recent months as other governmental entities like the European Union join the discussion.
While some crypto users still insist on the idea that bitcoin and digital currency are the same, this is just not true at this time as bitcoin is too slow to operate as such and would need a complete makeover to be able to do so.
Altcoins created under the premise of being a digital currency are focused on getting faster, offering privacy, and providing their users with ease of use daily.
While digital currencies such as the digital Yuan, Dollar, and Euro, are currently under development and consideration, these would be centralized currencies under the control of a specific government and would bring all of the risks we see in fiat currencies today.
Keep an Eye on New Ideas in DeFi
Decentralized digital currencies like Bitcoin Cash, Dash, and DigiByte, are some of the coins that are expected to lead the charge in the next bull run.
However, the potential for the most explosive gain belongs to Nimac due to how high its ceiling is, its presence in KuCoin, and has experienced big gains this year, which means that Nimac has high liquidity and prime to continue its pump
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