Ethereum is a community-run blockchain network that powers the Ether token and thousands of other decentralized projects.
Ethereum has maintained its position as the second-largest cryptocurrency by market capitalization, after Bitcoin, over the last few years, despite the multiple bear markets. Ethereum is a more complex blockchain than Bitcoin, and in fact, it is more complex than many others because it has extensive use cases and powers a global network that hosts a complex ecosystem of decentralized applications, non-fungible tokens, and decentralized finance. All these characteristics have triggered spikes in Ethereum price, which has followed an upward trajectory since the crypto market has shown signs that it heads towards a bull phase, Visit uk crypto tax
Discussing Ethereum
Before listing the most popular cryptocurrencies listed on Ethereum, it’s essential to figure out what they are. It was created as a decentralized open-source blockchain platform in 2015, and it has a native token called Ether. Vitalik Buterin, in collaboration with a team of developers, created Ethereum as a response to the open-source Bitcoin, which powers online payments. However, Ethereum is a pioneer in the crypto sector because it has introduced smart contracts to the sector, which enables the creation of decentralized applications.
Its cutting-edge architecture enables the creation of independent crypto projects, which powered the development of the Metaverse, non-fungible tokens, GameFi, and decentralized finance.
Crypto tokens based on Ethereum
The crypto tokens developed on the Ethereum network have several utilities. According to reports, more than 3,000 decentralized projects are running on the blockchain, but as not all of them are performing well, we’ll limit to listing those that have stood out lately. Did you know that Ether isn’t the only cryptocurrency based on Ethereum? Here are the others, and how you can trade them through crypto otc platforms for better rates and liquidity.
Uniswap
Uniswap is a crypto project based on Ethereum, with a native token called UNI, which can be used to make transactions within the network. Crypto users can use tokens on Uniswap directly, as blockchain technology requires no intermediary. It has brought to the forefront a new trading model named automated liquidity protocol that has drawn the attention of investors because it allows network participants to trade tokens, supply them to liquidity pools, and list them through the ERC-20 protocol.
Uniswap also serves as a decentralized exchange; hence, it doesn’t control the user’s funds. We should also highlight that it stands out in the sector because it utilizes an automated market-maker system.
Axie Infinity
Axie Infinity is quite popular among gamers because it’s a role-playing game that allows them to add fantastical creatures called Axies to their digital collection and upgrade them. Axies are, at the base, non-fungible tokens. Therefore, they are unique, and the users have total ownership of the digital assets in case they want to monetize their value.
Axie Infinity runs on the Ethereum blockchain and has two native tokens called AXs and SLP that gamers can use to play the game and claim rewards. AXS tokens also allow users to take pay in key governance votes in the network.
MakerDao
MakerDao is part of the stablecoins category, which aims to improve some of the issues commonly associated with digital currencies. Everyone knows that the price of blockchain-based assets fluctuates unpredictably, and some people are afraid to use them as payment solutions. But stablecoins differ because they are more centralized, and their prices don’t fluctuate unexpectedly.
MakerDao also drew attention because it functions like a peer-to-peer organization that enables people to borrow and lend cryptocurrencies. This function is powered by tokens like BTC, YFI, and UNI, which are used as collateral for the debt users want to acquire. The platform will process debts in the DAI stablecoin, so users have to repay their debt using the blockchain’s native token. However, the interest is paid in MKR, which is a utility and governance token used on the MakerDao network.
Chainlink
Chainlink has also captured the crypto audience’s attention because it’s built differently than the others. It’s an Oracle platform that enables smart contracts to connect with data from outside the blockchain. Smart contracts rely on real-time data to complete a transaction when pre-defined conditions are met. While the blockchain was created in 2017, it didn’t gain popularity for a while. Its partnership with Google was the factor that led to a spike in its prevalence among crypto enthusiasts. It also has a native token called Link, which is defined as an ERC-20 coin that runs on the Ethereum network.
Decentraland
Decentraland is popular among Metaverse lovers because it’s a virtual reality real estate platform that allows them to build and engage in interesting experiences online. The network has a native token called MANA that can be used to purchase virtual services and items in the form of LAND NFTs.
People have shown interest in Decentraland since its development because it allows them to monetize their virtual goods.
Aave
Aave is another lending protocol developed on the Ethereum network. However, it differs from MakerDao because it establishes the interest rate according to the utilization rate of the liquidity pool. It means that when a user wants to borrow funds in a cryptocurrency with low liquidity, they will pay a high-interest rate. Specialists believe that the solution is ingenious and unique in the sector.
Another interesting thing about the platform is that it allows people to borrow another type of crypto asset than the one they deposit.
AAVE, the native token of the network, allows holders to vote on the evolution of the protocol.
The Sandbox
Crypto enthusiasts believe that The Sandbox will turn heads in 2024 because its virtual land sales have exploded lately. Some compare the project with a Minecraft, but existing in the Metaverse. However, we must warn that the project doesn’t match all investors’ needs because it addresses a niche audience.
However, it benefits from the support of Adidas and Snoop Dogg, so adding it to an investment portfolio might be worth it. The network allows participants to build games on the virtual land and monetize them by charging fees to the players.
Final thoughts
These are only a couple of the thousands of projects based on Ethereum. While some might be a good fit for any investor’s portfolio, others will only match a limited number of people’s needs.
