Right now, the crypto market is not an inviting place for an average retail trader. But you can still make good money if you know how to play your game the right way and this is what this content aims to teach you.
Amidst the recent turbulence in the crypto market, altcoins have experienced significant price drops, influenced by the SEC's lawsuits against Binance and Coinbase.
Some tokens, including Cardano ($ADA), Solana ($SOL), and Polygon ($MATIC), have been named as securities by the SEC.
While Coinbase remains committed to these tokens, Robinhood has decided to delist them and sell them automatically on June 27.
This announcement caused a market panic and a major altcoin crash. However, this situation presents a unique opportunity for investors.
Many altcoins are now available at discounted prices, with the potential for future growth.
Let's explore five crypto narratives and their associated tokens that are poised to emerge stronger from this challenging period.
Disclaimer: I have no affiliation with any tokens listed here and this is not financially advised, I am just sharing my opinion as an expert crypto trader.
Perpetual DEXs
Despite the regulatory challenges faced by centralized exchanges, perpetual decentralized exchanges (DEXs) are emerging as the major beneficiaries.
As traders seek alternative platforms for trading, perpetual DEXs offer a promising solution.
These platforms enable leveraged trading of perpetual crypto contracts directly from your crypto wallet, without the need for KYC procedures.
Utilizing layer 2 technologies, perpetual DEXs minimize fees and execution times, providing a seamless trading experience.
Furthermore, they continue to expand their range of supported crypto assets. With anticipated growth in trading volume, liquidity concerns are gradually diminishing.
With these advantages, perpetual DEXs are poised to thrive in the coming months, offering traders new opportunities and greater flexibility in the decentralized trading landscape.
Top PerpDEX tokens: GMX ($GMX), dYdX ($DYDX), Gains Network ($GNS), ApolloX ($APX), Apex Protocol ($APEX), Kwenta ($KWENTA), Level Finance ($LVL), MUX Protocol ($MCB), Mummy Finance ($MMY), Perpetual Protocol ($PERP), Vela Exchange ($VELA)
Liquid Staking Derivatives (LSDs)
Following the successful implementation of the Ethereum Shanghai Upgrade, native tokens of Liquid Staking Derivatives (LSD) platforms have experienced significant growth and interest.
The Shanghai Upgrade marked a crucial milestone by granting Ethereum network validators access to staked tokens and rewards, a feat previously unattainable.
This achievement has bolstered confidence in the Ethereum blockchain and its capabilities.
LSDs represent a recent innovation in the DeFi space, offering a novel approach to earning interest in digital assets, particularly Ethereum.
These platforms provide an alternative to traditional Ethereum staking methods by reducing staking requirements and ensuring the liquidity of staked tokens.
Given the potential prolongation of the crypto bear market due to ongoing lawsuits, including potential actions by the SEC, investing and holding assets may not yield substantial returns.
As a result, the allure of generating yield becomes even more appealing during these market conditions.
Considering that Ethereum is not currently recognized as a security, LSD platforms have the potential to gain increasing traction in the coming months.
As investors seek alternative avenues to maximize returns, these platforms offer an attractive opportunity to participate in the yield generation ecosystem while leveraging the benefits of Ethereum's established network.
Top LSD tokens: Lido DAO ($LDO), Frax Share ($FXS), Rocket Pool ($RPL), Ankr ($ANKR), ssv.network ($SSV), StakeWise ($SWISE), Stader ($SD), Bifrost ($BNC), StaFi ($FIS)
Metaverse
Play-To-Earn Metaverse projects have emerged as a promising sector that has the potential to drive mainstream adoption of cryptocurrencies, making them an intriguing area to monitor closely.
Currently, the adoption of cryptocurrencies is limited due to various barriers such as limited access to knowledge and regulatory challenges.
However, a significant number of individuals, numbering in the hundreds of millions, regularly engage in video and mobile gaming.
By incorporating play-to-earn features, Web 3 gaming platforms can serve as a gateway for these individuals to enter the world of digital assets.
Unlike traditional Web 2 games, decentralized blockchain-based games offer an open economy where players have a voice in the game's development.
Through decentralized autonomous organizations (DAOs), players can participate in voting on future developments, allowing for a more collaborative and inclusive gaming experience.
Additionally, players have the ability to create, own, and sell non-fungible tokens (NFTs), providing them with unique digital assets with real-world value.
Furthermore, players can earn the game's native token as they actively participate in the gameplay.
By integrating cryptocurrencies and blockchain technology into gaming, play-to-earn Metaverse projects have the potential to revolutionize the gaming industry, attract a wider user base, and drive the mass adoption of digital assets.
Top play-to-earn/metaverse projects: Render ($RNDR), The Sandbox ($SAND), Decentraland ($MANA), Axie infinity ($AXS), Gala ($GALA), SuperVerse ($SUPER), Vulcan Forged ($PYR), Illuvium ($ILV), Ultra ($UOS), Altura ($ALU), Highstreet ($HIGH), Wilder World ($WILD)
Layer 2
Layer 2 solutions are vital for Ethereum's growth. Despite market conditions and legal challenges, Ethereum remains a popular blockchain for various applications.
However, its slow speed and high fees hinder its scalability.
Layer 2 solutions address these issues by providing faster and cheaper transactions while maintaining security.
Many Layer 2 solutions already exist, with more being developed regularly. These solutions aim to improve Ethereum's performance and attract more users.
With Layer 2 solutions, Ethereum can overcome its limitations and become a more efficient and accessible blockchain platform.
Top Layer 2 projects to watch: Polygon ($MATIC), Arbitrum ($ARB), Optimism ($OP), Immutable X ($IMX), Loopring ($LRC), Cartesi ($CTSI), zkSync, Starket, Scroll.
AI
AI has emerged as the dominant technology trend of the year, transcending the crypto realm. ChatGPT, in particular, has gained widespread attention, indicative of the growing popularity of AI-related crypto tokens.
However, the AI narrative is far from reaching its peak and is expected to be a long-lasting trend.
Giants in the tech industry, including Google and Microsoft, are investing significant resources in AI development, demonstrating its potential to revolutionize various aspects of our daily lives.
Numerous AI crypto projects are leveraging this transformative technology to enhance efficiency across diverse industries.
By harnessing AI's capabilities, these projects are driving innovation and improving the quality of their products and services.
Top AI altcoins: Render ($RNDR), The Graph ($GRT), Ocean Protocol ($OCEAN), SingularityNET ($AGIX), Injective ($INJ), Fetch.ai ($FET), iExec RLC ($RLC), Artificial Liquid Intelligence ($ALI), Numeraire ($NUM), Covalent ($CQT), Measurable Data Token ($MDT), DeepBrain Chain ($DBC)
Zooming Out
While there are several other compelling crypto narratives that I will explore in upcoming posts, the ones mentioned here exhibit robust use cases and boast large communities.
Perpetual DEXs are poised to capitalize on regulatory actions targeting centralized exchanges, while LSDs hold the potential to thrive in a bear market by providing yield-generating platforms.
The Metaverse sector presents an exciting opportunity to introduce the masses to the world of crypto, while Layer 2 solutions play a crucial role in scaling the Ethereum network.
Moreover, the field of Artificial Intelligence stands as an independent industry with boundless possibilities for human advancement.
However, it is crucial to remember that we are currently navigating a bear market, and these are tumultuous times for the crypto space.
Therefore, it is essential to adapt your risk management strategies accordingly.
Now it's your turn!
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