Why These Under-The-Radar Cryptocurrencies Are Soaring Today

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What happened

Decentralized cloud data token weave (CRYPTO: AR) and blockchain 3.0 tokens Kusama (CRYPTO: KSM) and Cosmos (CRYPTO: ATOM) all have a fantastic trading day. They rose 13.59%, 29.95% and 13.33% in the past 24 hours, respectively, to $ 63.59, $ 392.36 and $ 23.95, as of 1:17 p.m. EDT. The tokens are coming together as part of a broad investor euphoria within the space of decentralized finance, or DeFi.

So what

Arweave is the world’s leading blockweave network and is supported by Global Coinbase‘s Coinbase Adventures. Traditional blockchain networks, such as Bitcoin, typically have very limited block sizes with averages of 1 megabyte due to cryptography and peer-to-peer validation requirements. So even if the network is upgraded to enable smart contract functionality, it will still be impossible to store assets like non-fungible tokens or NFTs on it.

Image source: Getty Images.

Seeing this problem, Arweave found the solution to weave each block with others on the network. This allows indefinite storage of data on its peer-to-peer network. Additionally, smart contracts from other blockchains can potentially call on assets stored in its database for execution.

Kusama can be thought of as a sandbox network for blockchain developers, similar to incubators in the tech startup space. Developers can seamlessly test new features on Kusama before deploying them to a more popular network such as Peas. It holds auctions on subdivided blockchains called parachains, where decentralized infrastructure can be built. The most important project in its network is Centrifuge. This DeFi protocol allows users to tokenize assets such as NFTs and invoices and use them for borrowing or lending purposes, such as serving as collateral.

As for Cosmos, it is a blockchain-of-blockchains protocol that allows users to take advantage of cross-chain bridges. For example, Bitcoin is known for its slow processing times and high fees, which makes something as simple as using it to buy a cup of coffee impossible. With the recent introduction of Packaged bitcoin in the Cosmos network, this is no longer the case. Wrapping a coin is throwing it on a more efficient network, such as Ethereum‘s (CRYPTO: ETH) ERC-20 or BEP-2 (binance chain) while guaranteeing its value to the underlying asset. Thus, users can efficiently use Bitcoin as a medium of exchange to interact with decentralized applications (dapps).

Now what

In 2015, there were less than 30 dapps on the blockchain. Today that number has grown to 3,500 and covers everything from finance to healthcare to gaming. Around 6,590 smart contracts are executed on these apps every day, representing a staggering annual transaction volume of over $ 366 billion. So keep an eye out for these promising tokens and the latest developments in the industry.

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Zhiyuan Sun owns shares of Ethereum and Polkadot. The Motley Fool owns stocks and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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