There’s a new coin investors are spotlighting today across social media by the name of Flow (FLOW-USD). The project, rapidly gaining market capitalization, is creating a challenge to Ethereum (ETH-USD) and all of the other layer-1 blockchain networks that blew up in late 2021. Is FLOW fit to compete? Well, with its sustainability promise, non-fungible tokens (NFTs) and hundreds of dapps, many investors are already prepared to say yes.
Flow is a layer-1 blockchain network, meaning it plays host to a wide web of decentralized applications for a variety of uses. It’s one of the newest in the space, launching just over one month ago. Yet it is already setting a fast pace; as of today, the network has over 220 dapps and NFT collections on its platform.
The network is the product of Dapper Labs, an NFT company. Of course, this makes FLOW a network already geared toward investors in the blockchain niche that’s catching on like wildfire. And Dapper Labs isn’t just any NFT company; it’s the organization behind blue chip NFT collections like NBA Topshot, NFL All Day and CryptoKitties. Not to mention, the network also has financial backing from companies like Andreessen Horowitz, Warner Music Group and Animoca Brands.
Flow’s big draw for blockchain users isn’t simply flashy tokens, either; the project is an enticing player because of its unique method of scaling. On the Flow network, every node on the network participates in every single transaction. However, each node is given the same verification role in each transaction, effectively assigning each node a unique role. These nodes then only need to serve one specific, small function in the verification process. This ultimately reduces the energy needed to verify transactions.
FLOW Crypto Stirs Chatter on Social Media as Whales Buy in
The FLOW crypto is making a name for itself generally through its many offerings. Yet today, a lot of the chatter comes as whales begin to buy massive swathes of FLOW. Indeed, Twitter conversation is heating up among investors; these investors are taking notice of many transactions in which buyers are purchasing tens of thousands of dollars worth of FLOW at a time.
The buying trend reinforces the idea that FLOW will be one of the layer-1 leaders soon. Indeed, these big buyers are expecting the crypto to contend with some of the largest cryptos on the market, be it Solana (SOL-USD), Avalanche (AVAX-USD) or ETH. It is certainly making an effort to reach these heights, too; after only a month of existence, the FLOW crypto is already the 51st-largest crypto in the world, boasting a market capitalization of $1.8 billion.
While the FLOW crypto continues to build a name for itself on social media, it looks like the crypto is trending down a bit today. In keeping with the market-wide trend, the coin is losing about 3% on the day. Trading volume is largely the same for the currency.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.