Following the completion of the recent Bitcoin (BTC-USD) halving, the crypto narrative became more complex. While the basic equation suggests Bitcoin’s price should rise due to decreased supply and increased demand, the blockchain ecosystem is nuanced. There are clearly other important factors at play that determine price, particularly among larger blockchain projects. Sentiment and positioning are key for this asset class, and that’s not going to change.
Here are three disruptive cryptos I think could ride the tailwinds provided by growth in decentralized finance activity higher over the long term. These are leaders in this respective space and are well-positioned for continued upside, so long as user growth metrics continue higher.
Ethereum (ETH-USD)
Attracting both investors and regulators, Ethereum (ETH-USD) remains a significant player in the crypto space next to Bitcoin. With its spot ETF’s approval still in process, other jurisdictions have already approved its offerings. Meanwhile, a lawsuit by Ethereum developer ConsenSys against the SEC challenges regulatory overreach, sparking community support.
Ethereum gas fees hit a six-month low despite Ether’s weekend rally, suggesting a potential altcoin surge, according to Santiment analysts. On April 27, the average Ethereum transaction fee dropped to $1.12, signaling a cyclical pattern linked to market sentiment.
Ethereum gas fees hit an eight-month high in February amid interest in ERC-404. The analytics platform suggests low fees could spur network activity and an altcoin rally.
Uniswap (UNI-USD)
Facing a potential legal action from the SEC due to its operations in the U.S., Uniswap (UNI-USD) is another controversial crypto that could change the financial market. The SEC’s concerns focus on Uniswap’s UNI tokens, which it views as securities, while Uniswap argues they’re digital file formats, not securities. Despite the Wells notice, Uniswap maintains its tokens are legal and criticized the SEC’s inconsistent enforcement and ambiguity in crypto-asset regulations.
Various experts have observed that Uniswap, operating on Ethereum’s layer 2, now represents about 37% of the total trading volume. Over 24 months, Uniswap’s L2 volumes surged over 650%, from $4 billion in 2022 to $30 billion. Analysts suggest this trend could accelerate with the launch of quality protocols on layer 2 networks like Arbitrum and Optimism.
As Ethereum’s pioneering decentralized exchange, UNI leads on-chain trading with over $2 trillion in volume across 17 chains. DefiLlama data shows $5.5 billion locked in Uniswap. Recently, the SEC issued a Wells Notice to Uniswap, prompting a defensive response.
OriginTrail (TRAC-USD)
OriginTrail (TRAC-USD) operates as a decentralized knowledge center, efficiently connecting data providers, creators, holders and seekers. It aims to offer an open-source, secure platform for information sharing and network monitoring.
Significant firms like Home Depot (NYSE:HD), Walmart (NYSE:WMT) and Target (NYSE:TGT) utilize its supply chain and auditing services, endorsed by the U.S. Department of Homeland Security. OriginTrail entered the market via a token sale on January 17, 2018, drawing immediate investor interest, including backing from Greg Kidd.
In other TRAC-related news, PolkaBotAI, OriginTrail and Polkadot collaborated to decentralize AI education. Led by PolkaBotAI, they aim to launch a decentralized AI education hub on Polkadot, supported by the Polkadot Treasury. The initiative seeks to create a Verifiable Internet for AI, addressing AI’s growth and challenges.
OriginTrail proposed the Verifiable Internet for AI to address AI’s issues, such as biases and intellectual property mishandling, through decentralized knowledge. It has become a leading advocate for combating misinformation in the AI adoption era.
On the date of publication, Chris MacDonald did not hold (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.
