Along with the growth of metaverse, Altcoin (currency other than Bitcoin) should be noted for the hype. The Altcoin, which should be noted the most, is by far Ethereum. Ethereum originated from the fundamental question of why blockchain should be used only for currency transactions. It forms a blockchain ecosystem through the platform and provides a foundation for various services in the form of a decentralized application (DApp).
In addition, there are various altcoin worth the hype, they can be classified into three categories: payment and transaction, platform, and utility. From a long-term perspective, attention should be paid to platform cryptocurrency. There is Ethereum as a representative example, but various Layer 1 platforms are expanding the ecosystem. In addition, layer 2 solutions including polygon are expected to grow in the long term.
Doge Coin is the most notable project among payment and transaction cryptocurrencies. Doge Coin is a meme coin created by developers as a joke, but its value has soared due to the enthusiastic support of Elon Musk. In particular, Elon Musk’s acquisition of Twitter is drawing more attention. Doge Coin can be used for Twitter’s subscription service and Twitter Blue payment in the short term. In the long run, the link between Tesla and SpaceX should be carefully examined.
Utility cryptocurrencies should pay attention to and ‘NFT’. Decentralized financial defy played a large role in the rapid growth of the cryptocurrency market. In addition, NFT’s popularity was so great that it was not an exaggeration to say that 2021 was the year of NFT.
After the Terra and Luna crisis, distrust in DiFi grew, and NFT trading volume plunged 97% compared to the highest point. However, there is a high possibility of growth in the long run. Defies have lower entry barriers and are transparent than traditional finance. The world’s financially marginalized population reaches 2 billion. Defies are likely to be the future and alternative to finance. NFT is a means of proving ownership of digital assets. In order for metaverse to move more realistically, the problem of ownership in the virtual world must be clearly solved. NFT is expanding its utilization to various fields such as entertainment, games, music, fashion, and education.