tag:www.coingecko.com,2005:/learnCoinGecko Buzz2024-02-01T19:09:26Ztag:www.coingecko.com,2005:Post/12142024-02-01T19:09:26Z2024-02-01T08:30:17ZTop 7 Avalanche (AVAX) Wallets In 2024<h2 dir="ltr">Choosing an Avalanche Wallet</h2>
<p dir="ltr">When choosing an Avalanche wallet, considerations include chains supported, ease of use, security, and device compatibility. Some of the wallets featured also have additional unique features, such as multi-sig capabilities and atomic swaps. Ultimately, the final choice depends on your needs.</p>
<p dir="ltr">The wallets below are ranked first by Avalanche chains supported, followed by other hot wallets listed in order of their website's monthly traffic according to Similarweb data, and finally hardware wallets. </p>
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<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Avalanche has three chains: X-Chain, C-Chain, and P-Chain.</p>
<ul>
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<p dir="ltr" role="presentation">The X-Chain is used for creating and trading digital assets.</p>
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<p dir="ltr" role="presentation">The P-Chain coordinates network validators and tracks active subnets.</p>
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<p dir="ltr" role="presentation">The C-Chain is where smart contracts are created and executed.</p>
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</ul>
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<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">As the C-Chain is where smart contracts are created and executed, your Avalanche wallet should ideally support the C-Chain for broader DeFi interaction.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">For a hot wallet, the Avalanche web wallet by Ava Labs is an all-in-one solution that supports all three chains. Popular wallets like MetaMask and Trust Wallet only support the C-Chain. </p>
</li>
</ul>
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<div dir="ltr"><img alt="Top Avalanche Wallets" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9309/content_Top_Avalanche__Wallets.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/avalanche" target="_blank">Avalanche</a> is a highly efficient, open-source platform known for its unparalleled speed, low transaction costs, and eco-friendly approach. This platform facilitates the creation of custom blockchain networks and <a href="https://www.coingecko.com/en/glossary/decentralized-applications-dapps" target="_blank">decentralized applications (dApps)</a>, distinguishing it from its contemporaries through its unique architecture. As a result, its native token, AVAX, is one of the top 10 cryptocurrencies by market capitalization.</p>
<p dir="ltr">Avalanche allows anyone to spin up their own blockchain networks with custom rules. As a result, it is future-proof both in terms of regulatory compliance and innovation. This makes it very attractive for enterprises and institutional investors — major catalysts for mass adoption.</p>
<p dir="ltr">At its peak, <a href="https://defillama.com/chain/Avalanche" rel="nofollow noopener" target="_blank">over $11 billion</a> worth of assets were locked up in the Avalanche network. The network continues to innovate and forge strong partnerships. At the beginning of 2023, <a href="https://techcrunch.com/2023/01/11/aws-partners-with-avalanche-to-scale-blockchain-solutions-for-enterprises-governments/" rel="nofollow noopener" target="_blank">AWS announced the integration of Avalanche</a>, and later the same year, it was announced that the <a href="https://finance.yahoo.com/news/jpmorgan-apollo-global-unveil-blockchain-051756777.html" rel="nofollow noopener" target="_blank">Monetary Authority of Singapore's Project Guardian</a> would incorporate Avalanche’s technology in some capacity.</p>
<div dir="ltr"><span style="font-size:11px;"><img alt="AVAX peak TVL" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9258/content_Screenshot_2024-01-29_at_12.27.58%E2%80%AFAM.webp" style="width: 1200px; height: 592px;"></span></div>
<div><span style="font-size:11px;">Source: DefiLlama</span></div>
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<h2 dir="ltr">Three Chains of Avalanche</h2>
<div dir="ltr"><img alt="Avalanche Subnets How They Look" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9259/content_Avalanche_Subnets_How_They_Look.webp" style="width: 1200px; height: 675px;"></div>
<div dir="ltr"> </div>
<h3 dir="ltr">Exchange Chain (X-Chain)</h3>
<p dir="ltr">The X-Chain is primarily used for creating and sending and receiving Avalanche's native tokens and other digital assets; however, it is not used for DeFi platforms. It's the network where AVAX tokens are initially issued, and it offers ultra-high TPS and rapid finality, with low fees of 0.001 AVAX. </p>
<p dir="ltr">If your main interest lies in exchanging or holding AVAX and other Avalanche-based assets, a wallet compatible with the X-Chain is essential. Such a wallet should offer easy transaction capabilities and the ability to manage various digital assets effectively.</p>
<h3 dir="ltr">Platform Chain (P-Chain)</h3>
<p dir="ltr">The P-Chain is responsible for coordinating validators (nodes that confirm transactions) and tracking <a href="https://www.coingecko.com/learn/what-are-appchains-application-specific-blockchains">Avalanche's subnets (custom appchains)</a>.</p>
<p dir="ltr">If you're interested in participating in the Avalanche network as a validator or creating your own subnet, a wallet that supports the P-Chain is necessary. This wallet should allow you to stake AVAX (locking up tokens to support network operations), manage validator rewards, and interact with different subnets.</p>
<h3 dir="ltr">Contract Chain (C-Chain)</h3>
<p dir="ltr">The C-Chain is where developers can create <a href="https://www.coingecko.com/learn/crypto-smart-contracts" target="_blank">smart contracts</a>. This chain is compatible with <a href="https://www.coingecko.com/learn/ethereum-virtual-machine-evm" target="_blank">Ethereum's Virtual Machine (EVM)</a>, making it easier for developers familiar with Ethereum to build on Avalanche.</p>
<p dir="ltr">For users interested in engaging with decentralized applications (dApps) and DeFi or deploying smart contracts, a C-Chain compatible wallet is crucial. This type of wallet should facilitate interactions with smart contracts and support various dApps within the Avalanche ecosystem.</p>
<h2 dir="ltr" role="presentation">1. Avalanche Web Wallet: Powerful AVAX Wallet by Ava Labs</h2>
<div dir="ltr"><img alt="Avalanche Web Wallet" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9261/content_Top_AVAX_Wallets.webp" style="width: 1200px; height: 675px;"></div>
<p dir="ltr"><a href="https://wallet.avax.network/" rel="nofollow noopener" target="_blank">The Avalanche Wallet</a> is a web-based platform designed specifically for the Avalanche ecosystem. It allows users to easily manage AVAX and other assets on the Avalanche network.</p>
<p dir="ltr">Developed by Ava Labs, the team behind Avalanche, this wallet emphasizes seamless integration with Avalanche's unique capabilities.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: The Avalanche Wallet features a straightforward and intuitive interface, suitable for both beginners and experienced users. It presents a clean design with easy navigation.</p>
</li>
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<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: Being web-based, it's accessible from any device with a web browser, including iOS, Android, Windows, and Mac.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chain Support</strong>: The wallet supports all three primary Avalanche chains: X-Chain, C-Chain, and P-Chain, enabling a full range of transactions and interactions within the Avalanche ecosystem.</p>
</li>
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<p dir="ltr" role="presentation"><strong>Setup and Usability</strong>: Setting up the Avalanche Wallet is simple. New users can quickly create a wallet, while more advanced features like validation, delegation, staking, and checking message source are also available. The wallet guides users through each step, ensuring a smooth experience.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: The Avalanche Wallet provides robust security measures including secure password encryption. However, being a web wallet, users must be vigilant about their browser security and internet connection.</p>
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<p dir="ltr" role="presentation"><strong>Backup Options</strong>: The wallet is backed up by a 24-word seed phrase. Users can print a paper wallet that contains your keys and codes directly from the interface.</p>
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<p dir="ltr" role="presentation"><strong>Historical Security Incidents</strong>: There have been no major security incidents reported with the Avalanche Wallet, indicating a strong record of security and reliability.</p>
</li>
</ul>
<h2>2. MetaMask: Most Popular EVM Hot Wallet</h2>
<div><img alt="MetaMask Avalanche C-Chain" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9291/content_MetaMask.webp" style="width: 950px; height: 520px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/complete-beginners-guide-to-metamask">MetaMask</a> is a cryptocurrency hot wallet that supports Ethereum, its <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols" target="_blank">Layer 2</a> networks, and standalone EVM blockchains, including the Avalanche C-Chain. Users can connect to dApps on supported chains using their MetaMask wallets, and easily manage their crypto assets using web and mobile devices.</p>
<h3 dir="ltr">Key Features</h3>
<p dir="ltr"><strong>User Interface</strong>: MetaMask is generally user-friendly and ideal for beginners, although users have to add networks (besides Ethereum and Linea) manually. </p>
<p dir="ltr"><strong>Cross-Platform Availability</strong>: MetaMask supports multiple device types, with applications available on iOS and Android. It is also compatible with multiple browsers like Chrome, Firefox Brave, Opera, and Edge.</p>
<p dir="ltr"><strong>Avalanche Chains Support</strong>: MetaMask supports the Avalanche C-Chain.</p>
<p dir="ltr"><strong>Other Features</strong>: MetaMask lets users buy and sell supported cryptocurrencies with fiat, swap cryptocurrencies, and bridge assets across chains. <a href="https://www.coingecko.com/learn/what-are-metamask-snaps-and-how-to-use-them" target="_blank">MetaMask Snaps</a> can also offer additional transaction insights.</p>
<h3 dir="ltr">Security and Backup</h3>
<p dir="ltr"><strong>Security Features</strong>: MetaMask does not control any personal or private data on their servers, where everything is encrypted in the user’s browser and protected with the password. </p>
<p dir="ltr"><strong>Backup Options</strong>: The wallet is secured by a 12-word recovery phrase so that assets can be recovered in the event users forget their password.</p>
<p dir="ltr"><strong>Historical Security Incidents</strong>: There have been no significant security incidents on MetaMask. However, as MetaMask is a <a href="https://www.coingecko.com/learn/crypto-wallet-vs-exchange" target="_blank">non-custodial wallet</a>, users are responsible for their own wallet's security. </p>
<p dir="ltr"><a href="https://www.coingecko.com/learn/how-to-add-avalanche-network-to-metamask" target="_blank">Find out how to connect your MetaMask to the Avalanche C-Chain</a>.</p>
<h2 dir="ltr" role="presentation">3. Trust Wallet: Most Popular Multi-Chain Hot Wallet</h2>
<div dir="ltr"><img alt="Trust Wallet" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9263/content_Trust_Wallet.webp" style="width: 1200px; height: 675px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/complete-guide-to-using-trust-wallet" target="_blank">Trust Wallet</a>, a Binance-acquired product, is a non-custodial hot wallet solution with a focus on multi-asset storage. This wallet has the highest market share after MetaMask and supports over 10 million assets across 70+ blockchains.</p>
<p dir="ltr">With its user-friendly design and robust security features, Trust Wallet is an excellent choice for those looking to store, manage, and use AVAX tokens.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: Trust Wallet has a clean, intuitive interface, making it easy for users of all levels to navigate.</p>
</li>
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<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: Accessible on iOS and Android. It is also compatible with multiple browsers like Chrome, Brave, Opera, and Edge.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chains Support</strong>: Trust Wallet supports the Avalanche C-Chain.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>DApp Browser</strong>: Integrated directly into the wallet, the DApp browser enables users to interact with decentralized applications on Avalanche without leaving the app.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: Trust Wallet is fully self-custodial with zero personal tracking. It also does not require any personal data.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Backup Options</strong>: The wallet is secured by a 12- or 24-word recovery phrase, allowing for easy recovery of assets in case of device loss or damage.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Historical Security Incidents</strong>: While Trust Wallet has experienced <a href="https://cointelegraph.com/news/trust-wallet-to-reimburse-users-after-170-000-security-incident">exploits in the past</a>, the wallet has recovered from the incident and is one of the most popular crypto hot wallets available.</p>
</li>
</ul>
<h2 dir="ltr" role="presentation">4. Atomic Wallet: An HD Wallet for AVAX</h2>
<div dir="ltr"><img alt="Atomic Wallet" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9264/content_Top_AVAX_Wallets_%284%29.webp" style="width: 1200px; height: 675px;"></div>
<p dir="ltr"><a href="https://atomicwallet.io/avalanche-wallet" rel="nofollow noopener" target="_blank">Atomic Wallet</a> is a popular multi-currency wallet known for its security, anonymity, and decentralized nature.</p>
<p dir="ltr">Launched in 2017, it has quickly become a favorite among cryptocurrency enthusiasts for its user-friendly interface and support for a wide range of digital assets.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: Intuitive and easy for beginners, with a clean design. It's designed to be accessible for beginners while still offering the advanced features seasoned users expect.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: Available on Windows, MacOS, Ubuntu, Debian, Fedora, Android, and iOS.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chains Support</strong>: Atomic wallet supports only Avalanche C-chain. Does not support X-chain and P-chain.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Setup Process</strong>: Simple installation, with straightforward setup steps.</p>
</li>
</ul>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Atomic Swap</strong>: One of its standout features is the ability to perform atomic swaps – a feature that allows for direct, peer-to-peer exchange of cryptocurrencies without the need for intermediaries.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Hierarchical Deterministic</strong>: The Atomic Wallet is also an HD (Hierarchical Deterministic) wallet, which means it generates new addresses for every transaction to enhance privacy and security. This feature is significant for users who value financial privacy and security in their cryptocurrency transactions.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: <a href="https://www.coingecko.com/learn/what-are-public-and-private-keys" target="_blank">Private keys</a> stored locally. Once set up, the wallet is secured by a password by default. Biometric locks like facial and fingerprint recognition can also be enabled.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Backup Options: Backup is through a 12-word <a href="https://www.coingecko.com/en/glossary/mnemonic-phrase" target="_blank">mnemonic seed phrase</a>.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Historical Security Incidents: In June 2023, a group of hackers <a href="https://cointelegraph.com/news/north-korean-hackers-swipe-over-100m-from-atomic-wallet-users" rel="nofollow noopener" target="_blank">stole $100 million worth of crypto</a> from about 5,500 Atomic Wallet users, although no new cases have been reported since.</p>
</li>
</ul>
<h2 dir="ltr" role="presentation">5. TotalSig: Multi-Sig Wallet for Avalanche</h2>
<div dir="ltr"><img alt="TotalSig" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9292/content_TotalSig.webp" style="width: 950px; height: 410px;"></div>
<p dir="ltr"><a href="https://www.totalsig.com/wallets/avalanche-multisig-wallet" rel="nofollow noopener" target="_blank">TotalSig</a> was launched in 2023 and offers a specialized Avalanche multisig wallet, focusing on security through <a href="https://www.coingecko.com/learn/mpc-wallet-vs-multi-sig-wallets" rel="nofollow noopener" target="_blank">multi-signature</a> features.</p>
<p dir="ltr">Developed by a team of blockchain experts and security professionals, TotalSig has quickly gained recognition for its robust security features and user-friendly design.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: TotalSig boasts a sleek, intuitive interface, making it easy for both beginners and experienced users to navigate. Its responsive design ensures a smooth experience across devices.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: Available on iOS, Android, Windows, and Mac, TotalSig offers a consistent experience regardless of the platform.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chain Support</strong>: TotalSig supports Avalanche C-chain, allowing users to interact with the AVAX DeFi ecosystem.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Setup Process</strong>: Setting up this wallet is slightly different from regular wallets as it uses multi-sig. It begins with a simple password and a 24-word seed phrase backup. To start using the wallet, you must create a new multi-sig or join one. <a href="https://www.totalsig.com/info/getting-started">You can find the multi-sig guide here.</a></p>
</li>
</ul>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Multi-Sig</strong>: TotalSig's multi-sig functionality is its primary selling point. You can create 1 wallet with a maximum of 2 participants. With a premium account, you can create more wallets and invite up to 8 participants.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Subscription Model</strong>: TotalSig provides a subscription option at $20 per month. This lets you add up to 32 co-signers and manage multiple wallets.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: TotalSig utilizes Multi-Party Computation (MPC) for advanced security.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Backup Options</strong>: Users can back up using a <a href="https://www.coingecko.com/en/glossary/seed" target="_blank">24-word seed phrase</a>. Since it is a multi-sig wallet, the user can set up multiple wallets in case they lose access to some. They can access the funds as long as the minimum threshold is met.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Historical Security Incidents:</strong> There have been no reports of hacks or exploits of TotalSig.</p>
</li>
</ul>
<h2 dir="ltr" role="presentation">6. Tangem: Tap-to-Pay Avalanche Wallet</h2>
<div dir="ltr"><img alt="Tangem" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9266/content_Top_AVAX_Wallets_%283%29.webp" style="width: 1200px; height: 675px;"></div>
<p dir="ltr"><a href="https://tangem.com/en/" rel="nofollow noopener" target="_blank">Tangem</a> is a unique physical hardware wallet in the form of a card, offering a distinctive approach to crypto storage and transactions.</p>
<p dir="ltr">Tangem aims to make cryptocurrencies tangible and accessible, merging the security of <a href="https://www.coingecko.com/learn/hot-wallet-vs-cold-wallet" target="_blank">hardware wallets</a> with the simplicity of a card.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: Tangem Wallet stands out with its physical card interface, offering a simple, tap-to-pay experience. The ease of use is akin to using a regular bank card, making it highly approachable for beginners.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: The Tangem app is available on iOS and Android, facilitating easy management of assets.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chain Support</strong>: Tangem supports Avalanche C-chain so that users can interact with Avalanche-based decentralized applications.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Setup and Ease of Use</strong>: Setting up the Tangem Wallet is straightforward. Users initialize their wallets by tapping the card on their smartphone. The simplicity of its physical card nature removes many complexities typical of crypto wallets.</p>
</li>
</ul>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Physical Card Format</strong>: The Tangem Wallet’s card format is its most distinctive feature, offering a physical and portable means to secure crypto assets.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Tap-to-Pay Experience</strong>: The NFC-enabled card allows for effortless transactions, just by tapping the card on a compatible device.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: Tangem Wallet offers robust security with its chip-based protection, which is tamper-proof and secure against cloning.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Backup Options</strong>: Users can create backup cards for additional security, ensuring asset recovery in case of loss or damage to the primary card.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Historical Security Incidents</strong>: There have been no major security incidents reported with Tangem Wallets, highlighting their reliability and safety.</p>
</li>
</ul>
<h2 dir="ltr" role="presentation">7. Cypherock X1: Eliminating Single Point of Failure for AVAX Holders</h2>
<div dir="ltr"><img alt="Cypherock X1" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9267/content_Top_AVAX_Wallets_%285%29.webp" style="width: 1200px; height: 675px;"></div>
<p dir="ltr"><a href="https://www.cypherock.com/product/cypherock-x1/#wallet" rel="nofollow noopener" target="_blank">Cypherock X1</a> utilizes credit-card-sized cards to split and store your seed phrases. Users can store up to four seed phrases using the X1 Vault. It stands out for its unique approach to key management, eliminating the single point of failure associated with traditional hardware wallets.</p>
<p dir="ltr">The wallet was developed in response to <a href="https://www.youtube.com/watch?v=dT9y-KQbqi4" rel="nofollow noopener" target="_blank">firmware vulnerabilities</a> sometimes found in hardware wallets.</p>
<h3 dir="ltr">Key Features</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>User Interface</strong>: The Cypherock X1 offers a simple and intuitive interface. Its design focuses on ease of use, with no manual seed phrase backup required, making it suitable even for those new to cryptocurrency.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Cross-Platform Availability</strong>: Compatible with various operating systems including iOS, Android, Windows, and Mac, ensuring a wide range of accessibility.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Avalanche Chain Support</strong>: Cypherock X1 supports the Avalanche C-Chain.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Setup Process</strong>: The setup is straightforward, with guided steps. However, its unique security approach may require a brief learning curve for new users.</p>
</li>
</ul>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Seedless</strong>: Cypherock X1 does away with seed phrases. Users can access their funds with any one of the four cards that the wallet comes with.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Trustless Inheritance</strong>: Focusing on longevity, Cypherock evangelizes the trustless inheritance of crypto. Users can ensure their crypto is trustlessly and privately transferred to the right person in the event of death.</p>
</li>
</ul>
<h3 dir="ltr">Security and Backup</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Security Features</strong>: The private keys are fragmented into four and stored on four separate EAL 6+ certified chips in a credit card-like form factor.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Backup Options</strong>: Users can purchase more cards and pair them up with existing cards. As long as the user has access to at least 1 of the cards, the assets can be recovered.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Historical Security Incidents</strong>: Cypherock X1 has not suffered any hacks or exploits.</p>
</li>
</ul>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">The choice of AVAX wallet can greatly impact your experience with the Avalanche network, especially because of the presence of three distinct chains serving different purposes.</p>
<p dir="ltr">If you want an all-in-one solution, then the Avalanche web wallet by Ava Labs is an easy pick. From creating your Avalanche-based NFTs to swapping across chains, the wallet has it all.</p>
<p dir="ltr">If you are looking for a mobile AVAX wallet app that is also used by many, then MetaMask or Trust Wallet are choices worth considering. For a blend of security and convenience, Tangem or Cypherock X1 hardware wallets are good picks.</p>
<p dir="ltr">Did you find this article helpful? <a href="https://www.coingecko.com/learn/top-solana-wallets" target="_blank">Read our article on the best Solana wallets here.</a></p>
<h3 dir="ltr">Methodology</h3>
<p dir="ltr">The methodology adopted in this article to evaluate the best wallets for AVAX tokens emphasizes key aspects such as user interface, security features, and chain support. Through this method, we aspired to provide a holistic and unbiased evaluation of each of the Avalanche wallets.</p>
<p dir="ltr">The article primarily focuses on wallets compatible with Avalanche C-Chain as the C-Chain represents key functionalities within the Avalanche ecosystem that are most relevant to a broad spectrum of users.</p>
<p dir="ltr">With a thorough and balanced assessment of each wallet, we provided the reader with a headstart in their research of choosing a wallet for their AVAX tokens.</p>
Sankrit Khttps://www.coingecko.com/learn/top-avalanche-avax-walletsChoosing an Avalanche Wallet
When choosing an Avalanche wallet, considerations include chains supported, ease of use, security, and device compatibility. Some of the wallets featured also have a...tag:www.coingecko.com,2005:Post/12192024-02-01T08:14:53Z2024-02-02T06:46:24ZGuide to Improving Aevo Airdrop Eligibility<h2 dir="ltr">Qualifying for the AEVO Airdrop</h2>
<p dir="ltr">At time of writing, based on information from the protocol, the main criteria for the AEVO Farming Program will be focused on volumes, fees, and loyalty (recurring usage) on Aevo. After the Farming Program, Aevo users can claim the amount of AEVO tokens earned during this period. </p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Aevo, previously known as Ribbon Finance, is a decentralized derivatives platform offering exchange-traded options, perpetual contracts, and structured products.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">1,000,000,000 AEVO tokens will be minted to mirror the total supply of RBN tokens and up to 16% of AEVO in the DAO Treasury is allocated for incentives which will include an airdrop.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">All Aevo users who deposit funds and provide volume will be eligible for the AEVO airdrop. The Aevo team has also announced a Farming program to improve airdrop allocation with more details to be provided soon. </p>
</li>
</ul>
<hr>
<p><img alt="Aevo Airdrop" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9312/content_Aevo_Airdrop.webp" style="width: 950px; height: 475px;"></p>
<p><a href="https://www.coingecko.com/en/exchanges/aevo" target="_blank">Aevo</a> is a high-performance decentralized derivatives exchange platform focusing on options and perpetual contracts. It runs on a custom EVM roll-up that operates an off-chain order book with on-chain settlements. Aevo is backed by several venture capital firms including Paradigm, DragonFly Capital, Scalar Capital, Nascent, Coinbase Ventures, and Ethereal Ventures. </p>
<p>The platform was recently known as Ribbon Finance, a DeFi protocol offering structured products with double-digit yields. Ribbon Finance conducted several airdrops to incentivize participation as well as reward early adopters. In its <a href="https://www.coingecko.com/learn/governance-tokens" target="_blank">governance token</a> airdrop, a total of 30,000,000 <a href="https://www.coingecko.com/en/coins/ribbon-finance" target="_blank">RBN</a> was allocated to past and existing users of Ribbon products, active Ribbon Discord members, and users of existing options protocols on Ethereum. This airdrop was worth a total of <a href="https://www.coingecko.com/research/publications/biggest-crypto-airdrops" target="_blank">$132.4 million</a> at its peak.</p>
<p>However, the team decided to pivot to Aevo after struggling to scale. A proposal that was put forward to merge Ribbon Finance and Aevo under the Aevo brand was met with community support and a near-unanimous vote. The transition includes a restructuring in governance and the introduction of the new AEVO tokens.</p>
<p>The AEVO <a href="https://docs.aevo.xyz/aevo-governance/tokenomics" rel="nofollow noopener" target="_blank">tokenomics documentation</a> highlights that the DAO Treasury holds the largest number of tokens and presents a plan for handling the 45% of RBN owned by the DAO upon the release of the AEVO token. </p>
<p>The proposed distribution scheme outlines that up to 16% of AEVO within the Treasury will be allocated for incentives, including an airdrop, which will be managed by the Growth and Marketing Committee. Given this insight, now is a favorable time to explore Aevo’s exchange!</p>
<p><strong>Do note that at the time of writing, <a href="https://aevo.mirror.xyz/Rx6gZ6o7oJukpTIl3UrJTrfKS2zwcpCwVlyHgfmdfBk#:~:text=To%20be%20clear%2C%20all%20users%20of%20Aevo%20up%20to%20this%20point%20who%20have%20done%20volume%20will%20be%20eligible%20for%20%24AEVO.%20This%20program%20is%20a%20chance%20for%20them%20to%20amplify%20their%20rewards." rel="nofollow noopener" target="_blank">Aevo has only confirmed</a> that users who provide volume will be eligible for the airdrop. However, more qualifying criteria may be announced by the Aevo team in the future. Aside from providing volume, referring other users and joining the Aevo Discord channel does not guarantee the result of boosting your airdrop allocation.</strong></p>
<h2 dir="ltr">Step 1: Launch Aevo Exchange</h2>
<p dir="ltr">You can head over to <a href="https://www.aevo.xyz/" rel="nofollow noopener" target="_blank">https://www.aevo.xyz/</a> and click <strong>Launch Exchange</strong> in the top right corner or go directly to <a href="https://app.aevo.xyz/perpetual/eth" rel="nofollow noopener" target="_blank">https://app.aevo.xyz/perpetual/eth</a> </p>
<p dir="ltr"><img alt="Launch Aevo Exchange" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9293/content_1._Launch_exchange.webp" style="width: 950px; height: 496px;"></p>
<h2 dir="ltr">Step 2: Connect Wallet</h2>
<p dir="ltr">2a. Connect your wallet to Aevo</p>
<p dir="ltr"><img alt="Connect your wallet to Aevo" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9295/content_2._connect_your_wallet.webp" style="width: 950px; height: 545px;"></p>
<p dir="ltr">2b. In this example, we are using <a href="https://www.coingecko.com/learn/complete-beginners-guide-to-metamask" target="_blank">MetaMask</a> but you can also choose from Wallet Connect, Coinbase Wallet, Brave, or import manually.</p>
<p dir="ltr"><img alt="Select wallet to connect to Aevo" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9296/content_3._Choose_wallet.webp" style="width: 950px; height: 642px;"></p>
<p dir="ltr">2c. <a href="https://www.coingecko.com/learn/sign-message-ethereum" target="_blank">Sign the message</a> to enable trading.</p>
<p dir="ltr"><img alt="Sign the message to start trading" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9297/content_4._sign_to_enable_trading.webp" style="width: 950px; height: 727px;"></p>
<h2 dir="ltr">Step 3: Deposit Funds</h2>
<p dir="ltr">From your wallet, select the token you wish to deposit. This example uses <a href="https://www.coingecko.com/learn/arbitrum-ecosystem-bridge-airdrop" target="_blank">Arbitrum</a> but you can also deposit from Ethereum and <a href="https://www.coingecko.com/learn/what-is-optimism-op" target="_blank">Optimism</a>. Using a <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols" target="_blank">Layer 2</a>, such as Arbitrum or Optimism, will reduce the cost of gas fees.</p>
<p dir="ltr">Before depositing, make sure that you've selected <strong>Yes</strong> for the option to <strong>Convert to aeUSD, earn 4.75% APY</strong>.</p>
<p dir="ltr"><img alt="Convert to aeUSD to earn 4.75% APY" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9298/content_5.convert.webp" style="width: 950px; height: 799px;"></p>
<p dir="ltr">If you miss this step, head to your <strong>Portfolio</strong> in the top left corner. </p>
<p>From here you can select <strong>Earn</strong> and your funds will be converted.</p>
<p dir="ltr"><img alt="aeUSD Earn Program" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9299/content_6.earn.webp" style="width: 950px; height: 332px;"></p>
<p dir="ltr">This step is recommended because aeUSD is the stablecoin of Aevo and there is a high chance it will be factored in as part of the criteria. By converting to aeUSD, you are also automatically enrolled in the Earn program.</p>
<h2 dir="ltr">Step 4: Trade</h2>
<p dir="ltr">On the trading page, provide volume by trading. You can change your margin and <a href="https://www.coingecko.com/learn/leverage-crypto-trading-how-does-it-work" target="_blank">leverage</a> settings before opening a position. </p>
<p dir="ltr">As an exchange, the Aevo team wants users to create as much volume as they can by trading. However, there is no specific frequency or amount that is identified as the minimum amount to qualify for the airdrop.</p>
<p dir="ltr"><img alt="start trading on Aevo" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9300/content_7.trade.webp" style="width: 950px; height: 1484px;"></p>
<p dir="ltr">You have the option to set your default position leverage at 2x, 5x, 10x, and 20x. The more leverage you have, the bigger you can size your position and the more volume you can provide. However, the higher the leverage you use in a trade, the risk of <a href="https://www.coingecko.com/learn/defi-liquidation-crypto" target="_blank">liquidation</a> also increases, especially if the trade turns unfavorably.</p>
<p dir="ltr"><img alt="Set your leverage" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9301/content_8.leveraging.webp" style="width: 950px; height: 635px;"></p>
<h2 dir="ltr">Step 5: Perform Additional Transactions</h2>
<p dir="ltr">Under your portfolio, you can also choose to deposit funds in different assets to be used as <a href="https://www.coingecko.com/learn/crypto-collateral-defi" target="_blank">collateral</a>. Generally, the more trades you perform and the higher the volume you generate, the higher the allocation for the airdrop. </p>
<p dir="ltr"><img alt="Additional Transactions on Aevo" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9302/content_Additional_TXs.webp" style="width: 950px; height: 334px;"></p>
<h2 dir="ltr">Step 6: Refer Others</h2>
<p dir="ltr">You can head to the <strong>Referrals</strong> program in the top left menu bar. The Referral program has not been confirmed as a qualifying criterion for the airdrop but it is possible to be included in the future.</p>
<p dir="ltr">When new users sign up using your referral link, you receive 10% of their trading fees and they will receive a 10% discount on trading fees for 6 months. Additionally, for any account that signs up with your referral link and deposits at least $100, you will receive a $25 trading credit.</p>
<p dir="ltr"><img alt="Aevo Referral program" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9303/content_referrals_program.webp" style="width: 950px; height: 455px;"></p>
<p dir="ltr">On this page, you can copy your referral link and view more information on Aevo’s referral program, the number of referred traders, the volume generated by referees, unclaimed rewards, and total rewards earned. </p>
<p dir="ltr"><img alt="Aevo Referrals dashboard" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9304/content_referral_link.webp" style="width: 950px; height: 516px;"></p>
<h2 dir="ltr">Step 7: Join Aevo Discord</h2>
<p dir="ltr">Join the Aevo Discord channel at <a href="https://discord.com/invite/aevo" rel="nofollow noopener" target="_blank">https://discord.com/invite/aevo</a>. Similarly to the Referral program, joining the Discord channel has not been announced as a qualifying criterion for the airdrop but may be included in the future. </p>
<p dir="ltr"><img alt="Join Aevo Discord" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9305/content_12._Join_Discord.webp" style="width: 950px; height: 494px;"></p>
<h2 dir="ltr">Additional Features on Aevo</h2>
<p dir="ltr">Under your portfolio, you can also see all your positions, open orders, order history, trade history, funding history, as well as transfers and rewards. </p>
<p dir="ltr"><img alt="Aevo Positions" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9306/content_9._positions.webp" style="width: 950px; height: 494px;"></p>
<p dir="ltr">You can choose different markets to look at by clicking on the dropdown box under <strong>Trading</strong>. </p>
<p dir="ltr"><img alt="How to view markets on Aevo" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9307/content_10._all_markets_here.webp" style="width: 950px; height: 455px;"></p>
<p dir="ltr">Here you can see <strong>All Markets</strong>, <strong>Pre-Launch Tokens</strong>, <strong>Perpetual Futures</strong>, and <strong>Options</strong>. If you plan to trade on the Pre-Launch Tokens market, take note that it tends to be more volatile.</p>
<p dir="ltr"><img alt="Aevo Markets" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9308/content_11._view_all_markets.webp" style="width: 950px; height: 523px;"></p>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">Aevo is positioned to become one of the leading platforms for blockchain derivatives and decentralized options protocols in many aspects. The platform is designed to provide users with an experience that is closer to a centralized derivatives platform to make the transition more accessible. By running on a custom <a href="https://www.coingecko.com/learn/ethereum-virtual-machine-evm" target="_blank">EVM</a> roll-up that rolls up to Ethereum, As it operates an off-chain order book with on-chain settlements, it can provide efficient and secure transactions. </p>
<p dir="ltr">With the introduction of Aevo USD (aeUSD), users can also enjoy up to 4.75% APY on stablecoins alongside advanced trading frameworks and vaults. Participating in the Earn program and creating volume by trading is highly recommended to increase your airdrop allocation. </p>
<p dir="ltr">While there is already a strong community from Ribbon Finance, Aevo is planning to grow and foster community engagement through the introduction of the AEVO token with an airdrop. As the AEVO token launch approaches, many users will be watching to see how it will perform. A successful airdrop is key to strengthening its position in the decentralized derivatives exchange market. It is also a chance for users to join a governance token initiative and participate in the project’s progress.</p>
<p>As mentioned above<strong>, volume is the only confirmed criterion by the Aevo team to qualify for an airdrop</strong>. There is no guarantee that participating in the Referral program or joining the Aevo Discord channel will result in a higher allocation for the airdrop. </p>
Stephanie Gohhttps://www.coingecko.com/learn/aevo-airdropQualifying for the AEVO Airdrop
At time of writing, based on information from the protocol, the main criteria for the AEVO Farming Program will be focused on volumes, fees, and loyalty (recurrin...tag:www.coingecko.com,2005:Post/12162024-01-31T04:59:24Z2024-01-31T06:48:04ZTonkeeper: A Non-Custodial Wallet and Super-App<h2 dir="ltr">What Is Tonkeeper?</h2>
<p dir="ltr">Tonkeeper is the leading wallet on the TON blockchain that offers staking services and private dApp browsing, while enabling users to purchase eSIM and gift cards with crypto.</p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">TON offers users high scalability and fast speed, while maintaining low fees.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Tonkeeper is a non-custodial wallet on TON that enables users to live on crypto. It also offers features like staking and private dApp browsing.</p>
</li>
</ul>
<hr>
<p dir="ltr"><img alt="What is Tonkeeper" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9281/content_What_is_Tonkeeper.webp" style="width: 950px; height: 475px;"></p>
<p dir="ltr"><em>This article was written together with the Ton Apps team.</em></p>
<p dir="ltr">Tonkeeper is the top wallet on TON App, a directory of all apps available in the TON ecosystem. What makes TON and Tonkeeper stand out is how they are making Web3 a practical option for the masses, through the blockchain’s affiliation with Telegram, the popular social messaging application. </p>
<p dir="ltr">In this article, we’ll look at how <a href="https://tonkeeper.page.link/46xQ" rel="nofollow noopener" target="_blank">Tonkeeper</a> and TON are “putting crypto in every pocket”.</p>
<h2 dir="ltr">Introduction to TON</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-ton-toncoin-crypto" target="_blank">TON</a>, short for “The Open Network”, is an open-source blockchain network. Originally initiated by the founders of the Telegram messaging app, it has since evolved into an independent project managed by the TON Foundation.</p>
<p dir="ltr">At the heart of TON's design is its exceptional scalability and speed.</p>
<p dir="ltr">This is achieved by implementing a Proof of Stake consensus mechanism (for energy-efficient transaction validation) and dynamic sharding (a process that partitions the network into smaller, more manageable pieces to optimize processing and throughput and merge them as needed).</p>
<p dir="ltr">A unique aspect of TON is its synergy with Telegram, a messaging app with over 800 million users. By integrating directly into Telegram, TON effectively made cryptocurrency transactions as simple as sending a message.</p>
<p dir="ltr">The TON Foundation expects to onboard 500 million users onto TON by 2028 — 30% of Telegram’s estimated user base.</p>
<p dir="ltr">Now, let’s look at how Tonkeeper makes it easy for users to live on crypto, wherever they are.</p>
<h2 dir="ltr">Tonkeeper: Freedom of Living on Crypto</h2>
<p dir="ltr">Tonkeeper works on many platforms: iOS, Android, web, desktop, and even as a Chrome or Firefox extension. The team recommends the mobile wallet – all users have to do is to their app store, and <a href="https://tonkeeper.page.link/46xQ" rel="nofollow noopener" target="_blank">download Tonkeeper</a>. </p>
<p dir="ltr">For a more detailed guide on getting started with Tonkeeper, <a href="https://www.coingecko.com/learn/how-to-set-up-ton-wallet-crypto#how-to-set-up-your-tonkeeper-wallet" target="_blank">check out this article</a>.</p>
<h3 dir="ltr">Non-Custodial</h3>
<p dir="ltr">Tonkeeper is a non-custodial wallet, so users hold full control over the funds stored in their Tonkeeper wallet. However, as it is a non-custodial wallet, users are responsible for protecting their recovery phrase, as it is the one and only key to their wallet. Always back up your 24-word recovery phrase in a safe location, preferably offline and on crypto steel, and never share it with strangers. Likewise, never enter it on any site until you’ve verified the authenticity of the site – most sites do not request for your recovery phrase and/or <a href="https://www.coingecko.com/learn/what-are-public-and-private-keys" target="_blank">private keys</a>. </p>
<h3 dir="ltr">Living on Crypto</h3>
<p dir="ltr">Many people earn their living getting paid in crypto, before exchanging it for the local currency. With Tonkeeper, users who are getting paid in crypto no longer have to go through the hassle of exchanging money. Start by buying your eSIM card with TonMobile, then head to Tokenstore to get a gift card for delivery and taxi service, then book tickets and hotels. </p>
<p dir="ltr">Paying in crypto is now as easy as cash: no long forms to fill out, no personal information disclosures and no risks of identity theft or fraud. Your wallet keeps all your keys secure, your money is under your personal control.</p>
<h3 dir="ltr">Low Fees</h3>
<p dir="ltr">Before TON, blockchains such as Bitcoin or Ethereum did not scale, leading to increased fees during increase in demand. This means that when more people are rushing to participate in the latest hype, fees drastically increase and you have to grossly overpay for a regular transaction. </p>
<p dir="ltr">Now, with TON and its improved scalability, fees are fixed, and when the load increases, the network distributes load and attracts more validation resources. And the fees are reasonably low, so you can pay using TON many times a day and not even think about it, just like with a banking card or cash.</p>
<h3 dir="ltr">Passive Earning With Staking</h3>
<p dir="ltr">Tonkeeper supports several staking pools that fund validation resources in the TON network. Those low fees we mentioned above? These are profits for validators, and the more people are using TON for daily transactions, the more fees they collectively pay and make validators earn. </p>
<p dir="ltr">You too can earn a portion of these fees by offering your TONs as a security stake that increases the validator’s weight. By joining a staking pool, you reduce your exposure to risks that may occur when you stake on your own, although this comes at the cost of relinquishing control of your assets to a third party. </p>
<p dir="ltr">There are also <a href="https://www.coingecko.com/learn/what-is-liquid-staking-liquid-staked-derivatives-you-need-to-know" target="_blank">liquid staking</a> pools available on TON, such as Tonstakers, where your share of the pool is a token that can be instantly swapped for TON or any other asset.</p>
<h3 dir="ltr">Private dApp Browsing</h3>
<p dir="ltr">Tonkeeper has a built-in browser that lets you connect to any resource securely and easily make payments and other transactions with full control over your funds and your private data. The browser does not share your history and is a convenient way to interact with the whole TON ecosystem right from your mobile wallet. You can also connect to a dApp in any browser on any device thanks to the secure and convenient TON Connect standard, pioneered in 2022 by the Tonkeeper team.</p>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">Tonkeeper is a super-app that makes it easy for users to navigate the TON blockchain, offering a full suite of services from real world applications to staking. </p>
<p dir="ltr">The team behind Tonkeeper is also building an entire crypto-economy using TON as its foundation. Users on TON can use <a href="https://tonviewer.com/">Tonviewer</a> to monitor payments and explore the network, while many TON developers are building their apps using <a href="https://tonapi.io/">TonAPI</a>, the reliable and full-featured programming interface into the blockchain data. Finally, <a href="https://tonconsole.com/">Ton Console</a> is the place where it all comes together, facilitating business activities in TON: developer tools, analytics, and consumer marketing.</p>
<p dir="ltr">This article is not meant to be taken as financial advice. Always do your own research around wallets and protocols before depositing your funds. </p>
CoinGeckohttps://www.coingecko.com/learn/tonkeeper-wallet-appWhat Is Tonkeeper?
Tonkeeper is the leading wallet on the TON blockchain that offers staking services and private dApp browsing, while enabling users to purchase eSIM and gift cards with crypto....tag:www.coingecko.com,2005:Post/12152024-01-30T08:06:12Z2024-01-30T07:03:58ZWhat Is Jupiter and How It’s Driving DeFi Adoption on Solana<p><meta charset="utf-8"></p>
<h3 dir="ltr">What Is Jupiter? </h3>
<p dir="ltr">Jupiter is a DEX aggregator on Solana that is designed to help users discover the "best price" in one place. It also has advanced features to improve accessibility, such as limit orders and dollar-cost averaging.</p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Jupiter is a DEX aggregator on the Solana blockchain. It offers users several options for their financial transactions by connecting them with multiple decentralized exchanges on the network.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Jupiter offers additional services and features including a limit order swap feature that allows users to set preferred conditions for their transactions, along with dollar-cost averaging (DCA), enabling users can to set up periodic purchases over a time period.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Jupiter's native token is JUP, which will be launched in end January 2024. The token will be allocated evenly between the team and community.</p>
</li>
</ul>
<hr>
<p dir="ltr"><img alt="What is Jupiter crypto" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9280/content_What_is_Jupiter_crypto.webp" style="width: 950px; height: 475px;"></p>
<p dir="ltr">Solana hosts several decentralized exchanges that offer direct asset swaps using liquidity pools and the automated market maker (AMM). However, liquidity conditions across the different asset pairs on these exchanges differ. As a result, prices of the same asset could differ significantly, and the liquidity conditions could also lead to higher slippage on some of these exchanges. Jupiter, a DEX aggregator on Solana, is designed to help users discover the best rates in one place, while offering users features like limit orders and dollar-cost averaging (DCA).</p>
<p dir="ltr">Jupiter was launched in 2021 and is dedicated to creating a platform for DeFi enthusiasts on the Solana network. It claims that this platform is cost-efficient, encourages the best use of protocols on the network, and promotes the adoption of the Solana blockchain for decentralized finance. </p>
<h2 dir="ltr">Understanding Jupiter: A DEX Aggregator on Solana</h2>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Jupiter is a full stack ecosystem play to make the decentralized experience better than the centralized one.<br>
<br>
- Full array of world class trading products<br>
- Full support for good new projects and tokens<br>
- Full integration of all liquidity avaiable on Solana<br>
<br>
I am not being… <a href="https://t.co/YCnqrrGpdt">https://t.co/YCnqrrGpdt</a></p>
— meow 🥧 (@weremeow) <a href="https://twitter.com/weremeow/status/1737267656640893252?ref_src=twsrc%5Etfw">December 20, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">According to data from the network’s explorer, <a href="https://analytics.solscan.io/overview" rel="nofollow noopener" target="_blank">Jupiter is one of Solana blockchain’s most used applications</a>. Jupiter claims to process an average of $350 million worth of crypto assets trades daily from over 100,000 unique wallets.</p>
<p dir="ltr">Jupiter is a DEX aggregator; it connects to several decentralized exchanges to provide users with an interaction pathway to these exchanges from one interface. Through this connection, Jupiter is able to obtain core data like liquidity conditions across asset pairs, prices of assets and fees charged by the liquidity providers, and more. Using this data, Jupiter then selects a route for the user's transaction. </p>
<p dir="ltr">Depending on presiding conditions, the transaction could be routed through multiple <a href="https://www.coingecko.com/learn/liquidity-pools-crypto-defi" target="_blank">liquidity pools</a>. Each iteration is known as a Hop, and a single swap transaction could go through 3 Hops. Jupiter claims that this system enables traders to easily use the most effective and resource-efficient facility for each transaction. Jupiter claims that its aggregator connects to over 20 DEXs and <a href="https://www.coingecko.com/learn/what-is-an-automated-market-maker-amm" target="_blank">AMMs</a> on the Solana network.</p>
<p dir="ltr">However, Jupiter’s utility isn’t limited to direct asset swaps through multiple exchanges. The platform features a handful of other advanced utilities to improve the user experience.</p>
<h2 dir="ltr">Key Features of Jupiter</h2>
<p dir="ltr">Now, let’s take a look at some of these advanced utilities and what they offer Jupiter users.</p>
<h3 dir="ltr">Limit Orders</h3>
<div dir="ltr"><img alt="Jupiter Limit Orders" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9269/content_jup_limit_order.webp" style="width: 950px; height: 466px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-are-centralized-crypto-exchanges-cex" target="_blank">Centralized exchanges</a> are known to offer limit orders. <a href="https://www.coingecko.com/learn/take-profit-and-stop-loss-levels" target="_blank">Limit orders</a> enable traders to set up a trade that only executes when the stated conditions are met. This is easier for such platforms since they run an order book system, which uses a record of buy and sell requests for an <a href="https://www.coingecko.com/learn/what-are-trading-pairs-cryptocurrency" target="_blank">asset pair</a>. For decentralized exchanges, this is a bit more complicated due to the nature of the AMM and liquidity pools. </p>
<p dir="ltr">However, Jupiter offers limit orders. On Jupiter, when a user places a limit order, the protocol holds the order including details of set parameters (selling/buying price and quantity) in the limit order protocol. The protocol then obtains prices from supported decentralized exchanges and monitors changes in these prices. When the market price reaches the point set by the trader, it moves to execute the trade. In case the on-chain <a href="https://www.coingecko.com/learn/liquidity-crypto" target="_blank">liquidity</a> is insufficient for the order size, it executes the trades in smaller portions until the order is completed.</p>
<p dir="ltr">Jupiter claims that its decentralized limit order feature works with the same efficiency as centralized limit orders. The only difference is the absence of market makers, an order book, and a centralized control system.</p>
<h3 dir="ltr">Dollar-Cost Averaging</h3>
<div dir="ltr"><img alt="Dollar Cost Averaging DCA on Jupiter" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9270/content_jup_dca.webp" style="width: 950px; height: 525px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-dollar-cost-averaging-dca-in-crypto" target="_blank">Dollar-Cost Averaging (DCA)</a> is a popular approach for <a href="https://www.coingecko.com/learn/what-is-spot-trading" target="_blank">spot</a> purchase of assets. Here, traders split their transactions to sell or purchase an asset over time at different periods. The idea is to increase the trader’s chances of capturing different peak points (for sales) and lows (for purchase) instead of trading all at once and a single price point. </p>
<p dir="ltr">Using Jupiter's DCA feature, traders commit their capital to the trade and specify the different price points (or range) they wish to make a purchase and the amount for each of these, along with the time interval for this trade.</p>
<p dir="ltr">For instance, a trader might decide to purchase $1,000 worth of Solana (SOL) over ten days (note that the interval is flexible and could be set to hours and minutes) and wish to commit $100 every day at certain price levels. The protocol moves $1,000 to the DCA program, which is held in the trader’s vault. When each trade is executed, the asset is transferred to the trader’s wallet. For assets other than SOL, the trader must create an Associated Token Account (ATA) to enable the automatic transfer of purchased tokens to their wallet.</p>
<h3 dir="ltr">Bridge</h3>
<div dir="ltr"><img alt="Jupiter Bridge" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9271/content_bridge.webp" style="width: 950px; height: 549px;"></div>
<p dir="ltr">Jupiter is a bridge aggregator as well. In a fashion similar to its DEX aggregator, it collates data from supported <a href="https://www.coingecko.com/learn/crypto-bridges-blockchain-interoperability" target="_blank">bridges</a> and presents users with available routes for their bridging transaction, the details of these routes, and a suggested route according to presiding conditions. After choosing their route, users are redirected to their preferred bridge to complete their transactions. Bridging facilities supported by Jupiter include Mayan Finance and Debridge.</p>
<p dir="ltr">Jupiter also supports Wormhole for asset bridging. Wormhole is an inter-network messaging protocol that enables advanced communication between blockchain networks. At the time of writing, Jupiter’s bridge powered by Wormhole supports the bridging of assets between the Ethereum and Solana blockchains.</p>
<h3 dir="ltr">Perpetuals</h3>
<div dir="ltr"><img alt="Jupiter Perpetuals" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9272/content_jup_perps.webp" style="width: 950px; height: 377px;"></div>
<p dir="ltr">Perpetual traders bet on the future price of an asset. Jupiter features a <a href="https://www.coingecko.com/learn/decentralized-derivatives-perpetual-future-dexs" target="_blank">decentralized perpetuals</a> trading platform where users can take long or short positions with up to 100x <a href="https://www.coingecko.com/learn/leverage-crypto-trading-how-does-it-work" target="_blank">leverage</a>. Users can participate as traders or liquidity providers. Liquidity providers on the derivative trading platform lock up their assets in the perpetuals vault and earn as traders use these funds for their trades. The perpetual vault currently supports five assets; WBTC, USDT, USDC, SOL, and ETH.</p>
<p dir="ltr">Traders commit <a href="https://www.coingecko.com/learn/crypto-collateral-defi" target="_blank">collateral</a> and obtain funds from the vault to the tune of their collateral and the chosen multiplier. For instance, if a trader uses the 5X leverage on $20 worth of collateral, the capital for the trade becomes $100 (20 * 5). The perpetual trading platform works just like other centralized derivatives trading platforms. However, the funds for the leverage are contributed by the liquidity providers. According to Jupiter, the perpetuals trading facility ensures zero price impact, zero slippage, and deep liquidity by utilizing LP pool liquidity and <a href="https://www.coingecko.com/learn/crypto-blockchain-oracle" target="_blank">oracles</a>. It uses Pyth network’s oracle for its price feed.</p>
<h2 dir="ltr">Jupiter LFG: A Launchpad for Solana Projects</h2>
<p dir="ltr">On January 23, 2024, the pseudonym behind the development of Jupiter <a href="https://twitter.com/weremeow/status/1749577177333645770">announced</a> the launch of LFG, a launchpad for Solana projects via a post on X. </p>
<p dir="ltr">According to the announcement post, LFG will serve as a platform that guides new projects to the market. They claim that the LFG launchpad will be solely backed by the community and will not have any incentive provisions or price discovery system. They claim that the Jupiter DAO will oversee the core aspects of the launchpad, including the approval of projects to launch using the facility via a community vote. </p>
<p dir="ltr">Approved projects will benefit from the technological assistance of the Jupiter platform including a customized launchpool, composable liquidity pool and integration with a full network of bots that the project can use. With the launchpad, Jupiter hopes to guide new projects to success and protects their buyers from hype, fomo and <a href="https://www.coingecko.com/learn/what-is-a-rug-pull" target="_blank">rugs</a>.</p>
<h2 dir="ltr">How to Swap With Jupiter.</h2>
<p dir="ltr">To use Jupiter, visit the official website.</p>
<p dir="ltr">Click <strong>Connect Wallet</strong> from the landing page to connect your wallet to the platform.</p>
<p dir="ltr">You can perform a <strong>Direct Swap</strong>, set <strong>Limit Orders</strong>, or use the <strong>DCA</strong> feature for your swaps on Jupiter.</p>
<h3 dir="ltr">Direct Swaps on Jupiter</h3>
<p dir="ltr">To perform a <strong>Direct Swap</strong>, navigate to the Swap section</p>
<ol>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Select the assets wish you to swap.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Enter the amount you wish to swap.</p>
</li>
</ol>
<div dir="ltr"><img alt="Direct swap on Jupiter" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9273/content_swap_jup.webp" style="width: 950px; height: 511px;"></div>
<ol start="3">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Click <strong>Market</strong> from the swap interface and set a priority for your transaction. </p>
</li>
</ol>
<p dir="ltr"><em>To execute the transaction faster, you can set a higher priority, although this will likely result in higher fees.</em></p>
<div dir="ltr"><img alt="Set transaction priority" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9274/content_transaction_priority.webp" style="width: 950px; height: 426px;"></div>
<ol start="4">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Set the slippage tolerance for your transaction.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Click <strong>Swap</strong> to continue.</p>
</li>
</ol>
<p dir="ltr">Approve the transaction from your wallet to complete. </p>
<h3 dir="ltr">Limit Order Swaps on Jupiter</h3>
<p dir="ltr">To place a limit order swap, head to the <strong>Limit Order</strong> section.</p>
<ol>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Select the assets you wish to swap.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Set a sell price for your order.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Set an expiry period for your order.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Set the amount you wish to exchange.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Click <strong>Place Limit Order</strong> to continue.</p>
</li>
</ol>
<p dir="ltr">Approve the transaction from your wallet to complete.</p>
<div dir="ltr"><img alt="Limit Order on Jupiter" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9275/content_limit_order_jup.webp" style="width: 950px; height: 438px;"></div>
<div dir="ltr"> </div>
<h3 dir="ltr">Dollar-Cost Averaging With Jupiter</h3>
<p dir="ltr">To DCA, navigate to the DCA section.</p>
<ol>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Select the assets you wish to swap.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"> Set an interval for the DCA swaps.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Enter the number of orders for the swap.</p>
</li>
</ol>
<p dir="ltr">To enable pricing strategy, toggle the Switch icon in the at section and enter a price range for your swap</p>
<ol start="4">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Click <strong>Start DCA</strong> to continue.</p>
</li>
</ol>
<p dir="ltr">Approve the transaction from your wallet to complete.</p>
<div dir="ltr"><img alt="DCA on Jupiter" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9276/content_DCA_jup.webp" style="width: 950px; height: 514px;"></div>
<div dir="ltr"> </div>
<h2 dir="ltr">Jupiter Token (JUP)</h2>
<p dir="ltr">The Jupiter team has shared plans for the launch of JUP, the native token of the platform. According to available information, the JUP token will not only be integrated into the project, but is meant to create a relationship between the project team, early supporters, and the growing community. Via a post on X, the Jupiter team <a href="https://twitter.com/weremeow/status/1735544950417436806?s=20" rel="nofollow noopener" target="_blank">shared</a> that the total supply of JUP tokens will be set at 10 billion. This will be split evenly between team usage and community usage.</p>
<div dir="ltr"><img alt="JUP token community and team" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9277/content_unnamed_%2825%29.webp" style="width: 950px; height: 900px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://station.jup.ag/blog/" rel="nofollow noopener" target="_blank">https://station.jup.ag/blog/</a></span></div>
<p dir="ltr">An update from the project claims that 10% of the total supply of these tokens will be used for initial liquidity provision for the JUP token. The rest of the team supply will be split between a ‘strategic reserve’ and the team itself. The team’s tokens will start <a href="https://www.coingecko.com/learn/crypto-vesting-schedules" target="_blank">vesting</a> after a year for two years. The 50% set aside for the community will be committed to community reward programs including an airdrop for early supporters and community grants. At launch, 15-20% of the total supply will go into circulation, with 10% from the first upcoming airdrop and 5% for liqudity provision. According to the team, this is scheduled for January 2024.</p>
<p dir="ltr"><img alt="Jupiter token allocation" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9278/content_unnamed_%2826%29.webp" style="width: 680px; height: 266px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://station.jup.ag/blog/" rel="nofollow noopener" target="_blank">https://station.jup.ag/blog/</a></span></p>
<p dir="ltr">Jupiter token will power the Jupiter DAO. The community will pioneer the affairs of the project via the DAO. To find out more, check out <a href="https://twitter.com/weremeow/status/1735544950417436806?s=20">the project team’s propositions for the JUP token</a>.</p>
<h2 dir="ltr">Jupiter Token Airdrop</h2>
<p dir="ltr">The Jupiter team has also shared additional information regarding an airdrop program for the project’s community. The JUP token tokenomics includes a 40% reserve for community reward programs. According to the team, there will be multiple rounds of airdrops starting with a 1B JUP token airdrop for the first round of airdrops scheduled for January 2024.</p>
<p dir="ltr">20% of the airdrop allocation will be distributed equally amongst all qualifying wallets. Community members who are active on social media will split 10% of the airdrop while the rest (70%) will be distributed to eligible wallets according to the volume transacted on the platform. </p>
<p dir="ltr">Interacting with the Jupiter platform directly or through other related platforms is the primary qualification criteria for the JUP airdrop. The team hints that token allocation per wallet will be weighed according to the frequency of interaction and total volume transacted. </p>
<p dir="ltr">There is also an OG Bonus, for users that transacted at least $10 on Jupiter before the end of March 2022. </p>
<p dir="ltr">You can check your allocation of JUP at Jupiter’s <a href="https://airdrop.jup.ag/" rel="nofollow noopener" target="_blank">official airdrop checker</a>.</p>
<p dir="ltr">Looking for more information on the airdrop? Read the project <a href="https://twitter.com/weremeow/status/1724855485507981454?s=20" rel="nofollow noopener" target="_blank">team’s announcement regarding the JUP token airdrop</a>.</p>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">On Solana, Jupiter offers users a one-stop destination that lets users get the “best price” for their swap in one place. As an aggregator, it can retrieve prices and liquidity from all DEXs connected to it. On top of that, it offers users more advanced DEX features focused on accessibility and the user experience, such as limit orders and DCA, which reduces the friction for users that are more used to centralized exchanges. </p>
<p dir="ltr">Having said this, it is still important to state that while these features are designed for ease-of-use, users still need to understand the basis of each operation. While this article provides an overview and introduction to Jupiter, there are other features, such as perpetuals, which are not covered here. This article is written for educational purposes only and should not be taken as financial advice. Always do your own research on any protocol before signing permissions with your wallet.</p>
Joel Agbohttps://www.coingecko.com/learn/what-is-jupiter-crypto-solana
What Is Jupiter?
Jupiter is a DEX aggregator on Solana that is designed to help users discover the "best price" in one place. It also has advanced features to improve accessibility, such as...tag:www.coingecko.com,2005:Post/12082024-01-29T17:11:20Z2024-01-29T09:14:10ZIt’s Always SUN-ny on Tron<p dir="ltr"><img alt="Sun Ecosystem TRON" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9268/content_2024-01-09_11.22.44.webp" style="width: 950px; height: 475px;"></p>
<p dir="ltr"><em>This article is sponsored by TRON.</em></p>
<p dir="ltr">DeFi is growing on the Tron network. Several independent applications are developing decentralized financial solutions on the network and introducing enthusiasts to self-custody alternatives to traditional financial systems. According to DefiLlama, the TVL on the Tron network sits at over $8.1 Billion at the time of writing, a 182% growth from the previous year’s figures. </p>
<p dir="ltr">As one of the major platforms on Tron, <a href="https://defillama.com/protocol/sun" rel="nofollow noopener" target="_blank">applications within the Sun ecosystem</a> now contribute ~4.5% of Tron’s total TVL. Join us as we dive into the inner workings of the Sun Ecosystem and how it intertwines with the larger DeFi scene on Tron.</p>
<h2 dir="ltr">The Sun Ecosystem</h2>
<p dir="ltr"><a href="https://sun.io/?lang=en-US#/home" target="_blank">Sun Ecosystem is a hub of interrelated DeFi applications</a> and protocols. It unifies several decentralized products to present a one-stop platform for routine financial applications. In the fourth quarter of 2021, Sun.io acquired JustSwap and has since then continued to build optimized applications that leverage similar technologies. With over $300 million worth of crypto assets locked up across applications in the Sun ecosystem and an average of $35 million of daily asset trades, Sun Ecosystem is developing a <a href="https://www.coingecko.com/learn/liquidity-efficiency-defi" target="_blank">liquidity-efficient</a> and best-in-class DeFi facility for the Tron network.</p>
<h3 dir="ltr">Core Goals of the Sun Ecosystem</h3>
<h4 dir="ltr">Community Ownership and Control</h4>
<p dir="ltr">Sun Ecosystem is owned by the SUN DAO and its community. <a href="https://www.coingecko.com/en/coins/sun-token" target="_blank">Sun token</a> holders constitute the <a href="https://www.coingecko.com/learn/daos-community-organizers-of-web3" target="_blank">DAO</a>. Members of the DAO take up the role of making decisions on core aspects of the ecosystem. This cuts across technological, administrative, and marketing developments. The Sun <a href="https://www.coingecko.com/learn/governance-tokens" target="_blank">governance</a> structure is designed to promote participation by every member of the Sun and Tron community. Apart from a DAO portal where community members can submit and vote on proposals, Sun also runs a diversified governance system with support for external communities. External communities are invited to lock up a minimum amount of Sun tokens and participate in the governance mining activity. This opens up the ecosystem to as many people as possible.</p>
<h4 dir="ltr">Performance and security</h4>
<p dir="ltr">The Sun ecosystem hopes to be a model for DeFi on the Tron network. It is doing this by ensuring that every application in its hub is optimized for high throughput and scalability. Sun ecosystem applications are high-capacity and built to scale elastically to serve fluctuating demands. Developers in the ecosystem also appreciate that these applications manage significant financial assets and operations. With a high emphasis on security, each smart contract is subjected to a strict testing routine With every new update, the developers are also adding new features and improving its security.</p>
<h4 dir="ltr">Optimal experience and adoption</h4>
<p dir="ltr">Liquidity efficiency in Sun ecosystem applications means that users can perform their activities with the lowest possible <a href="https://www.coingecko.com/learn/slippage-crypto" target="_blank">slippage</a>. The ecosystem is designing liquidity-building programs through incentives and tokenomics and also intuitive interfaces to allow users to grasp the basic operations at a glance. These are meant to deliver the best experience to existing users and invite users from outside the Tron community to embrace DeFi on the network.</p>
<h2 dir="ltr">Key Applications of the Sun Ecosystem</h2>
<h3 dir="ltr">SunSwap</h3>
<p dir="ltr"><a href="https://sun.io/?lang=en-US#/v3/swap" target="_blank">SunSwap</a> is the Sun ecosystem’s flagship automated market maker (AMM) decentralized exchange. It serves a pivotal role in the ecosystem, and the V3 upgrade has introduced several interesting features to the DEX. TVL in SunSwap pools totals over $320 million. SunSwap is permissionless, meaning users can perform swaps without giving up custody of their assets. New assets can also launch their tokens on the platform without paying a listing fee to any central body.</p>
<p dir="ltr">The <a href="https://www.coingecko.com/learn/liquidity-pools-crypto-defi" target="_blank">liquidity pool</a> and <a href="https://www.coingecko.com/learn/what-is-an-automated-market-maker-amm" target="_blank">AMM</a> system provide users an opportunity to participate in DeFi and also earn passive rewards in the process. Users can lock up their assets in the liquidity pools on Sunswap and earn passive income from trading fees paid by users. Liquidity providers also receive LP tokens, which can be further staked in yield farming pools to earn specified rewards. The yield farming program offers up to 23% APY in rewards. USDT pairs of JST, WIN, NFT, and BTT tokens are supported by the yield farming program.</p>
<p dir="ltr">Some of the new features of SunSwap following the <a href="https://sunio.zendesk.com/hc/en-us/articles/19842988643609-Announcement-on-Launching-SunSwap-V3" target="_blank">V3 upgrade</a> include segmented liquidity and a tiered fee rate. Segmented liquidity allows users to provide liquidity at specific price ranges. The tiered fee rate features allow users to set trading fees according to the assets' volatility. Users can select higher fee rates for more volatile and (or) less traded assets and vice versa.</p>
<p dir="ltr">The Sun.io team claims that these features make SunSwap V3 a flexible and efficient asset management tool that provides higher returns for investors</p>
<h3 dir="ltr">SunCurve</h3>
<p dir="ltr">Experience smooth swaps between your favorite stablecoins on the SunCurve platform. Over $20 million worth of stablecoins are locked on SunCurve at the time of writing. <a href="https://sun.io/?lang=en-US#/sunCurve" target="_blank">SunCurve is an AMM Swap</a>, similar to SunSwap, but a major difference is its preference for stable assets. Liquidity pools on SunCurve support only <a href="https://www.coingecko.com/learn/what-are-stablecoins-top-5-stablecoins-by-market-cap" target="_blank">stablecoins</a> at this time. This is in line with providing a low slippage, low volatility, and overall stable exchange for users on the Tron network. </p>
<p dir="ltr">SunCurve’s stablecoin pools, consisting of USDD, USDT, TUSD, and USDC, present users with a platform to swap between stablecoins. As part of the incentive system, liquidity providers receive rewards on the asset supplied to the pool. Additionally, liquidity provision is also extremely flexible, as users can choose between supplying multiple assets in equal proportions or supplying just a single asset.</p>
<h3 dir="ltr">USDD Peg Stability Module (PSM)</h3>
<p dir="ltr">USDD is a pivotal asset in Tron’s DeFi ecosystem. The stablecoin is issued at a 1:1 ratio with the US dollar and is meant to maintain this position regardless of market conditions. The Tron DAO is constantly working on means to not only strengthen the USD peg of the USDD stablecoin but also to realize an over-collateralized stablecoin system. The idea is to provide multiple approaches to maintaining the peg and ensure battle-tested stability for the USDD stablecoin. <a href="https://docs.usdd.io/psm/the-psm" target="_blank">The PSM Module </a>is one of these strategies.</p>
<p dir="ltr">Tron DAO claims that strategies similar to the PSM mechanism have been used in several other instances in the industry and fit the USDD system as well. Here’s how it works:</p>
<p dir="ltr">PSM is a modification of the initial issuance and distribution mechanism of USDD. It is a fixed ratio swap module for the USDD, allowing USDD to be swapped at a 1:1 ratio with other stablecoins like USDJ, USDT, and USDC without any debt and management risk. It is structured in such a way that users pay no handling fee and swap assets with zero slippage. This ensures that no extra charges are incurred in the process and tightens the 1:1 swap ratio.</p>
<p dir="ltr">The PSM also introduces a SafeVault and a smooth remittance process that utilizes conversion between TRC-10 and <a href="https://www.coingecko.com/learn/tron-trc-20-token-standards" target="_blank">TRC-20</a> USDD. It moves authorized but unissued USDD to the SafeVault and serves swap requests from the vault. Upon user request, it converts TRC-10 USDD to TRC-20 USDD and transfers it to users. Conversely, it also converts TRC-20 USDD to TRC-10 USDD and moves it into the SafeVault. Tron DAO claims that this mechanism doesn’t affect the USDD supply statistics but ensures a fixed exchange ratio for stablecoins, promoting a more stable collateral base and, hence, a stronger USD peg.</p>
<p dir="ltr">The PSM provides a market for the USDD and an opportunity for <a href="https://www.coingecko.com/learn/what-is-crypto-arbitrage-trading-and-is-it-profitable" target="_blank">arbitrageurs</a> to gate-keep the peg while making significant profits. For instance, when the price of USDD goes below $1, an arbitrageur can purchase USDD and redeem it at $1 through any other supported stablecoin. The reverse also applies when the value of USDD goes above $1. The PSM governance system regulates certain aspects of the protocol, such as fees and swap limits.</p>
<h3 dir="ltr">Farm</h3>
<p dir="ltr">The Sun ecosystem offers exciting rewards, not just through yield farming programs on the decentralized exchanges but also through the exclusive <a href="https://sun.io/?lang=en-US#/stake/two" target="_blank">governance farming program</a>. The governance farming program offers rewards to community members who lock up their Sun token. The farming program consists of the Sun locking incentive program and the liquidity pool farms. These are related.</p>
<p dir="ltr">Users who lock their Sun token get veSun tokens in return. veSun allows holders to vote on governance proposals and also enjoy benefits such as 50% of all the stablecoin pools’ trading fees (distributed amongst all stakers accordingly), as well as boosted mining APY on other pools. Sun.io team claims that veSun holders enjoy 2.5X improved rates in liquidity mining.</p>
<p dir="ltr">The liquidity pool farms offer varying APY for the different pools. Users stake the LP token of the assets supported by each pool and enjoy the stipulated reward. Rewards are paid out in USDD. As part of the governance mining program, veSun holders can improve their rewards by voting on their pools and using the booster feature. The governance weight of each pool determines the booster effect.</p>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">The idea behind the SUN ecosystem is simple - build a hub of decentralized applications and optimize their operations on the Tron blockchain through interoperability between themselves and applications from other networks. The ecosystem is a one-stop platform for DeFi enthusiasts on the Tron network and the crypto space at large. It is optimized for yield farmers, stable and non-stablecoin stakers, and anyone looking to be part of decentralized governance. Sun ecosystem, through its governance structure, transfers control of the platform to its token holders.</p>
<p dir="ltr">The Sun ecosystem is building a model for decentralized finance on the Tron network, and each application in its hub is not only open for general use but also a prototype for other developers hoping to build similar applications on the network. The interface is designed for easy comprehension. Regardless of the users’ technical background, they will be able to carry out basic operations on the platform.</p>
<p dir="ltr">According to information from the project, every contract that controls the operation of these applications has been audited for technical stability and security, as these applications manage significant amounts of user funds. With continued development and growth, there will likely be even more applications added to the ecosystem in the future. </p>
CoinGeckohttps://www.coingecko.com/learn/sun-ecosystem-tron-defi
This article is sponsored by TRON.
DeFi is growing on the Tron network. Several independent applications are developing decentralized financial solutions on the network and introducing enthu...tag:www.coingecko.com,2005:Post/11742024-01-26T00:02:20Z2024-01-26T07:49:14ZWhat Is GambleFi and How Does It Bring Gambling On-Chain?<h2>What Is GambleFi? </h2>
<p><meta charset="utf-8"></p>
<p dir="ltr">GambleFi is the collective term for decentralized applications providing crypto-based betting services. It refers to the movement of bringing online gambling on-chain to improve the user experience (transparency and fairness) and sidestepping many of the headwinds faced by the traditional model.</p>
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<h3 dir="ltr">Key Takeaways </h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">GambleFi denotes the convergence of gambling and blockchain technology. The distinctive feature being value accrual/ revenue share for token holders – the ability to own part of the house.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">The starting point for this narrative was Rollbit’s migration to Ethereum earlier this year on June 28th. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Gambling as an industry boasts a predicted CAGR of 8.54% until 2027. There is still plenty of growth available, not to mention the potential of eating more traditional venue’s market share – competitive displacement – for these decentralized players.</p>
</li>
</ul>
<hr>
<div dir="ltr"><img alt="GambleFi Narrative Crypto" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9255/content_GambleFi_Narrative_Crypto.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr"><em>This article is sponsored by Rollbit.</em></p>
<p dir="ltr">Gambling and crypto walk hand in hand and can loosely be considered adjacent industries on the basis that the agents operating within these zones possess a higher risk tolerance than most economic actors.</p>
<p dir="ltr">When discussing the GambleFi narrative, it must be clearly stated and understood that the projects contained within this category possess tokens with revenue-sharing properties. Users can ‘own’ a piece of the house for the first time. They can stand behind the curtain and share in the profits. This factor created and fueled the buzz surrounding these projects.<br>
<br>
Any gambling entity has ingrained statistical advantages that ensure its profitability. Hence, the expression – the house always wins. But under the GambleFi flag, users can stand on the same side as the house, and holding any of these tokens at a high level is a bet that gamblers using the services will, on the whole, lose money. </p>
<p dir="ltr">Regulatory stance on this new outcrop of protocols remains incredibly murky, and with little oversight, crypto-based betting platforms can be fairly equivocated with offshore casinos. <a href="https://www.coingecko.com/learn/crypto-narratives" target="_blank">Narratives</a> move fast, and regulation moves slow – a caveat to hold in mind when discussing projects under this broad umbrella. </p>
<p dir="ltr">Before we dive into GambleFi, please note that this article is only intended to provide an overview of the GambleFi narrative in cryptocurrency, featuring key protocols in the space, and should not be taken as promoting gambling. </p>
<h2 dir="ltr">How Does GambleFi Work?</h2>
<p dir="ltr">GambleFi protocols in their simplest form are online venues leveraging <a href="https://www.coingecko.com/learn/what-is-a-blockchain" target="_blank">blockchain</a> technology, where users can make transparent wagers and own part of the house. Transparency and ownership/revenue share are the two distinguishing qualities of these protocols.</p>
<p dir="ltr"><strong>Transparency</strong> means provably fair results where users can verify the authenticity and statistical probability of their bets instead of relying on a centralized black box and an undisclosed algorithm. The results cannot be manipulated due to cryptographic hash functions. <strong>Ownership</strong> relates to the ability of an ordinary participant to own a token and earn a percentage of the platform earnings. </p>
<p dir="ltr">Picking apart the GambleFi narrative from more generic crypto casinos/gambling applications always comes down to tokenomics – the key feature being a stakeholder token that entitles holders to a portion of the generated revenue. </p>
<h2 dir="ltr">The Origins of GambleFi</h2>
<p dir="ltr">Crypto and gambling have a long intertwined history. SwitchPoker introduced Bitcoin for the first time in August 2011, SatoshiDice was launched in 2012, Bitcasino and BitStarz came in 2014, industry leader Stake came along in 2017, RooBet launched in 2019, and all the way to the more modern era when Rollbit launched in 2020. </p>
<p dir="ltr">Although the GambleFi narrative took off in early 2023, crypto casinos have been widely popular since 2014. It was a breakthrough year with the Curacao Gambling Licensing Authority granting BitCasino a license. The year 2021 was another huge year for crypto-based gambling. Twitch streamers with massive audiences used crypto casinos on their streams, and YouTubers with younger viewerships aggressively promoted these platforms.</p>
<p dir="ltr">Since early 2014 crypto-based gambling fee generation and revenue have essentially been up-only on a long-term horizon. There have been drawdowns during bear markets, but the broader upward trend remains unbroken, mirroring the growth of the wider gambling industry. </p>
<h3 dir="ltr">Crypto Twitter’s Hand in GambleFi</h3>
<p dir="ltr">Gainzy and Jingtao have played oversized roles in bringing GambleFi to its current crescendo with outrageous wagers and the dashing sprinkle of degeneracy adored by the community. Gainzy introduced a solid formula. Make huge bets, draw attention to the platform, and act as a user funnel. </p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="zxx"><a href="https://t.co/vM5f9M9uxC">https://t.co/vM5f9M9uxC</a> <a href="https://t.co/5axbnLAj26">pic.twitter.com/5axbnLAj26</a></p>
— gainzy (@gainzy222) <a href="https://twitter.com/gainzy222/status/1720508111843193155?ref_src=twsrc%5Etfw">November 3, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">Jingtao is more enigmatic and has a quasi-unbelievable talent for sports betting. He arrived on Crypto Twitter, made a splash with a string of outrageous parlays, and then disappeared, only to resurface weeks later under a new handle. He provides an insight into how these entities treat what can be called ‘winners.’ Stake curtailed his wager limit – a problem faced by statistical oddities in the gambling industry that will likely never disappear whether in-person or on-chain. </p>
<div dir="ltr"><img alt="Jingtao on Twitter" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8916/content_Jingtao.webp"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://twitter.com/littlestpwince/status/1718795962922266763" rel="nofollow noopener" target="_blank">https://twitter.com/littlestpwince/status/1718795962922266763</a> </span></div>
<p dir="ltr">Enormous wins and huge stakes from these actors fanned the flames of greed on both sides of the aisle. Certain people saw the bets and had ideas of replicating this success. Others realized that more and more people would now be wagering and sought to grab a piece of the ‘house.’</p>
<p dir="ltr">An influx of new users betting and an influx of investors chasing tokens hoping to earn from these new users. And just like that, the GambleFi narrative was born.</p>
<div dir="ltr"><img alt="GambleFi on Ethereum" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9257/content_GambleFi_on_Ethereum.webp" style="height: 838px; width: 950px;"></div>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://dune.com/cryptokoryo/gamblefi" rel="nofollow noopener" target="_blank">https://dune.com/cryptokoryo/gamblefi</a> </span></p>
<h2 dir="ltr">Why Is GambleFi Taking Off? </h2>
<p dir="ltr">The above on-chain data shows the explosion of the narrative. Rollbit’s migration to the Ethereum blockchain occurred in late June and fired the starting pistol. Ethereum is where all the ‘old money’ lives in crypto, and all the capitalized degens reside. </p>
<p dir="ltr">Add bear market fatigue and boredom, which has a habit of pushing investors towards faster flips – remember <a href="https://www.coingecko.com/learn/what-are-meme-coins-why-are-they-so-popular" target="_blank">memecoin</a> mania – and into more speculative projects hoping to ride the wave fast and get out faster. HAMS perfectly exemplifies both behaviors – users resorted to betting on hamster racing, doing anything to alleviate the boredom.</p>
<p dir="ltr">Capitalized degens had a quick-fire method to speculate, with Rollbit offering classic casino games, sports betting, and futures trading. At this stage, there were users, but the real fireworks began in August when a tokenomics upgrade was announced. </p>
<p dir="ltr">Now, investors piled in, and the narrative had both sides. In the depth of the bear market, led by Rollbit, protocols emerged, boasting real users, growth, revenue, and speculative interest from investors. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="GambleFi on Arbitrum" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9256/content_GambleFi_on_Arbitrum.webp" style="height: 838px; width: 950px;"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://dune.com/cryptokoryo/gamblefi" rel="nofollow noopener" target="_blank">https://dune.com/cryptokoryo/gamblefi</a> </span></div>
<p dir="ltr">Outside of Rollbit's absolute dominance on Ethereum, <a href="https://www.coingecko.com/learn/arbitrum-ecosystem-bridge-airdrop" target="_blank">Arbitrum</a> has become the hotbed of innovation for the GambleFi narrative and entertainment projects. Given its low cost and speed, it presents an obvious choice and houses two of the narrative's most interesting players. </p>
<p dir="ltr">The following section dives into three projects in the GambleFi space. It must be noted that hundreds of protocols are operating in this zone, and the following projects have been selected for addressing specific market verticals, helping paint a panoptic picture of the narrative. </p>
<hr>
<div dir="ltr" style="text-align: center;"><img alt="This Section Is Sponsored by Rollbit" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9254/content_Rollbit_Sponsorship_%281%29.webp" style="width: 400px; height: 73px;"></div>
<div dir="ltr" style="text-align: center;"> </div>
<h2 dir="ltr">Rollbit: All-in-One Gambling Powerhouse</h2>
<div dir="ltr"><img alt="Rollbit" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8919/content_rollbit-logo-768x203.webp" style="height: 251px; width: 950px;"></div>
<p dir="ltr">Rollbit has everything any traditional gambler or Web3 degenerate could want and more. Betting on the king has been a proven winning strategy in crypto, and Rollbit dominates the space without question. It faces competition from traditional platforms such as Stake and Roobet, which both offer conventional slot games and sports betting, and competition from more crypto-native betting platforms such as Shuffle. </p>
<p dir="ltr">Beyond traditional GambleFi offerings, Rollbit is also experimenting with new formats, such as its latest feature “Duel Arena.” Duel Arena is a 0% edge PVP game inspired by RuneScape, where users can wager cryptos, RLB, or NFTs. Rollbit takes no commission, and these luck-based duels will be verifiable on-chain via a hash and secret server seed that is released after the duel. It is a nostalgic winner-takes-all environment- perfect for the current class of crypto degens. </p>
<p dir="ltr">Outside of Duel Arena, the Rollbit platform provides three central services to the demand side: casino slot games, sports betting, and high-leverage futures.</p>
<div dir="ltr"><span style="font-size:11px;"><img alt="Rollbit Futures" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8920/content_rollbit_futures.webp" style="height: 548px; width: 950px;"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://rollbit.com/" target="_blank">https://rollbit.com/</a> </span></div>
<p dir="ltr">Rollbit’s futures have become incredibly popular for several reasons. Firstly, low slippage makes them attractive. Second, the gamified interface. Third, the high leverage available for true degenerates. And finally, a nice and often underappreciated bonus of these futures contracts is that by nature of being futures, traders can avoid paying buy and sell taxes on tokens such as BANANA while still being able to speculate on the price movement. The perfect intersection of gambling and crypto? </p>
<h3 dir="ltr">Rollbit And The Power Of Token Price Go Up</h3>
<p dir="ltr">There has never been any better marketing in crypto than token price going up. In early August Rollbit announced its Buyback and Burn program – arguably the crowning factor in its success. </p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">RLB Revamped Tokenomics 🔥<br>
<br>
~1 month ago we publicly stated that our primary goal is to make RLB the cornerstone of Rollbit.<br>
<br>
Today we will deliver on that promise through launching the most impactful and highly anticipated feature to date: Buy & Burn<br>
<br>
From today onwards, revenue… <a href="https://t.co/tRzUWwBq1a">pic.twitter.com/tRzUWwBq1a</a></p>
— Lucky (@Lucky_Rollbit) <a href="https://twitter.com/Lucky_Rollbit/status/1688965999695958022?ref_src=twsrc%5Etfw">August 8, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">The concept is simple: take a percentage of the protocol revenue and use it to buy the <a href="https://www.coingecko.com/en/coins/rollbit-coin" target="_blank">RLB</a> token. This process is executed entirely on-chain. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8922/content_rlb_coingecko.webp"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://www.coingecko.com/en/coins/rollbit-coin" target="_blank">https://www.coingecko.com/en/coins/rollbit-coin</a> </span></div>
<p dir="ltr">Following the announcement, the value of RLB skyrocketed more than 70% and has been in a progressive up-trend since. Why was this move genius? Not only does it distribute more value to token holders, but in bear markets, when <a href="https://www.coingecko.com/learn/liquidity-crypto" target="_blank">liquidity</a> is thin, adding one-sided buy pressure to a capital desert has an oversized effect on price. In the bull, revenue share wins out, but in the bear, buybacks are king. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="Rollbit revenue" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8923/content_rollbit_revnenue_30_d.webp" style="height: 632px; width: 950px;"></span></div>
<div dir="ltr">
<span style="font-size:11px;">Source: <a href="https://rollbit.com/" target="_blank">https://rollbit.com/</a> </span> </div>
<p dir="ltr">Rollbit’s revenue speaks for itself. The investment thesis is open and apparent: Rollbit generates revenue, it uses a portion of this for its Buyback and Burn program, the token price goes up, and the flywheel continues. The ability of Rollbit to deliver revenue and token appreciation for holders has undoubtedly pushed it to the center of the GambleFi narrative. Still, observing Rollbit's performance in a bull market will be more interesting. </p>
<p dir="ltr">As investors satiate risk-taking behavior in markets will it lead to a decrease in Rollbit’s casino revenue? It remains unknown, but thanks to its Futures offerings, which will likely overtake its casino earnings as speculative appetite rises, Rollbit appears well-positioned to enjoy continued success. </p>
<p dir="ltr">The central critique of the platform is that Rollbit does not operate entirely on-chain. It also does heavily promote gambling through influencers, but at the end of the day, gambling will always exist, and at least token holders see some of the upside.</p>
<hr>
<h2 dir="ltr">WINR: GambleFi’s Native Liquidity Layer </h2>
<div dir="ltr"><img alt="WINR" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9252/content_Winr.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr">WINR operates in a different segment of the GambleFi narrative. Whereas Rollbit is an all-in-one casino with everything under one roof, WINR offers on-chain liquidity infrastructure for gambling protocols. Any on-chain game can leverage WINR as a counterparty, and it provides liquidity as well as incentives. Its current central competitor is Azuro. </p>
<p dir="ltr">Indeed, a more meta-play WINR provides unique advantages to all participants. Developers plug into a deep counterparty liquidity engine. Players enjoy fair games immediately settled on-chain and receive incentives in vWINR. And investors providing liquidity have the odds stacked in their favor. Everybody wins. </p>
<p dir="ltr">A key factor distinguishing WINR from many other operators in the GambleFi narrative is that it is fully decentralized and exists wholly on-chain. More excitingly, given WINR’s nature as a liquidity counterparty, its services provide the foundations for an essentially unlimited number of gambling protocols to be built on top of it. </p>
<p dir="ltr">Asset vaults have played a crucial role in DeFi, and all trades/ wagers require a counterparty. Users trading on <a href="https://www.coingecko.com/learn/what-is-a-decentralized-crypto-exchange-dex" target="_blank">DEXs</a> use liquidity providers as counterparties. The rise of <a href="https://www.coingecko.com/learn/what-is-gmx-guide-to-the-decentralized-perpetual-exchange" target="_blank">GMX</a> and its GLP product brought attention to the potential of these community-owned counterparty vaults. Now, WINR delivers liquidity tooling relying on community liquidity that can scale horizontally as the GambleFi narrative grows. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="WINR Model" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8925/content_winr_model.webp" style="height: 582px; width: 950px;"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://docs.winr.games/" rel="nofollow noopener" target="_blank">https://docs.winr.games/</a> </span></div>
<h3 dir="ltr">WINR’s Mechanics And Implementations </h3>
<p dir="ltr">The model is simple: WINR provides a liquidity stack. The liquidity token WLP is the counterparty for any game, and developers get plug-and-play access. $WLP token holders do not just own a piece of the house- they are the house.</p>
<p dir="ltr">WINR is currently developing a native blockchain built using Arbitrum Orbit. Dubbed the ‘Chain as a Backend’ approach, the WINR chain will replace traditional centralized backends and provide customized infrastructure to iGaming platforms – iGaming referring to any betting activities occurring online. All results will be verifiable on-chain, and eliminating intermediaries will reduce operational costs and improve efficiency. </p>
<p dir="ltr">At a high level, WINR wants to bring everything on-chain and deliver a new standard of transparency for players while creating a community-owned house. An obvious frontrunner when it comes to decentralization within GambleFi. </p>
<p dir="ltr">To date, WINR Labs has pushed two projects, and cumulatively, they have executed more than $260 million in volume. JustBet is a more typical decentralized casino providing provably fair games of chance, and DegenBets is precisely what it sounds like. A high-octane trading platform with leverage starting at 100X and scaling to 1000X. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="WINR Implementations" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8926/content_winr_implementations.webp"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://dune.com/0xroll/justbet" rel="nofollow noopener" target="_blank">https://dune.com/0xroll/justbet</a> / <a href="https://dune.com/0xroll/degensbet" rel="nofollow noopener" target="_blank">https://dune.com/0xroll/degensbet</a> </span></div>
<div dir="ltr"> </div>
<h3 dir="ltr">WINR’s Future And Tokenomics</h3>
<p dir="ltr">WINR employs a dual-token strategy with WLP – a basket consisting of WBTC, ETH, USDC, and USDT – acting as the counterparty and <a href="https://www.coingecko.com/en/coins/winr-protocol" target="_blank">WINR</a> and vWINR used as the liquidity incentives to drive volume through the WLP pool. Players of games using the WLP pool receive rewards in the latter (vWINR). </p>
<p dir="ltr">The WINR team has implemented a Bribe mechanism to ensure value accrual for WINR holders. The WLP pool pays a variable fee on each input. In short, every time a wager is made against the WLP pool, a percentage gets distributed to the WINR/vWINR staking pool (60%), a percentage goes to the buyback and burn of WINR (20%), and a portion goes to core developers (20%). </p>
<p dir="ltr">More than 75 million WINR tokens have been burnt – a little over 7.5% of the max supply. Additional revenue streams feed value accrual, such as unstaking fees and swap fees for the liquidity provider pool, which charges varying fees depending on the pool composition to encourage a healthy balance of assets. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="WINR revenue" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8927/content_winr_revenue.webp" style="height: 241px; width: 950px;"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://dune.com/0xroll/justbet" rel="nofollow noopener" target="_blank">https://dune.com/0xroll/justbet</a> </span></div>
<p dir="ltr">In just six months from its launch, WINR has netted over $250,000 in profit for WLP, and total revenue has surpassed $1.1 million. The release of the WINR chain will add further demand and utility for WINR functioning as the network’s gas token. The new chain will feature <a href="https://www.coingecko.com/learn/account-abstraction-crypto" target="_blank">Account Abstraction</a> as the norm, upgrading the user experience and allowing liquidity to flow freely between any game that integrates WINR’s liquidity solution. </p>
<p dir="ltr">In short, the team has shipped aggressively, provided a fully decentralized infrastructure for online gaming, and created <a href="https://www.coingecko.com/learn/real-yield-defi" target="_blank">real yield</a> on a deflationary asset. </p>
<h2 dir="ltr">Dream Machine: Blockchain-Based Game Console </h2>
<div dir="ltr"><span style="font-size:11px;"><img alt="Sanko Dream Machine" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8928/content_sanko_dream_machine.webp" style="height: 517px; width: 950px;"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://sankodreammachine.net/" rel="nofollow noopener" target="_blank">https://sankodreammachine.net/</a> </span></div>
<p dir="ltr">Rollbit is the in-house gambling experience, WINR is the liquidity engine, and Sanko Dream Machine can be best construed as a gaming/ gambling layer. It straddles more verticals and has increasingly pivoted towards becoming a <a href="https://www.coingecko.com/learn/what-are-layer-3s-crypto" target="_blank">Layer 3</a> <a href="https://www.coingecko.com/learn/what-are-appchains-application-specific-blockchains" target="_blank">app-chain</a> with the release of SankoTV – a decentralized alternative to Twitch where users can trade passes. </p>
<p dir="ltr">Beginning as a blockchain-based arcade built on Arbitrum centered around the native token <a href="https://www.coingecko.com/en/coins/dream-machine-token" target="_blank">DMT</a>, Dream Machine was a pivotal player early in the GambleFi narrative. It boasts a variant of Tekken and other games like Poker, with prizes distributed in DMT to players at the end of each epoch (ten days). </p>
<p dir="ltr">Running with the analogy of an arcade, DMT functions as the tokens players need to play the games and acts as the medium of exchange across the entire economy. DMT can be staked to become a stakeholder in the ecosystem earning DMT rewards and became particularly popular due to the token having no VCs or early purchasers alongside the meme support of the Milady and Remillio swathes of Crypto Twitter.</p>
<p dir="ltr">A teaser of the SankoScanblock explorer was released in August this year. This is part of the Sanko GameCorp’s larger pivot towards becoming an entertainment chain – an Arbitrum Layer 3 app-chain seeking to become a virtual gaming console. </p>
<div dir="ltr"><span style="font-size:11px;"><img alt="SankoScan" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/8929/content_sankoscan.webp"></span></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://twitter.com/SankoGameCorp/status/1687860889297567744" rel="nofollow noopener" target="_blank">https://twitter.com/SankoGameCorp/status/1687860889297567744</a> </span></div>
<p dir="ltr">This token-based gaming ecosystem brings the best of decentralization to streamers, allowing for more direct value transfers from viewers, and has built out an increasingly impressive roster of games. The launch of the Layer 3 will further increase value capture for DMT holders and allow for the expansion of the SocialFi element. </p>
<h2 dir="ltr">Can GambleFi Improve the Gambling Experience? </h2>
<p dir="ltr">GambleFi has enjoyed wild success as a narrative, but the question remains: can these protocols improve the experience for users versus traditional gambling outlets? </p>
<p dir="ltr">Overall, there are several notable improvements for both sides of the aisle. Gamblers enjoy greater transparency with everything housed on-chain and faster withdrawals, and investors have been allowed to take the role of the house and participate in the earnings resulting from their losses. The larger question is, do gamblers genuinely care about fairness and transparency? Unfortunately, there is no concrete answer to this question. </p>
<p dir="ltr">The success of platforms such as Stake and Roobet shows that the appetite for speculation remains high even without token ownership, and crypto payment rails are alluring to many would-be gamblers. The important meta point for the GambleFi narrative is that the house always wins, and gamblers always lose on aggregate. Decentralized gambling protocols are unique in the fact that investors can hold a piece of the house, and this remains by far the most significant upside of the deployment of on-chain gambling houses. </p>
<h2 dir="ltr">The Future of GambleFi </h2>
<p dir="ltr">Online gambling revenue is projected to reach $95.05 billion in 2023 and grow with a CAGR of 8.54% until 2027, resulting in a market size of $131.90 billion. User penetration will ostensibly increase from 2.3% to 2.9% in the same period. In layman’s terms, there is still a colossal amount of room for the GambleFi narrative to grow. </p>
<p dir="ltr">Conversely, bolstered market sentiment may lead to a reduction in more traditional slot-style games as investors manage to satiate their risk appetite in markets. A study released in 2023, ‘How Do Financial Market Outcomes Affect Gambling?' compared racetrack wagering, the cornerstone of modern gambling, and showed that excess stock market returns negatively impacted gambling expenditures. This follows the classic wisdom that gambling becomes far more enticing during economic downturns. The logical inference is that leveraged trading services will become the primary breadwinners for GambleFi protocols headed into the bull market. And platforms providing these services are the ones to watch.</p>
<p dir="ltr">Negative headwinds include the crackdown from streaming platforms curtailing one of the most prominent user funnels. But, the most significant fear comes from a regulatory crackdown.</p>
<p dir="ltr">Europe leads the revenue race, trailed by North America and Asia Pacific. Growing crypto adoption worldwide will inevitably lead to more users gambling with crypto. Again, these market actors exist in close proximity on the risk tolerance scale. And a feasible argument can be made that on-chain sports betting could become a trojan horse for crypto. </p>
<p dir="ltr">Other long-tail growth impetuses come from the rising popularity of eSports betting and iGaming in Asia Pacific and China’s stringent regulation providing a perfect push factor toward online and perhaps on-chain gambling. </p>
<p dir="ltr">The reality is that as market sentiment flips increasingly bullish and risk-taking behavior gets rewarded, people’s risk tolerance skews, and they begin to engage in riskier and riskier behavior. This psychological aspect will be the largest growth driver for these speculative protocols, and again, projects with leveraged trading and futures functionalities will grow faster than their competitors. </p>
<p dir="ltr">Despite only mentioning three protocols, hundreds, if not thousands of contenders are in the GambleFi race. They are broadly distinguished into three categories: all-in-one in-house gambling bonanzas, liquidity layers/counterparty backends, and custom entertainment chains. </p>
<p dir="ltr">There is no denying the blunt reality that gambling is fun. The human brain has a penchant for randomness and variable reward ratio interactions. Sometimes an uncontrollable desire to engage in such behavior hence why governments take a stern approach to regulation. Still, GambleFi presents the first instance of ordinary folks being able to share in the house's profits, and for that alone, these decentralized alternatives deserve a nod of respect. </p>
<p dir="ltr">This article is for educational purposes only and is designed to provide an overview of the GambleFi narrative in crypto. It should not be taken as investment advice or promotion of gambling. Always do your own research before investing in any cryptocurrency protocol. </p>
Kofi Jhttps://www.coingecko.com/learn/what-is-gamblefi-cryptoWhat Is GambleFi?
GambleFi is the collective term for decentralized applications providing crypto-based betting services. It refers to the movement of bringing online gambling on-chain to i...tag:www.coingecko.com,2005:Post/12102024-01-25T11:58:59Z2024-01-30T07:15:48ZTop Solana Projects to Watch in 2024<p><meta charset="utf-8"></p>
<h2 dir="ltr">What Are the Top Projects to Watch on Solana in 2024?</h2>
<ul dir="ltr">
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<strong>DEXs</strong>: Jupiter, Orca and Drift</li>
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<strong>Lending protocols</strong>: Solend, Marginfi and Kamino</li>
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<strong>Staking</strong>: Marinade Finance and Jito</li>
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<strong>NFTs</strong>: Mad Lads and Tensorians</li>
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<strong>Others</strong>: Helium and Render Network</li>
</ul>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Solana is a Layer 1 that offers high throughput and low fees for transactions. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">With over 125 protocols in its ecosystem, the Solana blockchain executes an average of 100 million transactions daily.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">The Solana ecosystem includes DEXs like Jupiter and Orca, lending protocols like Solend, liquid staking protocols like Marinade Finance and Jito, and NFT projects like Mad Lads.</p>
</li>
</ul>
<hr>
<div dir="ltr" role="presentation"><img alt="Top Projects to Watch on Solana" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9251/content_Top_Projects_to_Watch_on_Solana.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr" role="presentation">The Solana network and its ecosystem is seeing a new boom. Thanks to the project’s recovery (price-wise), a significant reduction in network outages (none since February 2023), and an array of positive events around the project in the last quarter of 2023, Solana has become a strong point of attention for cryptocurrency investors and developers. Existing projects on the ecosystem are seeing an increased adoption while new projects are exploring the benefits of deploying on the networks.</p>
<div dir="ltr"><img alt="Solana Token Price 2023" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9210/content_unnamed_%2823%29.webp" style="width: 950px; height: 694px;"></div>
<p dir="ltr">Solana boasts cheap transactions and faster processing speed relative to many other smart contract blockchains. According to the network explorer, the <a href="https://analytics.solscan.io/overview" rel="nofollow noopener" target="_blank">Solana network processes at least 100 million transactions daily from an average of 500,000 active wallets</a> and tons of decentralized applications and smart contract tokens.</p>
<p dir="ltr">The network has also seen a boom in <a href="https://www.coingecko.com/learn/what-are-meme-coins-why-are-they-so-popular" target="_blank">memecoins</a>, which has contributed significantly to the increased network activities. Other catalysts for this growth in activity include developments from popular projects in the ecosystem like Jupiter exchange, Jito, and Tensorian.</p>
<p dir="ltr"> Now, let’s look at some of the biggest projects on Solana and their key features.</p>
<h2 dir="ltr">Jupiter: Streamlining Token Swaps on Solana</h2>
<div dir="ltr"><img alt="Jupiter Solana" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9211/content_jupiter_swap.webp" style="width: 950px; height: 573px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-jupiter-crypto-solana" target="_blank">Jupiter</a> claims to be building a decentralized replacement for <a href="https://www.coingecko.com/learn/what-are-centralized-crypto-exchanges-cex" target="_blank">centralized exchanges</a> on the Solana network. It is a limit-order decentralized swap on the network with an array of services for traders on the network. </p>
<p dir="ltr">Jupiter Swap features a DEX aggregator, which presents users with the best price offer from supported DEXs on the network. In addition to the direct asset swap feature, users can also place limit orders using Jupiter Swap, which helps users set a desired purchase price as seen on centralized exchanges. Jupiter Swap also features an asset bridge for moving assets between the Solana network and other supported blockchain networks. Jupiter also has a <a href="https://www.coingecko.com/learn/what-is-dollar-cost-averaging-dca-in-crypto" target="_blank">DCA </a>feature that helps users make purchases or sales in splits. Finally, Jupiter also features a decentralized perpetuals trading platform with up to 100x leverage.</p>
<p dir="ltr">Jupiter is one of the biggest decentralized applications on the Solana network. According to Jupiter, an average of $400 million worth of crypto assets traded on the platform daily by at least 90,000 unique wallets. </p>
<div dir="ltr"><img alt="Jupiter stats" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9213/content_unnamed_%2824%29.webp" style="width: 950px; height: 778px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: https://station.jup.ag/stats</span></div>
<h2 dir="ltr">Orca: Concentrated Liquidity AMM on the Solana Network</h2>
<div dir="ltr"><img alt="Orca Concentrated Liquidity AMM" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9212/content_orca.webp" style="width: 950px; height: 452px;"></div>
<p dir="ltr"><a href="https://v1.orca.so/" rel="nofollow noopener" target="_blank">Orca</a> claims to be the most efficient liquidity decentralized exchange on the Solana network that offers the best user experience. Through its concentrated liquidity feature, Whirlpools, Orca promises higher returns for liquidity providers while offering traders lower slippage across supported trading pools. </p>
<p dir="ltr">Orca’s Concentrated Liquidity <a href="https://www.coingecko.com/learn/what-is-an-automated-market-maker-amm" target="_blank">AMM</a> allows liquidity providers to state a price range at which their tokens will be available for use by the market maker – a similar feature to <a href="https://www.coingecko.com/learn/uniswap-vs-trader-joe" target="_blank">Uniswap V3’s concentrated liquidity</a>. Orca also incentivizes liquidity providers using a share of the trading fee generated on the platform. According to DefiLlama, the <a href="https://defillama.com/protocol/orca" rel="nofollow noopener" target="_blank">total value locked on the Orca DEX is about $185 Million</a>.</p>
<p dir="ltr">Orca is governed by its community via the Orca DAO which operates using the <a href="https://www.coingecko.com/en/coins/orca" target="_blank">ORCA</a> token and the DAO council. ORCA is also dedicated to philanthropy programs focused on the environment and developments around the project. ORCA is listed on Kucoin, Gate Exchanges, and Coinbase. See <a href="https://www.coingecko.com/en/coins/orca" target="_blank">active trading pairs for the ORCA token</a>.</p>
<h2 dir="ltr">Drift: Trade Perpetuals With up to 20X Leverage</h2>
<div dir="ltr"><img alt="Drift decentralized perpetuals" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9216/content_drift.webp" style="width: 950px; height: 452px;"></div>
<p dir="ltr"><a href="https://www.drift.trade/" rel="nofollow noopener" target="_blank">Drift</a> is a <a href="https://www.coingecko.com/learn/decentralized-derivatives-perpetual-future-dexs" target="_blank">decentralized perpetuals</a> trading platform on the Solana blockchain. Perpetual traders on Drift can open long or short positions with up to 20x leverage. Drift claims to deliver a CEX-like experience to perpetuals traders on its platform. Additional utilities on the platform include up to 5X leverage direct asset swap, leveraged <a href="https://www.coingecko.com/learn/what-is-spot-trading" target="_blank">spot trading</a>, and a decentralized lending service. The Drift lending protocol is a full-suite money market where users can borrow crypto assets against their collateral. </p>
<p dir="ltr">Drift also claims to offer users several passive income opportunities through staking and market maker rewards and rewards for liquidity providers. Drift’s staking program is known as Insurance Fund Staking. Users commit their assets to the Drift vault and earn commissions from exchange fees. According to statistics presented by the project, <a href="https://app.drift.trade/stats" rel="nofollow noopener" target="_blank">almost $120 million worth of crypto assets are locked on Drift’s smart contracts</a>. The platform has over 85,000 active users and has executed over $4 billion worth of trades.</p>
<h2 dir="ltr">Solend: Lend and Borrow Crypto Assets on the Solana Network</h2>
<div dir="ltr"><img alt="Solend lending protocol" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9214/content_solend.webp" style="width: 950px; height: 521px;"></div>
<p dir="ltr"><a href="https://solend.fi/dashboard" rel="nofollow noopener" target="_blank">Solend</a> is a money market on the Solana blockchain. According to the project, it aims to be the easiest to use and the most efficient solution on the network. Users on the network can <a href="https://www.coingecko.com/learn/what-are-crypto-loans-and-how-do-crypto-loans-work" target="_blank">borrow and lend crypto assets</a> on Solend. Borrowers present <a href="https://www.coingecko.com/learn/crypto-collateral-defi" target="_blank">collateral</a> and agree to the loan contract which includes paying a stated percentage interest to the lenders. Solend also features a <a href="https://www.coingecko.com/learn/defi-liquidation-crypto" target="_blank">liquidation</a> function that salvages bad loans and keeps the protocol running. According to DefiLlama, <a href="https://defillama.com/protocol/solend" rel="nofollow noopener" target="_blank">over $165 million worth of crypto assets are locked on Solend smart contracts</a> at the time of writing.</p>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/solend" target="_blank">Solend (SLND)</a> is the native token of the project. It is used to incentivize liquidity providers and fund development proposals by the community. Solend is managed by the community via the Solend DAO using the Solend token. SLND is listed on Gate exchange, CoinEX, and decentralized exchanges on the Solana network. See <a href="https://www.coingecko.com/en/coins/solend" target="_blank">active trading pairs for SLND</a>.</p>
<h2 dir="ltr">Marginfi: Solana-Based Lending Protocol With a Focus on Risk Management</h2>
<div dir="ltr"> <img alt="Margifi lending protocol" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9215/content_marginfi.webp" style="width: 950px; height: 438px;">
</div>
<p dir="ltr"><a href="https://app.marginfi.com/" rel="nofollow noopener" target="_blank">Marginfi</a> lets users borrow crypto assets against collateral. It is an overcollateralized money market on the Solana blockchain with over $345 million worth of cryptocurrencies locked in its smart contract. Marginfi works like every other lending protocol, however, it claims to have advanced risk management technologies that keep users informed of the status of their loan and also keep the protocol running. </p>
<p dir="ltr">It is equipped with an automatic liquidation protocol that rids the system of bad loans and keeps the whole protocol healthy. Marginfi also runs an ecosystem of utility applications that include the Marginfi xNFT, and the Marginfi liquidation prototype. These applications are powered by the Marginfi SDK. Users can also bridge assets between Solana and other supported blockchain networks using Marginfi’s bridge powered by Mayan, and can enjoy swaps powered by Jupiter.</p>
<p dir="ltr">Marginfi offers liquid staking services as well. According to the project, staking under its validator offers certain benefits including increased rewards and zero staking fees in addition to improved staking yield.</p>
<p dir="ltr">The protocol has also introduced mrgn points, which reflect the level of a user’s engagement with Marginfi. Users can earn points by interacting with the protocol, and this can potentially lead to an <a href="https://www.coingecko.com/learn/new-crypto-airdrop-rewards" target="_blank">airdrop opportunity</a>. </p>
<h2 dir="ltr">Kamino: Liquidity Layer and Lending Protocol on Solana</h2>
<div dir="ltr"><img alt="Kamino Liquidity Layer" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9219/content_kamino.webp" style="width: 950px; height: 423px;"></div>
<p dir="ltr"><a href="https://app.kamino.finance/" rel="nofollow noopener" target="_blank">Kamino</a> is an automated liquidity solution on Solana. It provides users with a platform to deploy their tokens into yield-bearing programs through liquidity pools. Users provide liquidity across supported pairs and receive Ktokens – a representation of their tokens held in the pool. Pooled tokens are deployed on DEXs and users’ yields are reflected in the Ktoken.</p>
<p dir="ltr">Ktokens can be used as collateral in Kamino’s lending protocol. The lending protocol enables users to borrow crypto assets against their collateral. The lending protocol works similarly to other decentralized lending protocols but uses the CLMM (Concentrated Liquidity Market Maker) to control the availability of assets in the lending vault. According to data from DefiLlama, the <a href="https://defillama.com/protocol/kamino" rel="nofollow noopener" target="_blank">total value locked on Kamino is over $242 million</a> at the time of writing.</p>
<h2 dir="ltr">Marinade Finance: Staking Optimization Protocol on the Solana Blockchain</h2>
<div dir="ltr"><img alt="Marinade Finance Staking" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9217/content_marinade.webp" style="width: 950px; height: 398px;"></div>
<p dir="ltr"><a href="https://marinade.finance/" rel="nofollow noopener" target="_blank">Marinade Finance</a> claims to maximize returns for stakers on the Solana network. It commoditizes staked assets, making them more flexible and utilizing this flexibility to pursue higher yields for stakers. According to the project, it screens over 100 validators on the Solana network and routes staked assets across the best-yielding validator. </p>
<p dir="ltr">It pursues real yield for Solana native stickers through <a href="https://www.coingecko.com/learn/what-is-liquid-staking-liquid-staked-derivatives-you-need-to-know" target="_blank">liquid staking</a>. Liquid-staked Solana on Marinade Finance is known as marinated Solana (mSol). In the future, when <a href="https://www.coingecko.com/learn/what-is-restaking-crypto" target="_blank">restaking</a> protocol Picasso launches, mSol holders can commit their LST to Picasso to gain more yield. </p>
<p dir="ltr">Marinade Finance allows users to unstake instantly and claim their rewards without needing to wait. Marinade Finance’s staking protocol is integrated into several other projects like Coinbase, Orca, and native wallets. Users can access these services from the supported platforms and protocols. According to DefiLlama, <a href="https://defillama.com/protocol/marinade-finance" rel="nofollow noopener" target="_blank">Over $1 billion worth of crypto assets are locked on Marinade Finance’s smart contracts</a>.</p>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/marinade" target="_blank">Marinade (MNDE)</a> is the native token of the platform. It is used as a utility, incentive, and <a href="https://www.coingecko.com/learn/governance-tokens" target="_blank">governance token</a> of the platform. MNDE holders make up the Marinade DAO and are qualified to vote on development and marketing proposals. MNDE can be traded on Solana-based DEXs and centralized exchanges like Coinbase and Kucoin. See <a href="https://www.coingecko.com/en/coins/marinade" target="_blank">active trading pairs for MNDE</a>.</p>
<h2 dir="ltr">Jito: Enhancing Staking Yield via MEV</h2>
<div dir="ltr"><img alt="Jito liquid staking" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9218/content_jito.webp" style="width: 950px; height: 392px;"></div>
<p dir="ltr"><a href="https://www.jito.network/" rel="nofollow noopener" target="_blank">Jito</a> claims to improve yield earned by stakers via MEV rewards, while minimizing negative externalities. <a href="https://www.coingecko.com/learn/the-beginner-s-guide-to-mev" target="_blank">MEV (Maximum Extractable Value)</a> is the highest extra charge a validator can apply to transactions or a user can extract from a DeFi protocol. MEV is a measure of profitability. Jito claims to extract more value from DeFi protocols on the Solana blockchain and distribute these rewards amongst stakers on its platform. </p>
<p dir="ltr">Jito also offers liquid-staking services, liquid-staked Solana on Jito protocol is known as Jito Sol (jitoSOL) and, like Marinade’s mSol, can be committed to restaking protocols when available. Jito claims to utilize the staked assets in achieving a secure network for the Solana blockchain and <a href="https://www.coingecko.com/learn/real-yield-defi" target="_blank">real yield</a> for the stakers. jitoSol can also be used across supported liquidity and DeFi protocols. According to available data, about 6.7 million SOL are staked on Jito by over 135,000 holders</p>
<p dir="ltr">Jito protocol is controlled by the Jito DAO. Holders of the <a href="https://www.coingecko.com/en/coins/jito" target="_blank">Jito token (JTO)</a> vote on improvement proposals for the protocol. Jito is also used as an incentive for liquidity providers on Jito and jitoSOL pairs. Jito can be traded on Binance, Coinbase, and decentralized exchanges on the Solana network. See <a href="https://www.coingecko.com/en/coins/jito" target="_blank">active trading pairs for Jito</a>.</p>
<h2 dir="ltr">Mad Lads: xNFT Collection on Solana </h2>
<div dir="ltr"><img alt="Mad Lads on Magic Eden" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9248/content_Mad_Lads.webp" style="width: 950px; height: 618px;"></div>
<p dir="ltr">The <a href="https://www.coingecko.com/learn/mad-lads-nfts-xnft" target="_blank">Mad Lads NFT</a> collection was created by Coral, a Solana framework development company. It is a collection of 10,000 unique artwork featuring humanoid characters with specific attributes and rarity. About 9,966 Mad Lads have been minted and are held by over 4,200 NFT collectors on the network. Each piece of art in the collection has a unique identity; the rarity attributes apply to the character’s gender, clothing, facial expression, type, and hair, amongst other attributes. </p>
<p dir="ltr">Mad Lads NFTs are xNFTs, which means they are NFTs with an embedded code script that can be executed by an application that supports them, like the <a href="https://www.coingecko.com/learn/top-solana-wallets" target="_blank">Backpack wallet</a>, which is also developed by Coral. For example, the programmable nature of xNFTs means that users don’t need to access third-party platforms to stake Mad Lads NFTs; instead the feature is integrated into the asset, and can be staked directly from the Backpack wallet.</p>
<p dir="ltr">In December 2023, Mad Lads NFTs recorded a new ATH in floor price at over 229 SOL. Based on the value of SOL at that time, this is well over $20,000. Mad Lads NFTs can be traded on Solana NFT marketplaces.</p>
<h2 dir="ltr">Tensorians: NFT Collection for Fans of Tensor</h2>
<div dir="ltr"><img alt="Tensorians NFT" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9222/content_tensorians.webp" style="width: 950px; height: 436px;"></div>
<p dir="ltr">Tensorians <a href="https://www.tensorians.com/about" rel="nofollow noopener" target="_blank">commemorates NFT traders on Tensor</a> – an NFT marketplace on the Solana blockchain. Tensor claims to add flare to NFT trading via features like a collection’s trading history and real-time trading activity. According to the project, Tensorians are the most dedicated fans of the project. 10,000 NFT arts make up the Tensorians collection. Holders are eligible for certain perks including exclusive drops. According to data from CoinGecko, the <a href="https://www.coingecko.com/en/nft/tensorians" target="_blank">floor price of the Tensorians collection is 96 Sol</a> at the time of writing. Tensorians can be traded on Solana NFT marketplaces including <a href="https://www.tensor.trade/trade/tensorians" rel="nofollow noopener" target="_blank">Tensor</a>.</p>
<h2 dir="ltr">Helium: Decentralized Connectivity Service Provider</h2>
<div dir="ltr"><img alt="Helium DePIN" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9220/content_helium_%282%29.webp" style="width: 950px; height: 336px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-helium-hnt" target="_blank">Helium</a> migrated to the Solana blockchain in April 2023. The <a href="https://www.coingecko.com/learn/depin-crypto-decentralized-physical-infrastructure-networks" target="_blank">decentralized physical infrastrucutre (DePIN)</a> project hopes to change the way people use and commoditize Internet services. Helium allows people to run their own hotspot services; it plans to use the Solana blockchain as a remittance and administrational platform for its internet services. Helium manages the security and record-keeping aspect of the decentralized internet facility while hotspot owners focus on sharing their internet resources and receiving rewards, relative to the connectivity services provided.</p>
<p dir="ltr">Helium operates a multi-token system with each token in the ecosystem serving a purpose in the provision of network resources and rewarding providers. Hotspot owners are incentivized with <a href="https://www.coingecko.com/en/coins/helium" target="_blank">Helium tokens (HNT)</a>, and HNT is burnt by users to obtain connectivity services. Meanwhile the MOBILE token powers the recently launched <a href="https://www.helium.com/5G" rel="nofollow noopener" target="_blank">Helium 5G project</a>, where 5G Hotspot bundle owners provide network coverage and earn the MOBILE token. Both tokens are tradable on decentralized exchanges in the Solana ecosystem. See active trading pairs for <a href="https://www.coingecko.com/en/coins/helium#markets" target="_blank">HNT</a> and <a href="https://www.coingecko.com/en/coins/helium-mobile" target="_blank">MOBILE</a>.</p>
<h2 dir="ltr">Render Network: GPU Rendering Protocol for Creators</h2>
<p dir="ltr">In December 2023, Render Network announced plans to expand its services to the Solana blockchain. <a href="https://rendertoken.com/" rel="nofollow noopener" target="_blank">Render Network</a> is used to rent out excess GPU power to creators in need of additional GPU to render graphics. Render Network hopes to enable creators to deliver high-resolution graphics. Artists or other content creators can rent GPUs from miners who have excess and idle GPUs. Using the Proof of Render algorithm (a variant of the Proof of Work algorithm), artists can confirm that payment for their art has been made before they release/upload their art or content.</p>
<p dir="ltr">Render Network is powered by the <a href="https://www.coingecko.com/en/coins/render" target="_blank">Render token (RNDR)</a>. RNDR is used as the remittance token on the network, service providers earn RNDR rewards. Artists on the Render Network can trade RNDR in exchange for GPU power from node operators. Render token also powers the Render DAO and is used to fund development proposals. RNDR is listed on Binance, Kucoin, Coinbase, and other centralized exchanges. See <a href="https://www.coingecko.com/en/coins/render#markets" target="_blank">active trading pairs for Render token</a>.</p>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">Solana is a force in the smart contract blockchain space and is growing exponentially. Recent growth in usage data is a testimony of investors’ recognition of the utilities and advantages the network holds. The Solana token has climbed to the top 5 ranks following an impressive price discovery. Projects in its ecosystem will hope to grow in light of the project’s popularity while deploying their solutions on the network, which it claims to offer a competitive throughput.</p>
<p dir="ltr">In this article, we explored a few projects in the Solana ecosystem. These projects hope to strengthen the appeal of the Solana network by delivering quality products to users. Note that this list is not exhaustive of projects on the Solana network, nor is it a hierarchical presentation. This article only discusses projects in the Solana ecosystem and is not financial advice or endorsement for users to invest in these projects. Always do your own research before connecting your wallet to any protocol. </p>
Joel Agbohttps://www.coingecko.com/learn/top-solana-projects
What Are the Top Projects to Watch on Solana in 2024?
DEXs: Jupiter, Orca and Drift
Lending protocols: Solend, Marginfi and Kamino
Staking: Marinade Finance and Jito
NFTs: Mad L...tag:www.coingecko.com,2005:Post/12112024-01-24T12:00:00Z2024-01-25T07:08:27ZBitcoin Technical Analysis on Google Sheets (Beginner's Guide)<p dir="ltr">Technical analysis is a method used in financial markets to predict future price movements of assets by analyzing historical market data. It focuses on price and volume patterns, and operates on the assumption that the price reflects all available information, moves in trends and tends to repeat historical patterns.</p>
<p>In today’s guide, we’ll cover:</p>
<ul dir="ltr">
<li role="presentation">How to import historical Bitcoin price data into Google Sheets with an API</li>
<li role="presentation">How to import historical Bitcoin price data into Google Sheets with a CSV</li>
<li role="presentation">How to perform a technical analysis on Bitcoin, to develop a Bitcoin price prediction for the upcoming halving</li>
</ul>
<p dir="ltr">With much ground to cover, let’s jump right in!</p>
<hr>
<h2 dir="ltr">How to Import Bitcoin Historical Prices into Google Sheets (with an API)</h2>
<p dir="ltr">Follow these steps to import historical Bitcoin price into Google Sheets:</p>
<ol dir="ltr">
<li role="presentation">Install an API connector on Google Sheets.</li>
<li role="presentation">Generate your CoinGecko API key.</li>
<li role="presentation">Input your request URL and API key into the API connector.</li>
<li role="presentation">Run the query and organize the data.</li>
<li role="presentation">Set up a refresh schedule or manually refresh to update the data.</li>
</ol>
<p dir="ltr"><em>Note: You will require a <a href="https://www.coingecko.com/en/api/pricing?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">paid CoinGecko API plan</a> to import more than one year of historical price data.</em></p>
<p dir="ltr"><em><img alt="How to do a bitcoin technical analysis on google sheets guide" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9250/content_Bitcoin_Technical_Analysis_Gsheets_-_Bitcoin_Price_API_Guide_%281%29.webp" style="width: 1200px; height: 597px;"></em></p>
<p dir="ltr">For this tutorial, we’ll be using the API connector by Mixed Analytics. After installing the API connector add-on on Google Workspace Marketplace, run the extension from Google Sheets > <strong>Extensions</strong>.</p>
<p dir="ltr">Create a request to import data accordingly.</p>
<p dir="ltr"><img alt="Bitcoin price API - import real-time and historical price data into gsheets | CoinGecko" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9249/content_API_Connector.webp" style="width: 447px; height: 234px;"></p>
<p>Navigate to the <strong>/coins/{id}/market_chart </strong>endpoint on <a href="https://www.coingecko.com/en/api/documentation?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">CoinGecko API’s documentation</a>. Fill in the parameters accordingly to derive the request URL.</p>
<ul dir="ltr">
<li role="presentation">
<strong>id:</strong> bitcoin</li>
<li role="presentation">
<strong>vs_currency:</strong> usd</li>
<li role="presentation">
<strong>days:</strong> max</li>
<li role="presentation">
<strong>interval: </strong>daily</li>
<li role="presentation">
<strong>precision:</strong> full</li>
</ul>
<p dir="ltr"><img alt="pull crypto price into google sheets - market cap, trading volume, crypto price" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9224/content_2.webp" style="height: 1236px; width: 1200px;"></p>
<p dir="ltr">Since we’ll be calling the pro API, change the root URL to <strong><code>https://pro-api.coingecko.com/api/v3</code></strong>. The full request URL now appears as such:</p>
<p dir="ltr"><code><a href="https://pro-api.coingecko.com/api/v3/coins/bitcoin/market_chart?vs_currency=usd&days=max&interval=daily&precision=full">https://pro-api.coingecko.com/api/v3/coins/bitcoin/market_chart?vs_currency=usd&days=max&interval=daily&precision=full</a></code></p>
<p dir="ltr">Feed this request URL back into the API connector. Under ‘<strong>Headers</strong>’, fill in the following:</p>
<ul dir="ltr">
<li role="presentation">
<strong>Key: </strong>x-cg-pro-api-key</li>
<li role="presentation">
<strong>Value: </strong>Your API key (i.e. CG-XXXXXXXXXXXXXXXXXXXXXXXX)</li>
</ul>
<p dir="ltr"><img alt="Get historical BTC price in Gsheets using an API Connector" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9225/content_3.webp"></p>
<p>Next, select ‘<strong>Output options</strong>’ to expand the settings, and update the report style to ‘compact’. </p>
<p dir="ltr"><img alt="Compact report style under Output mode" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9226/content_4_compact.webp"></p>
<p dir="ltr">Run the query and you’ll see <a href="https://www.coingecko.com/en/coins/bitcoin?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">Bitcoin (BTC)</a> historical price data imported into Google Sheets, in the following format:</p>
<p dir="ltr"><img alt="Bitcoin price historical data since 2013 in gsheets" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9227/content_5.webp" style="height: 701px; width: 1200px;"></p>
<p>Each cell under<strong> prices</strong>, <strong>market_caps</strong> and <strong>total_volumes</strong> contain nested data within the ‘<strong>[ ]</strong>’ brackets. The first value within the bracket displays the Unix time for that corresponding price, market cap and trading volume. The second value within the bracket shows the Bitcoin price, market cap and trading volume for that corresponding Unix time.</p>
<p dir="ltr">To convert Unix to a human-readable date, we’ll first split the cell values for row A (prices) by applying the following formula in cell F2.</p>
<p dir="ltr"><code>=SPLIT(SUBSTITUTE(SUBSTITUTE($A2,"[",""),"]",""), ",")</code></p>
<p dir="ltr">Repeat the following for rows B (<strong>market_caps</strong>) and C (<strong>total_volumes</strong>), applying the formula for all cells in the column.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9228/content_6.webp" style="height: 514px; width: 1200px;"></p>
<p dir="ltr">To convert Unix time to a human-readable date, we’ll apply the formula <code>=EPOCHTODATE().</code></p>
<p dir="ltr">From the screenshot below, we can see that the date for the first Bitcoin price and market data is captured on April 28, 2013 at 0:00:00 UTC.</p>
<p dir="ltr"><img alt="Use the EPOCHTODATE formula to convert Unix time to a human readable format" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9229/content_7.webp" style="height: 210px; width: 1200px;"></p>
<p dir="ltr">Similarly, apply the <tt>EPOCHTODATE() </tt>formula on all cells in column E, to convert Unix time for the imported data.</p>
<p dir="ltr">Since the corresponding Unix time is the same across Price, Market Cap and Volume, we can hide the subsequent repeated columns.</p>
<p dir="ltr">Finally, we have an organized data set for historical Bitcoin (BTC) price in Google Sheets.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9230/content_8.webp" style="height: 760px; width: 1200px;"></p>
<div style="background:#eeeeee;border:1px solid #cccccc;padding:5px 10px;"><em><strong>💡Pro-tip: </strong>Having this integration in place allows us to append new historical price data for Bitcoin as days pass, by simply running the query. Additionally, you may set up a refresh schedule on the paid API Connector subscription or manually refresh the query.<br>
<br>
CoinGecko users can enjoy a 30% off lifetime MixedAnalytics subscription by applying the code "COINGECKO" when <a href="https://mixedanalytics.com/api-connector-pricing-special/">installing the integration</a>.</em></div>
<p dir="ltr">You may also look to duplicate this integration for other cryptocurrencies for technical analysis.<br>
<br>
We’ll now look at another way to import historical Bitcoin price data into Google Sheets. </p>
<hr>
<h2 dir="ltr">How to Import Bitcoin Historical Prices Data into Google Sheets (with a CSV)</h2>
<p dir="ltr">We can retrieve Bitcoin historical price data in Google Sheets through a CSV exported from CoinGecko’s <a href="https://www.coingecko.com/en/coins/bitcoin?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">Bitcoin</a> page.</p>
<p dir="ltr">We can access the Bitcoin price page on CoinGecko by clicking on ‘Cryptocurrencies’ from the CoinGecko home page. From there, Bitcoin (BTC) will appear as the top line item when the list of cryptocurrencies are sorted by market cap.</p>
<p dir="ltr"><img alt="Coingecko homepage - cryptocurrency price tracker" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9244/content_Screenshot_2024-01-25_at_12.07.34%E2%80%AFPM.webp" style="height: 664px; width: 1200px;"></p>
<p>Once you’re on the Bitcoin page, select “<strong>Historical data</strong>” to view all historical data points for Bitcoin.</p>
<p dir="ltr"><img alt="Historical btc price on CoinGecko.com" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9231/content_9_-_BTC_page__select_historical_data.webp" style="height: 891px; width: 1200px;"></p>
<p dir="ltr">From the Bitcoin historical data page, select the calendar icon at the top right and input your preferred time coverage. Once the data refreshes, tap on the ‘<strong>download</strong>’ icon next to it to export the historical BTC price data in either the .xls or .csv format.</p>
<p dir="ltr"><img alt="CSV export historical price data based on your preferred timeframe" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9232/content_10.webp" style="height: 815px; width: 1200px;"><br>
Create a new Google Sheet, select ‘<strong>File</strong>’, ‘<strong>Import</strong>’, and find your .csv file. With that, we have BTC historical data accessible in Google Sheets.</p>
<hr>
<h2 dir="ltr">Conducting a Technical Analysis with Historical Crypto Price Data</h2>
<p dir="ltr"><strong>When conducting technical analysis, specifically chart analysis, the first thing we need to consider is the time frame. </strong>We need to zoom out in order to comprehend, for example, what occurs in daily time frames to make predictions in hourly time frames, or monthly time frames for weekly time frames, etc. Off this understanding, we can create an investment thesis that 'invalidates' our perception.</p>
<p dir="ltr">For example, if we think a breakout is going to occur, where the price of a cryptocurrency is going to surpass a former level of resistance, ‘invalidating’ our thesis would be when the price closes below a level X, as opposed to consecutively higher closes. Alternatively, we can form time-based invalidations, suggesting that the price should consecutively close above X to suggest a breakout.</p>
<p dir="ltr"><strong>To substantiate these perceptions, we need to identify levels of support and resistance. </strong>Resistance levels are prices that the asset struggles to surpass, and support are price levels the asset struggles to drop below. Identifiers of significant price levels that can help us isolate support/resistance include the bottom of a dump, the peak of a rally, an area of recurring tests, and consolidations (sideways movements) between impulsive moves (this <a href="https://www.coingecko.com/learn/elliott-wave-theory?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">Elliott Wave article</a> deep dives into graph terminology).</p>
<p dir="ltr">In the process of identifying levels of support and resistance, we’ll again review data at a higher time frame (i.e. monthly/weekly/daily) to make inferences for lower time frames (daily/intraday). From this, we are looking for confluence, which are significant price points that occur on a multi-timeframe level.</p>
<hr>
<h2 dir="ltr">How to Perform a Technical Analysis of Bitcoin</h2>
<p dir="ltr">We can perform a technical analysis of Bitcoin by identifying support and resistance levels, using historical price data on Google Sheets.</p>
<p dir="ltr">To conduct a Bitcoin price prediction for April 2024, let’s first go back in time to assess trends during the first Bitcoin halving, which occurred on July 9, 2016.</p>
<p dir="ltr">We’ll start by creating three separate graphs with the data imported earlier:</p>
<ol dir="ltr">
<li role="presentation">Monthly price data for 2016</li>
<li role="presentation">Weekly price data for 2016</li>
<li role="presentation">Daily price data for 2016</li>
</ol>
<p dir="ltr">We will need to splice our imputed '<strong>date</strong>' column to a numeric form, for us to calculate the monthly and weekly prices. As we are only concerned with 2016, we will start at cell A978, which is 01/01/2016.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9236/content_Screenshot_2024-01-02_at_3.10.44%E2%80%AFPM.webp" style="height: 700px; width: 1200px;"></p>
<p dir="ltr">With the formula:</p>
<p dir="ltr"><code> =DATE(VALUE(LEFT(A978,4)), VALUE(MID(A978,6,2)), VALUE(MID(A978,9,2)))</code></p>
<p dir="ltr">We can separate the time values into excel-readable formatting. Then we can calculate the weekly and monthly price data with the following formula, starting in cells G978 and H978 as shown above:</p>
<ul dir="ltr">
<li role="presentation"><code>=IFERROR(AVERAGEIFS($B$971:$B$1344, $F$971:$F$1344, "<="&F978, $F$971:$F$1344, ">"&F978-7), "No Data")</code></li>
<li role="presentation"><code>=IFERROR(AVERAGEIFS($B$971:$B$1344, $F$971:$F$1344, "<="&F978, $F$971:$F$1344, ">"&F978-31), "No Data")</code></li>
</ul>
<p dir="ltr">For this, ensure you have created proper 'date' values for the 31 days prior to January 1, 2016 (01/01/2016).</p>
<p dir="ltr">The <code>IFERROR</code> statement is for pre-emptive error handling, in case we had insufficient data to calculate weekly/monthly averages. The <code>AVERAGEIFS</code> statement allows us to calculate moving averages, conditional to the size of our intervals (i.e. weekly and monthly). From there, we can simply input a line graph for both sets of data. </p>
<p><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9237/content_Screenshot_2024-01-02_at_2.55.14%E2%80%AFPM.webp"></p>
<p><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9238/content_Screenshot_2024-01-02_at_3.13.08%E2%80%AFPM.webp"></p>
<p dir="ltr">The graphs look progressively more “smoothed” with each higher frequency, which is expected. Nevertheless, on a higher time frame we can note the Bitcoin Halving on July 9, 2016 (07/09/16) and a sustained period of consolidation around this date. If we mark this period, which is equally as prevalent on the weekly time frame, we can notice a period of resistance on the yearly and daily time frame, as shown in the daily time frame below:</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9239/content_Screenshot_2024-01-02_at_2.18.38%E2%80%AFPM.webp"></p>
<p>The level 675 is tested on three occasions both before and after the Bitcoin Halving date, as depicted above. As we have marked this on higher time frames as well, we can consult this as a level of resistance. Returning to our Google Sheet, we can notice this price level is not tested again after July 19, 2016 (19/07/2016) until October 26, 2016 (26/10/2016), marking a three and a half-month gap. On a weekly price level it is first tested on July 6, 2016 (06/07/2016) and then again on October 30, 2016 (30/10/2016). Coincidingly, it is tested at a monthly level on July 12, 2016 (12/07/2016) and then not until November 11, 2016 (11/11/2016).</p>
<p dir="ltr">The recurring tests make the level weaker as the supply and demand at that price becomes weaker with each test. Additionally, as this level is availed by a higher time frame as well, we can assume a bigger move was going to ensue. This signals the integral importance of time frames for chart analysis. </p>
<p dir="ltr">We can employ various <a href="https://www.coingecko.com/learn/popular-crypto-trading-strategies-backtesting?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">technical indicators</a> for our technical analysis. For this guide, we will be utilizing the <a href="https://www.coingecko.com/learn/relative-strength-index-rsi?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">Relative Strength Index (RSI)</a>. To fractionise its components, the RSI is calculated as follows:</p>
<p dir="ltr"><code>RSI = 100- [100/(1+RS)]</code></p>
<p dir="ltr">Where RS = average gain over 14-periods/ average loss over 14-periods</p>
<p>When creating RSI for our data it may look scattered and disorderly, but once we break down its intricacies, it's not as difficult as it may seem. To graph this technical indicator, we are going to make 7 new columns: Price change, Gain, Loss, Average Gain, Average Loss, RS, RSI. The formulas for each are:</p>
<ul dir="ltr">
<li role="presentation">Price Change<code> =B978-B977</code>
</li>
<li role="presentation">Gain <code>=IF(K978>0, K978, 0)</code>
</li>
<li role="presentation">Loss <code>=IF(K978<0, -K978, 0)</code>
</li>
<li role="presentation">Average Gain <code>=AVERAGE(L965:L978)</code>
</li>
<li role="presentation">Average Loss<code> =AVERAGE(M965:M978)</code>
</li>
<li role="presentation">RS = Average Gain/ Average Loss <code>= N978/O978</code>
</li>
<li role="presentation">RSI = <code>100 - ((100 / (1 + P978)))</code>
</li>
</ul>
<p dir="ltr">After these are created, we can plot our RSI indicator. Although appearing untidy and erratic, we can simplify the indicator by plotting three lines, one each at 50, 70 and 30. This is due to the consideration of an asset being overbought when the RSI is greater than 70, oversold when it is less than 30, and the significance of midpoint value crosses.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9240/content_Screenshot_2024-01-02_at_3.57.01%E2%80%AFPM.webp"></p>
<p dir="ltr">A midpoint value cross can indicate whether there is a bullish or bearish bias in a trend. While judged mostly by perception, the amount of time the RSI spends above the 50 level can be an indication of a bullish bias, and the opposite applies if the bears are in control. This level also serves to indicate if a trend reversal will occur. If we treat the 50 line like a dynamic support/resistance level that switches from one to another when the line is crossed, a trend reversal can occur when the line fails to act as a support/resistance (i.e. crosses).</p>
<p dir="ltr">Similarly, to our earlier analysis (wherein we highlighted a period of consolidation) we can also indicate periods of consolidation when the RSI is chopping through the midpoint continuously, which suggests an expansion is to follow. . This aligns with the graph above, as during the <a href="https://www.coingecko.com/en/coins/bitcoin/bitcoin-halving?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">Bitcoin Halving</a>, which we identified in our daily, weekly, and yearly price charts, there is also a period of consolidation in the RSI chart, suggesting an expansion would follow – which it did.</p>
<hr>
<h2 dir="ltr">Bitcoin Price Prediction in 2024</h2>
<p dir="ltr">Let’s create a price prediction using the previously outlined methods for the Bitcoin Halving slated in April 2024. First, we construct a graph of the BTC price for the past year, using our data on Google Sheets. From the graph, we can observe the two noticeable periods of consolidation that were tested on multiple occasions, before the breakout that occurred (orange arrow), leading to another period of consolidation. To properly formulate an opinion let’s now “zoom in” to the recent period of consolidation.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9241/content_Screenshot_2024-01-02_at_8.34.37%E2%80%AFPM.webp"></p>
<p dir="ltr">Zooming in on the past 2 months, which includes the period highlighted in the above graph, we can notice 3 tests of the Bitcoin price resistance level at $44,000. Following the last test we have had a sustained period of sideways price movements, as shown below. The recurring tests suggest a weakening resistance level. This bodes well for a breakout after the upcoming halving, but it will also depend on the demand for Bitcoin at the time. </p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9242/content_Screenshot_2024-01-02_at_8.34.44%E2%80%AFPM.webp"></p>
<p dir="ltr">Lastly, we can coincide our price analysis with a check of the RSI for the past 2 months. The recent discernible downwards trend in the RSI from October 12, 2023 (10/12/23) to December 19, 2023 (19/12/23) that carried it below the midpoint value suggests sellers were waking up and long positions were closing. However, the persistence of the RSI above the midpoint for the past 3 months indicates a bearish bias, which may coincide with many being hopeful of a price rally following the upcoming halving. This would align with our previous analysis, spotting a recurring test of $44,000.</p>
<p dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9243/content_Screenshot_2024-01-02_at_8.46.36%E2%80%AFPM.webp"></p>
<hr>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">Leveraging a crypto data API like <a href="https://www.coingecko.com/en/api?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">CoinGecko API</a> to import historical price data into Google Sheets proves to be valuable and convenient, especially once the initial setup is complete. This method offers a seamless approach to accessing and analyzing market information, allowing for automated data refreshes instead of having to manually export and import crypto data into Google Sheets. This can help to streamline the technical analysis process.</p>
<p dir="ltr"><a href="https://www.coingecko.com/en/api/pricing/?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank"><img alt="Comprehensive and reliable crypto data API with wide coin and exchange coverage" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9246/content_CoinGecko_Sign_Up_CTA_%284%29.webp" style="width: 1200px; height: 575px;"></a></p>
<p dir="ltr">When conducting technical analysis, zoom out! You can always view an obscure technical indicator or chart pattern, assuming it will give you new insight, but the value of establishing confluence on multiple time frames is just as useful, if not more. After creating an overall thesis and understanding what a market is doing then you can zoom in and create a more specialized opinion. </p>
<p dir="ltr">By trimming the original data set to identify trends around past Bitcoin halvings, we are able to construct an investment thesis for the upcoming Bitcoin halving in April 2024, demonstrating a tangible application of the discussed technical analysis techniques. By incorporating these insights and understanding the levels of support and resistance, traders and investors can enhance their ability to make well-informed decisions in the dynamic world of cryptocurrency trading.</p>
<p dir="ltr"><em>Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or endorsement of any specific trading strategy. Readers are encouraged to conduct their own research before making any financial decisions.</em></p>
<hr>
<p>Looking for more resources? Learn how to leverage other CoinGecko API endpoints to <a href="https://www.coingecko.com/learn/import-crypto-prices-google-sheets?utm_campaign=learn&utm_content=bitcoin-technical-analysis-google-sheets" target="_blank">import live crypto prices</a> into Google Sheets.</p>
Jackson Henninghttps://www.coingecko.com/learn/bitcoin-technical-analysis-google-sheetsTechnical analysis is a method used in financial markets to predict future price movements of assets by analyzing historical market data. It focuses on price and volume patterns, and operates on th...tag:www.coingecko.com,2005:Post/12092024-01-23T12:00:39Z2024-01-24T09:05:56ZWhat Are SRC-20 Tokens and Stamps on Bitcoin?<p><meta charset="utf-8"></p>
<h2 dir="ltr">What Are SRC-20 Tokens?</h2>
<p dir="ltr">SRC-20 tokens are tokens on the Bitcoin blockchain. They store data using UTXO, which ensures permanent Bitcoin storage that cannot be pruned.</p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">The SRC-20 token standard is used to issue fungible tokens on the Bitcoin blockchain by attaching data to Bitcoin. The SRC-20 standard is likened to the ERC-20 standard on the Ethereum blockchain and even closer to the BRC-20 token standard on the Bitcoin blockchain.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Bitcoin ordinals and Bitcoin Stamps are associated with BRC-20 and SRC-20 tokens respectively. Both technologies allow expanded use cases for the Bitcoin network although they share a few differences in how they work.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Bitcoin Stamps technology works by inscribing data on UTXO Bitcoin, developers leverage this to create tokens according to the SRC-20 and SRC-721 (Stamps) standards.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">This article discusses the Bitcoin STAMPS protocol and SRC-20 token standard, how they work, what it means for the Bitcoin blockchain, and how they compare to similar token standards and technologies.</p>
</li>
</ul>
<hr>
<div dir="ltr"><img alt="What are Bitcoin Stamps SRC-20" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9201/content_What_are_Bitcoin_Stamps_SRC-20.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr">According to data obtained from <a href="https://www.stampscan.xyz/trade" rel="nofollow noopener" target="_blank">Stampscan, an SRC-20 token tracker</a>, the cumulative market cap of SRC-20 tokens is in excess of $100 million at the time of writing. About 60% of this figure is contributed by STAMP and KEVIN, two of the earliest SRC-20 tokens. </p>
<p dir="ltr">For ease of reference, within this article, we will use SRC-20 to refer to tokens created using Bitcoin Stamps, and Stamps to refer to Stamp mints containing images and video (or NFTs).</p>
<p dir="ltr">The Bitcoin Stamps technology and SRC-20 tokens are extending possibilities on the Bitcoin blockchain. We take a look at what they really are;</p>
<h2 dir="ltr">Understanding SRC-20 Tokens</h2>
<p dir="ltr">In short, SRC-20 tokens are tokens on the Bitcoin blockchain. However, they are not exactly like the relatively more popular ERC-20 tokens. The SRC-20 token standard is powered by Bitcoin Stamps, which were originally conceived as a way to mint permanent Bitcoin NFTs. Stamps store data using <a href="https://www.coingecko.com/en/glossary/unspent-transaction-output" target="_blank">UTXO (Unspent Transaction Output)</a>, which ensures permanent blockchain storage that can’t be pruned. </p>
<p dir="ltr">Stamps are data inscriptions on the Bitcoin blockchain that enable the creation of tokens that can be spent like any other crypto asset. SRC-20 tokens run parallel with the native Bitcoin coin on the Bitcoin network and fees for transactions involving SRC-20 tokens are paid in Bitcoin. Essentially, the SRC-20 token standard’s basic operation is similar to that of <a href="https://www.coingecko.com/learn/brc-20-tokens" target="_blank">BRC-20 tokens</a>, although they store data on the Bitcoin blockchain in different ways. </p>
<p dir="ltr">Here’s how SRC-20 tokens are created.</p>
<h2 dir="ltr">How Are SRC-20 Tokens and Stamps Created?</h2>
<p dir="ltr">As Bitcoin Stamps were originally designed to create permanent Bitcoin NFTs, Bitcoin Stamps transforms images to the Base64 format. The Base64 format allows the images to be presented as a string of characters. The strings are added to a Bitcoin transaction as part of the transaction description and broadcasted to the network. </p>
<p dir="ltr">The good news is that with the rise in popularity of Stamps, users can easily mint Bitcoin Stamps on platforms like <a href="https://www.stampverse.io/" rel="nofollow noopener" target="_blank">Stampverse</a>, <a href="https://www.rarestamp.xyz/0" rel="nofollow noopener" target="_blank">Rarestamp</a>, and <a href="https://assetic.io/" rel="nofollow noopener" target="_blank">Assetic</a>, where users only need to upload the image and connect a supported wallet.</p>
<div dir="ltr"><img alt="Creating Bitcoin Stamps" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9194/content_unnamed_%2822%29.webp" style="width: 950px; height: 531px;"></div>
<p dir="ltr">Creating fungible SRC-20 tokens originally required <a href="https://counterparty.io/" rel="nofollow noopener" target="_blank">Counterparty</a> (broadcasting SRC-20 transaction), however, according to the protocol’s creator, anyone creating a STAMP can now interact directly with the Bitcoin blockchain.<br>
</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">As of block-height 796,000, SRC-20 tokens stopped using Counterparty numeric assets and, instead, utilize the blockchain in a more direct manner.<br>
<br>
By removing Counterparty headers in conjunction with new compression techniques, SRC-20s are now smaller in bytes and cheaper to use. <a href="https://t.co/H8A4X9xDfd">pic.twitter.com/H8A4X9xDfd</a></p>
— Mike In Space (@mikeinspace) <a href="https://twitter.com/mikeinspace/status/1677535092741111809?ref_src=twsrc%5Etfw">July 8, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">To create an SRC-20 token, the JSON for the token is first deployed and then minted on the blockchain. The code for each of these procedures differs and conveys information about the desired action.</p>
<p dir="ltr">Here’s how the deployment code for a STAMP looks like;</p>
<p dir="ltr"><strong> "p": "src-20", </strong></p>
<p dir="ltr"><strong> "op": "deploy", </strong></p>
<p dir="ltr"><strong> "tick": "Token name",</strong></p>
<p dir="ltr"><strong> "max": "100000", </strong></p>
<p dir="ltr"><strong> "lim": "100",</strong></p>
<p dir="ltr"><strong> "dec": "18" // [optional]</strong></p>
<p dir="ltr">After the deployment, the STAMP can now be minted. The minting process broadcasts the transaction to the network and registers the STAMP on the Bitcoin blockchain;</p>
<p dir="ltr">The minting code looks like this;</p>
<p dir="ltr"><strong> "p": "src-20", </strong></p>
<p dir="ltr"><strong> "op": "mint", </strong></p>
<p dir="ltr"><strong> "tick": "STAMP", </strong></p>
<p dir="ltr"><strong> "amt": "100"</strong></p>
<p dir="ltr">Users who are looking to mint and deploy SRC-20 tokens can also easily mint them through platforms like <a href="https://www.stampscan.xyz/mint" rel="nofollow noopener" target="_blank">Stampscan.xyz</a> and <a href="https://openstamp.io/" rel="nofollow noopener" target="_blank">Open Stamp</a>. To do so, users just have to enter the ticker, total supply, limit per mint, fee rate for deploying the transaction, and the address to hold the SRC-20 deployment stamp. </p>
<div dir="ltr"><img alt="How to deploy and create SRC-20 tokens" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9193/content_stamp.webp" style="width: 950px; height: 761px;"></div>
<p dir="ltr">Information about minted STAMPS can be accessed on <a href="https://stampchain.io/" rel="nofollow noopener" target="_blank">Stampchain.io</a></p>
<p dir="ltr">Now, let’s look at what you can do with your SRC-20 tokens.</p>
<h2 dir="ltr">What Can SRC-20 Tokens and Stamps Be Used For?</h2>
<p dir="ltr">SRC-20 tokens work like any other fungible tokens, and here are some of their uses:</p>
<h3 dir="ltr">Routine Trading</h3>
<p dir="ltr">SRC-20 tokens are currently being traded on marketplaces like <a href="https://www.stampscan.xyz/trade" rel="nofollow noopener" target="_blank">Stampscan</a>. SRC-20 token holders can swap their tokens for Bitcoin or place sell and buy orders on Openstamp.io. SRC-20 tokens aren’t listed on any <a href="https://www.coingecko.com/learn/what-are-centralized-crypto-exchanges-cex" target="_blank">centralized exchange</a> currently; however, once they are listed, they can be traded against other assets on the exchange.</p>
<p dir="ltr">Likewise, users can buy and sell Stamps on marketplaces like RareStamp. </p>
<h3 dir="ltr">Peer to Peer Transactions</h3>
<p dir="ltr">Anyone who owns a Bitcoin wallet that supports SRC-20 tokens and Stamps can send and receive these tokens. SRC-20 tokens can be sent to peers and can potentially be used as a payment solution in the future. </p>
<h3 dir="ltr">Memorial Inscriptions on the Bitcoin Blockchain</h3>
<p dir="ltr">Bitcoin Stamps allows anyone to inscribe data on Bitcoins. Users can mint Stamps with metadata and images that reflect certain personal memories. This stores the event or data permanently on the Bitcoin blockchain and allows easy access to them. </p>
<h3 dir="ltr">Interacting With Supported Protocols</h3>
<p dir="ltr">SRC-20 token holders can interact with exchange applications like OpenStamp currently. Applications like these recognize the technology on which they are built. As Bitcoin Stamps and the SRC-20 standard continue to develop, they could gain applications in decentralized protocols like other exchanges and money markets. SRC-20 holders will be able to use their tokens on these platforms as seen with ERC-20 tokens. Note that such protocols as money markets that support SRC-20 tokens haven’t been developed at this time but could be available in the future.</p>
<h2 dir="ltr">Impact of SRC-20 tokens</h2>
<p dir="ltr">The Bitcoin community has shown interest in SRC-20 tokens and the Bitcoin Stamps technology. Amongst other inscription technologies that have emerged since BRC-20 tokens, SRC-20 tokens have garnered more interest. According to Stampscan, <a href="https://www.stampscan.xyz/tick?value=stamp" rel="nofollow noopener" target="_blank">over 4,000 people hold the STAMP</a> token while over <a href="https://www.stampscan.xyz/tick?value=KEVIN" rel="nofollow noopener" target="_blank">1,800 investors hold the KEVIN token</a>. Both tokens are the most popular SRC-20 tokens at the time of writing.</p>
<p dir="ltr">SRC-20 tokens have already reached a cumulative market cap of almost $100 million with the actively traded STAMP having a daily trading volume of over $30K. At time of writing, over 260,000 STAMPS have already been minted at the time of writing, according to <a href="https://stampchain.io/" rel="nofollow noopener" target="_blank">Stampchain.io</a>. This is presumably a show of interest by the community; however, other factors such as ease of creation and the urge to jump onboard a new trend might have contributed to these figures. </p>
<p dir="ltr">On technological grounds, SRC-20 tokens are having a similar impact on the Bitcoin blockchain as BRC-20 tokens and ordinals. On one hand, the Bitcoin community is exploring more use cases for the blockchain through SRC-20 and Stamps. On the other hand, it has also contributed to some user experiences issues on the network and a section of the community argues that it is extra to the needs of the network and the network congestion is a significant turnoff.</p>
<p dir="ltr">The SRC-20 community and developers are advancing their technology and hope to gain even more interest with time. The impact they have on the Bitcoin community and the whole space in the future will depend largely on their success from these potential developments.</p>
<h2 dir="ltr">How to Buy SRC-20 Tokens</h2>
<p dir="ltr">SRC-20 tokens aren’t listed on any centralized exchanges at the time of writing, but they can be traded on decentralized exchanges that support the Bitcoin STAMPS protocol. Openstamp.io and Stampscan offer SRC-20 trading services. You will also need a Bitcoin wallet that supports the protocol like the Leather wallet (FKA Hiro wallet), Unisat, and Freewallet.</p>
<p dir="ltr">Here’s how to buy SRC-20 tokens:</p>
<ol>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">If you have yet to install an SRC-20 wallet, download a desired wallet (Leather Wallet, Unisat, and Freewallet are known to support SRC-20), install it, and set up your account.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Visit an SRC-20 exchange. We will use <a href="https://openstamp.io/market" rel="nofollow noopener" target="_blank">Openstamp.io</a> and <a href="https://chromewebstore.google.com/detail/leather/ldinpeekobnhjjdofggfgjlcehhmanlj?pli=1" rel="nofollow noopener" target="_blank">Leather Wallet</a> for this tutorial</p>
</li>
</ol>
<ol start="3">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">On the platform, Click <strong>Connect</strong> from the top right corner, and select your wallet provider.</p>
</li>
</ol>
<div dir="ltr" role="presentation"><img alt="Connect wallet to SRC-20 exchange" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9195/content_stamp_connect.webp" style="width: 950px; height: 160px;"></div>
<ol start="4">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">On the asset page, you can see current listings. Click on the SRC-20 token you wish to purchase.</p>
</li>
</ol>
<div dir="ltr"><img alt="SRC-20 token listings" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9196/content_stamp_select_asset.webp" style="width: 950px; height: 506px;"></div>
<ol start="5">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">On your desired order, click the <strong>Buy Now</strong> on the right.</p>
</li>
</ol>
<div dir="ltr"><img alt="How to buy SRC-20 tokens " loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9197/content_stamp_buy_now.webp" style="width: 950px; height: 539px;"></div>
<ol start="6">
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Verify the order details, check the risk affirmation box, and click <strong>Confirm</strong> to complete.</p>
</li>
</ol>
<div dir="ltr" role="presentation"><img alt="Confirm SRC-20 token purchase" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9198/content_stamp_confirm.webp" style="width: 950px; height: 527px;"></div>
<p dir="ltr">Note that you must have enough BTC in your wallet to make the purchase.</p>
<p dir="ltr">When the transaction is confirmed on the Bitcoin blockchain, your purchased asset will be sent to your Bitcoin wallet.</p>
<p dir="ltr">The procedure is similar for other Bitcoin Stamps and SRC-20 marketplaces. </p>
<h2 dir="ltr">Bitcoin Stamps Vs Bitcoin Ordinals</h2>
<p dir="ltr">Here’s how Bitcoin Stamps work; it embeds data on UTXOs (Unspent Transaction Outputs). UTXO is the asset left after a transaction, like the balance (change) you receive after paying for a coffee. That is, assuming you have 1 BTC and you send 0.4 BTC to a friend, your UTXO is 0.6 BTC. Bitcoin Stamps creates tokens and NFTs on the Bitcoin blockchain by attaching data to this extra Bitcoin. Consequently, the STAMP is ‘destroyed’ when the wallet spends the unspent bitcoin. <a href="https://github.com/mikeinspace/stamps/blob/main/Key-Burn.md" rel="nofollow noopener" target="_blank">Destroyed</a> here means that the asset no longer exists within the UTXO set, however, it will continue to live in the transaction data of the blockchain held by all full nodes.</p>
<p dir="ltr">On the other hand, <a href="https://www.coingecko.com/learn/bitcoin-ordinals-nft" target="_blank">Bitcoin ordinals</a> attach data to ordinals. Ordinals are a numbering system for satoshis. An asset creator can trace a specific Satoshi and attach data in the form of a JSON or multimedia to them. </p>
<p dir="ltr">Bitcoin STAMP and Bitcoin ordinals are the two most popular inscription technologies on the Bitcoin blockchain. Both of them attach data to bitcoins to enable the creation of extra assets on the network. But they differ in the way they do this; here are the major differences between both protocols.</p>
<h3 dir="ltr">Data Pruning</h3>
<p dir="ltr">Bitcoin Stamps stores data directly on the Bitcoin blockchain on UTXOs. These bitcoins are unspent and are therefore not subject to witness modification at the point of execution. In contrast, Bitcoin ordinal details are stored in the witness data and can be modified by a syncing node. Bitcoin STAMPS data cannot be pruned. Assets minted using this protocol are eternally preserved and immutable. Bitcoin ordinals’ data can be pruned by nodes by removing old witness data. Note again that STAMPs are not ‘destroyed’ when the UTXO set attached to the asset is spent.</p>
<h3 dir="ltr">Data Size</h3>
<p dir="ltr">The data storage for Bitcoin Stamps is flexible. The recommended image resolution for data encoding is 24 by 24 pixels, but the creator has the freedom to attach images of higher resolution. This increases the data size proportionally and could result in higher fees for transactions involving the Stamp. For Bitcoin ordinals, the data size must not exceed the Bitcoin block size (4 MB). Creators are limited in the image resolution and overall data size, but this regulated data size ensures a standard transaction cost.</p>
<h3 dir="ltr">Signature Type</h3>
<p dir="ltr">Bitcoin Stamps claims an inherent <a href="https://www.coingecko.com/learn/mpc-wallet-vs-multi-sig-wallets" target="_blank">multi-signatory</a> structure. This applies to Stamps broadcasted through Counterparty or directly on the Bitcoin blockchain, meanwhile, Bitcoin ordinals adopt a single-signatory system.</p>
<table border="1" cellpadding="5" cellspacing="5" style="width:100%;">
<colgroup>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 25%;">
<p dir="ltr"> </p>
</td>
<td style="width:37.5%;">
<p dir="ltr" style="text-align: center;"><strong>Bitcoin Stamps</strong></p>
</td>
<td style="width:37.5%;">
<p dir="ltr" style="text-align: center;"><strong>Bitcoin Ordinals</strong></p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>How they store data</strong></p>
</td>
<td>
<p dir="ltr">Attaches data to UTXOs.</p>
</td>
<td>
<p dir="ltr">Attaches data to Satoshis.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Data pruning</strong></p>
</td>
<td>
<p dir="ltr">Data is stored in UTXOs and cannot be pruned.</p>
</td>
<td>
<p dir="ltr">Data is stored in witness data and can be pruned.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Data size</strong></p>
</td>
<td>
<p dir="ltr">Data size is flexible, can vary depending on the attached data.</p>
</td>
<td>
<p dir="ltr">Data size limit is set.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Signature type</strong></p>
</td>
<td>
<p dir="ltr">Multi-sig</p>
</td>
<td>
<p dir="ltr">Single-sig</p>
</td>
</tr>
</tbody>
</table>
<div dir="ltr"> </div>
<h2 dir="ltr">SRC-20 VS BRC-20 tokens</h2>
<p dir="ltr">The SRC-20 token standard utilizes the same technology as Bitcoin Stamps, while BRC-20 tokens are powered by Bitcoin ordinals. Both tokens are quite similar in the way they operate. They are fungible, run on the Bitcoin blockchain, and are both supported by inscription technologies. However, they share a significant difference due to their underlying technologies.</p>
<p dir="ltr">Here are some notable differences between SRC-20 and BRC-20 tokens;</p>
<h3 dir="ltr">Minting Data Format</h3>
<p dir="ltr">Only the SVG, PNG, and GIF image formats are allowed when creating SRC-20 or SRC-721 tokens. A wider range of file types and data formats is accepted for creating BRC-20 tokens. Creators can provide files in the SVG, HTML, PNG, and GIF formats. Generally, audio, texts, and videos can be attached while minting SRC-20 tokens.</p>
<h3 dir="ltr">Transaction Cost</h3>
<p dir="ltr">Due to the larger data size for SRC-20 transactions, fees for such transactions are significantly higher, this is because of the data format and the need to pay extra fees to store larger images. In contrast, BRC-20 transactions are strict on the image format and data size, users are unable to store larger images and the data size remains unchanged, also, the SegWit discount for BRC-20 tokens makes the tractions even cheaper. Additionally, BRC-20 token transaction data is stored in the witness section of the transaction and not necessarily node, this contributes to the cheaper transaction cost.</p>
<h3 dir="ltr">Adoption, Wallet, and Protocol Integration</h3>
<p dir="ltr">BRC-20 tokens have gained wider traction, compared to SRC-20 tokens. Many Bitcoin wallets and protocols are developing technologies to embrace the growing BRC-20 market. Centralized exchanges like Binance and Kucoin have listed BRC-20 tokens. AI-powered protocols like <a href="https://dexcheck.ai/info" rel="nofollow noopener" target="_blank">DexCheck</a> are developing special trackers and bots for BRC-20 tokens. This is not the same for SRC-20 tokens. Some Bitcoin wallets are yet to develop support for SRC-20 tokens and only a few decentralized protocols support SRC-20 tokens. Centralized exchanges are yet to list any SRC-20 tokens as well. This could, however, change in the future.</p>
<table border="1" cellpadding="5" cellspacing="5" style="width:100%;">
<colgroup>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width:25%;">
<p dir="ltr"> </p>
</td>
<td style="width:37.5%;">
<p dir="ltr" style="text-align: center;"><strong>SRC-20</strong></p>
</td>
<td style="width:37.5%;">
<p dir="ltr" style="text-align: center;"><strong>BRC-20</strong></p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Supported data format</strong></p>
</td>
<td>
<p dir="ltr">SVG, GIF, PNG only.</p>
</td>
<td>
<p dir="ltr">HTML, texts, images, audio, videos, SVG.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Transaction cost</strong></p>
</td>
<td>
<p dir="ltr">Fees are higher due to data and increases with the data.</p>
</td>
<td>
<p dir="ltr">Lower data size attracts lower fees. SegWit discount lessens fees.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Adoption and integration</strong></p>
</td>
<td>
<p dir="ltr">Currently supported by fewer protocols and platforms.</p>
</td>
<td>
<p dir="ltr">Supported by several platforms, protocols and exchanges.</p>
</td>
</tr>
</tbody>
</table>
<div dir="ltr"> </div>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">The initial purpose of the Bitcoin blockchain is regular peer-to-peer transactions. Technologies like the ones pioneered by Bitcoin Stamps and ordinals allow the creation of even more use cases for one of the oldest blockchains. However, these add more load to the network, leading to critics focusing on the congestion of the Bitcoin network. </p>
<p dir="ltr">That said, these models could also be modified in the future to not only function smoothly on the network but also complement the role of the Bitcoin blockchain as a facility for the transfer of value. SRC-20 tokens boast an advantage over BRC-20 tokens, thanks to the UTXO model and the resulting immutability of the Bitcoin STAMPS protocol. However, both systems are rather complementary and could be regarded as early prototypes at this stage.</p>
<p dir="ltr">On average, both technologies look promising and it will be interesting to watch their progression. However, they are still in their early stages and are highly speculative, so always do your own research around technology and any tokens you are looking to invest in. SRC-20 tokens mentioned in this article are only to serve as a reference point and should not be taken as an endorsement. </p>
<p dir="ltr"><em>Correction: An earlier version of this article misattributed STAMP as the first SRC-20 token. The first SRC-20 token is KEVIN.</em></p>
Joel Agbohttps://www.coingecko.com/learn/what-are-src-20-tokens-stamps-bitcoin
What Are SRC-20 Tokens?
SRC-20 tokens are tokens on the Bitcoin blockchain. They store data using UTXO, which ensures permanent Bitcoin storage that cannot be pruned.
Key Takeaways
...tag:www.coingecko.com,2005:Post/12072024-01-22T07:41:30Z2024-01-22T08:55:41ZJust Network – The Next Generation of DeFi on Tron<div><img alt="Just Network Tron" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9182/content_image3.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr"><em>This article is sponsored by Tron.</em></p>
<p dir="ltr">While most people may think DeFi has gone into hibernation after the bull market, the sector has been continuously building and growing at a steady pace. Particularly on the Tron network, DeFi TVL has increased by 96% between December 2022 to December 2023.</p>
<p dir="ltr">At the top of all DeFi protocols on Tron is Just Network, which accounts for almost 90% of DeFi TVL on Tron. With plenty of enthusiasm surrounding Just Network from within the Tron community and beyond, let's dive deeper into Just Network and its suite of financial products.</p>
<h2 dir="ltr">What Is the Just Network?</h2>
<p dir="ltr">Just Network is not just an individual protocol but a platform that hosts a variety of DeFi protocols built on Tron that are closely integrated with one another to form a robust ecosystem. With close to $13 billion in locked crypto assets as of December 2023, Just Network has become the premier destination for DeFi activities on Tron, as well as connecting the network to the rest of the multichain universe of the crypto space.<br>
<br>
Built and governed by its own community, users can execute transactions through Just Network in a permissionless manner without going through or requiring approval from any third party. Additionally, Just Network’s existing protocols are composable with one another, allowing for the creation of more complex and efficient Dapps or strategies on top of its core DeFi primitives.</p>
<p dir="ltr">As Tron Network’s flagship DeFi product, Just Network is also built to support <a href="https://www.coingecko.com/learn/stusdt-new-era-of-real-world-asset-tokenization" target="_blank">stUSDT</a>, a <a href="https://www.coingecko.com/learn/what-are-real-world-assets-exploring-rwa-protocols" target="_blank">Real-World Assets (RWA)</a> product that enables investors to gain exposure to traditional financial assets such as US treasuries and short-term government bonds. In partnership with the RWA DAO, Just Network has been entrusted to govern the RWA DAO platform and support operations related to stUSDT. By incorporating stUSDT with Just Network’s line of products, users can supply and borrow their stUSDT for other native tokens on Tron, such as <a href="https://www.coingecko.com/en/coins/tron" target="_blank">TRX</a> and <a href="https://www.coingecko.com/en/coins/bittorrent" target="_blank">BTT</a>. </p>
<h2 dir="ltr">Key Products of the Just Network</h2>
<p dir="ltr">Focusing on core DeFi primitives for newcomers and veterans in crypto alike, Just Network features a variety of protocols that allow users to make the most out of their crypto holdings. By utilizing these protocols, users can perform various complex strategies based on their risk tolerance. At the time of writing, Just Network currently features four distinct products:</p>
<h3 dir="ltr">JustLend DAO</h3>
<p dir="ltr"><img alt="JustLend DAO" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9183/content_JustLend_DAO.webp" style="width: 950px; height: 493px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://app.justlend.org/homeNew" target="_blank">JustLend DAO</a></span></p>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-are-crypto-loans-and-how-do-crypto-loans-work" target="_blank">Lending protocols</a> are a major part of DeFi systems across any network, and <a href="https://app.justlend.org/homeNew?lang=en-US" target="_blank">JustLend DAO</a> is no different. JustLend DAO is a money market protocol that allows users to supply idle assets, earn interest, and obtain leverage by borrowing other crypto assets. Using smart contracts, lenders and borrowers automatically accrue or incur a floating interest rate, which is algorithmically determined based on the supply and demand of the particular asset on JustLend DAO. On top of the interest earned from supplying assets on JustLend DAO, users can earn additional rewards in the form of <a href="https://www.coingecko.com/en/coins/usdd" target="_blank">USDD</a>.</p>
<p dir="ltr">When users deposit their funds to the protocol, they are held in a pool operated by smart contracts. In exchange, the depositor receives interest-bearing jTokens, which represent the depositor’s share of the pooled assets. Once held, interest earnings are automatically accrued to the depositor’s wallet and can be redeemed after the funds are withdrawn from JustLend DAO.</p>
<p dir="ltr">For borrowers to leverage on funds from the pool, they would first have to deposit their assets into the protocol as collateral. Like most decentralized lending protocols, JustLend DAO loans are overcollateralized, which means that borrowers will have to commit <a href="https://www.coingecko.com/learn/crypto-collateral-defi" target="_blank">collateral</a> that is worth more than the borrowed amount. Depending on the type of assets used as collateral, users may only borrow up to a certain amount based on the asset’s collateralization ratio.</p>
<p dir="ltr">From the mixture of supplied and borrowed assets, a user’s health factor can be determined based on the value of their collateral against their outstanding loans. If the borrower’s collateral value starts to fall below their outstanding loan amount, JustLend DAO will automatically <a href="https://www.coingecko.com/learn/defi-liquidation-crypto" target="_blank">liquidate</a> a portion of the borrower’s collateral to repay the loan, protecting the protocol from bad debts.<br>
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Given the volatile nature of crypto, asset prices can swing wildly in either direction within a short time period. As such, lending protocols constantly require reliable oracles that are able to provide the most accurate price fees in real-time. To combat the risk of the protocol going insolvent, JustLend DAO utilizes Winlink’s decentralized oracles, paired with a ‘smoothing mechanism’ to mitigate risks from short-term price fluctuations.</p>
<h4 dir="ltr">JST Token and the JustLend DAO Governance</h4>
<p dir="ltr"><img alt="JustLend DAO governance" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9184/content_JustLend_DAO_governance.webp" style="width: 950px; height: 487px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://app.justlend.org/voteNew" target="_blank">JustLend DAO</a></span></p>
<p dir="ltr">JST is the native token of the Just Network protocol and is used by the community to govern the JustLend DAO. JST holders can submit and vote on proposals regarding the development and administration of the protocol. The DAO protocol operates through a <a href="https://www.coingecko.com/learn/governance-tokens" target="_blank">governance</a> module, with time-based procedures to ensure that every proposal is properly scrutinized, voted on, and executed if it is passed.<br>
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Before proposals are submitted, discussions will be held through the JustLend DAO forum. If there are little to no objections, users who hold more than 200 million JST may submit their proposal for voting. Anyone with JST may then cast their votes at a 1:1 ratio based on their holdings. If most participants agree with the proposal and reach a quorum of at least 600 million votes, the proposal will be passed and implemented after two days.</p>
<p dir="ltr">JST’s utility extends beyond the JustLend DAO, functioning as the native token for other protocols within the Just Network ecosystem. In 2022, JST was granted statutory status as an authorized digital currency and medium of exchange in the Commonwealth of Dominica. To further grow the value of JST, the JustLend DAO has also unveiled plans to commence a buy-back-and-burn program. Additionally, the JustLend DAO has also partnered with the RWA DAO to redirect yields from stUSDT to the JST/TRX liquidity pool on SunSwap to promote further growth of the JST token.</p>
<h2 dir="ltr">JustLend Energy Rental</h2>
<p dir="ltr"><img alt="JustLend Energy Rental" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9185/content_JustLend_Energy_Rental.webp" style="width: 950px; height: 443px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://app.justlend.org/energy" target="_blank">JustLend</a></span></p>
<p dir="ltr">Unlike most networks, transactions on Tron require the use of Energy units, accessible solely through staking or burning TRX, a process that may be complex for the average user. As such, besides offering the ability to lend and borrow tokens, JustLend has also introduced an Energy Rental system that allows users to rent Energy at a cheaper rate.<br>
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Depending on their network usage, users can select the amount of Energy they wish to rent and the rental duration through a simple interface that automatically calculates the amount of TRX required as payment, including a prepaid amount and a security deposit. Energy units are replenished on a daily basis, and additional costs may be deducted from the security deposit if the rented amount of energy has not fully recovered. If users choose to end their rental prematurely, their prepaid amount will be refunded. However, users will have to manually end their rental on time and fully recover their used Energy to receive their initial security deposit back.</p>
<h2 dir="ltr">JustStable</h2>
<p dir="ltr"><img alt="JustStable" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9186/content_JustStable.webp" style="width: 950px; height: 430px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://just.tronscan.org/#/home" target="_blank">JustStable</a></span></p>
<p dir="ltr"><a href="https://just.tronscan.org/#/home" target="_blank">JustStable</a> is a stablecoin protocol that allows users to mint the protocol’s own overcollateralized stablecoin, <a href="https://www.coingecko.com/en/coins/just-stablecoin" target="_blank">USDJ</a>, with Tron’s native TRX token. As its name suggests, USDJ is a stablecoin pegged to the value of the US dollar at a 1:1 ratio and claims to be completely backed by TRX collateral, which can be verified on-chain.<br>
<br>
To mint USDJ, TRX holders have to create a collateralized debt position (CDP) using the JustStable portal, where they must stake enough TRX tokens with at least 150% of the total value of USDJ they want to generate. Once USDJ is minted, it can be transferred and traded like any other crypto asset. Through its integration with Just Network’s other protocols, users can choose to deposit USDJ to earn a leveraged yield on JustLend DAO. Non-TRX holders can also skip the hassle and directly borrow USDJ using other forms of collateral.</p>
<p dir="ltr">While USDJ has remained off-peg for some time, it has served as a store of value and a more stable source of <a href="https://www.coingecko.com/learn/liquidity-crypto" target="_blank">liquidity</a> to the various dApps on Tron. However, its utility transcends its native blockchain, allowing anyone to spend and trade USDJ on any supported network or exchange that supports it. </p>
<h2 dir="ltr">Just Cryptos</h2>
<p dir="ltr"><img alt="Just Cryptos" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9187/content_Just_Cryptos.webp" style="width: 950px; height: 464px;"></p>
<p dir="ltr"><span style="font-size:11px;">Source: <a href="https://just.network/token" target="_blank">Just Cryptos</a></span></p>
<p dir="ltr"><a href="https://www.just.network/token/" target="_blank">Just Cryptos</a> is a bridging protocol for the Tron network, making it possible for users to transfer their funds between Tron and other blockchains, such as Bitcoin and the Ethereum network. The platform currently supports five bridged assets – <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank">Bitcoin</a>, <a href="https://www.coingecko.com/en/coins/ethereum" target="_blank">Ethereum</a>, <a href="https://www.coingecko.com/en/coins/litecoin" target="_blank">Litecoin</a>, <a href="https://www.coingecko.com/en/coins/dogecoin" target="_blank">Dogecoin</a>, and <a href="https://www.coingecko.com/en/coins/apenft" target="_blank">APENFT</a> – which are stored on the Tron blockchain and can be transacted as normal Tron network tokens. The storage addresses for each bridged asset are publicly available and can be easily confirmed by everyone.<br>
<br>
Unlike conventional <a href="https://www.coingecko.com/learn/crypto-bridges-blockchain-interoperability" target="_blank">cross-chain bridges</a>, users are unable to directly interact with Just Cryptos to bridge their assets directly to Tron. Instead, bridged tokens can be accessed from the centralized exchange <a href="https://www.coingecko.com/en/exchanges/poloniex" target="_blank">Poloniex</a>. Users can purchase or deposit the assets on their Poloniex wallets and then withdraw them to their Tron wallet address. </p>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">Leveraging fast transactions and low transaction fees, the Tron Network has what it takes to create a thriving DeFi ecosystem. Just Network offers a comprehensive solution for newcomers and veterans alike. With some of the most popular dApps on Tron, Just Network has not only become a gateway for exposing users to the benefits of the network but also allows them to shape the future of Tron’s DeFi space through governance.</p>
<p dir="ltr">While JustLend DAO and JustStable are core primitives that underpin the current state of Tron’s DeFi ecosystem, Just Cryptos connects the Tron network to the wider multichain space. As the Just Network ecosystem continues to grow, Just Cryptos will play a pivotal part in attracting more liquidity and assets for communities and developers to build upon. Ultimately, each part of Just Network’s core offerings, combined with their interoperability, will set the stage for Tron’s next wave of DeFi products.</p>
CoinGeckohttps://www.coingecko.com/learn/just-network-tron-defi
This article is sponsored by Tron.
While most people may think DeFi has gone into hibernation after the bull market, the sector has been continuously building and growing at a steady pace. P...tag:www.coingecko.com,2005:Post/12062024-01-19T14:34:25Z2024-01-19T10:16:14ZCelestia: Data Availability and the Rise of the Modularity Meta <h2>What Is Celestia? </h2>
<p dir="ltr">Celestia is a modular data availability (DA) layer. It is a plug-and-play module allowing anybody to spin up their own blockchain without needing a validator set. Providing cost-effective data availability allows for greater scalability and customization while maintaining shared security. Celestia is a building block that makes customized execution environments economically feasible.</p>
<p dir="ltr">Basically, Celestia allows developers to build cooler, more application-specific rollups.</p>
<hr>
<h3 dir="ltr">Key Takeaways </h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Celestia provides a data availability layer service for rollups. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Rollups leveraging Celestia’s data availability layer but using Ethereum for settlement and dispute resolution are called Celestiums. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Celestia is a building block for creating bespoke execution environments.</p>
</li>
</ul>
<hr>
<p dir="ltr"><img alt="What is Celestia?" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9192/content_What_Is_Celestia.webp" style="width: 950px; height: 477px;"></p>
<p dir="ltr">Celestia is tech-heavy, and grasping its value proposition entails a relatively robust grasp of <a href="https://www.coingecko.com/learn/what-is-a-blockchain" target="_blank">blockchains</a> and their infrastructure, as well as the monolithic versus modular debate. Modularity is the next meta-leap for the crypto space. It involves dividing a blockchain into distinct components. Segmenting a blockchain allows for the optimization of each function, and Celestia specializes in data availability and consensus. </p>
<div dir="ltr"><img alt="Blockchain components" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9171/content_blockchain_components.webp" style="width: 950px; height: 343px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://celestia.org/what-is-celestia/" rel="nofollow noopener" target="_blank">https://celestia.org/what-is-celestia/</a> </span></div>
<p dir="ltr">A blockchain can be broken down into four components: </p>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Execution</strong>: transaction execution </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Settlement</strong>: resolution/ fraud proofs/ bridge between other execution layers </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Consensus</strong>: agreement on the order of transactions </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Data Availability</strong>: providing accessible data for all network participants </p>
</li>
</ul>
<p dir="ltr">In simpler terms, execution is where final points are tallied. New transactions get uploaded, and this new state is broadcasted. Settlement is where disputes take place. Any disagreements related to the validity of transactions are solved here. It is here that the bulk of variation between <a href="https://www.coingecko.com/learn/optimistic-vs-zero-knowledge-rollups" target="_blank">rollups</a> becomes visible: optimistic rollups use fraud proofs, whereas ZKrollups use validity proofs. Consensus is the arrangement and agreement on the order of transactions. Data availability is the provision of data that allows anybody to verify transactions. </p>
<p dir="ltr">Celestia specializes in consensus and data availability, which walk hand in hand. Data availability requires consensus to arrange and order the data; otherwise, the history could not be determined. </p>
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<div class="embed-container"><iframe allowfullscreen="" frameborder="0" src="https://www.youtube.com/embed/yVl8m5WLVuE"></iframe></div>
<h2 dir="ltr">Celestia: ‘A Dropbox For Rollups’ </h2>
<p dir="ltr">The best and most understandable description of Celestia comes from Twitter (X) user <a href="https://twitter.com/0xngmi" rel="nofollow noopener" target="_blank">0xngmi</a>.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">if youre confused about celestia you can think of it as dropbox but for chains</p>
— 0xngmi (@0xngmi) <a href="https://twitter.com/0xngmi/status/1724492462389973067?ref_src=twsrc%5Etfw">November 14, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">Dropbox is a file hosting service offering cloud storage. Instead of storing data on a personal device, users leverage Dropbox. Having fewer stored files on a personal device improves its performance (execution), and Celestia’s value offering at a high level is perfectly encapsulated in this tweet.</p>
<p dir="ltr">Celestia simply orders data and makes it available for rollups. Celestia handles and optimizes storage, allowing for higher performance. This modular building block grants Layer 2s the freedom and cost-effectiveness to explore new execution environments. This offering pushes for and enables more <a href="https://www.coingecko.com/learn/what-are-appchains-application-specific-blockchains" target="_blank">application-specific</a> rollups.</p>
<p dir="ltr">The core message to developers deploying <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols" target="_blank">Layer 2s</a> from Celestia is this: Let us handle all of your data availability and consensus requirements, and you focus on building the optimum execution environment for your application, whatever it may be.</p>
<div dir="ltr">
<br>
<img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9173/content_data_sampling.webp" style="width: 950px; height: 409px;"><br>
<span style="font-size:11px;">Source: <a href="https://celestia.org/what-is-celestia/" rel="nofollow noopener" target="_blank">https://celestia.org/what-is-celestia/</a> </span>
</div>
<div dir="ltr"> </div>
<h3 dir="ltr">Celestia Data Availability Sampling </h3>
<p dir="ltr">Data availability means that any node in the network can verify that the information it receives is valid and builds on the classic notion of ‘don’t trust, verify.’ Data has to be stored to be verified, and Celestia's big breakthrough is data availability sampling (DAS). </p>
<p dir="ltr">Under the monolithic approach, each node downloads a full copy of the data, which it executes itself to ensure validity. This is execution heavy and quickly becomes expensive. Celestia’s DAS solution means that nodes only need to download a sample of each block as opposed to a full copy of the data. This technique allows light nodes to verify efficiently. </p>
<p dir="ltr">Light nodes are light because they do not download and process transaction data- avoiding downloading this data is why they prove effective scaling solutions. Celestia’s data availability sampling provides the strong data availability assurances these light nodes require. This new primitive enables Celestia to rapidly scale the number of participants (light nodes) and, therefore, data throughput. </p>
<h2 dir="ltr">Solving the Problems of Resource Pricing & State Growth </h2>
<p dir="ltr">All decentralized blockchains have a finite capacity for resources. Nodes independently execute transactions to arrive at the virtual machine's current state. This has a resource cost. All nodes download transaction data to execute it and store it – it must be available upon request. </p>
<p dir="ltr">All of these actions require resources, and all resources come with a price tag. Blockchains naturally need to meter these resources. Resource metering is far more complicated than it would first appear, even more so when considering longer-term visions such as state growth. </p>
<p dir="ltr">Decentralization has been and always will be a core tenet of the Ethereum world computer vision. State growth refers to how quickly the blockchain is growing. Distributed ledgers store data, and as the network grows, so does the barrier to entry for operating a node. The centralization of node operators is not a theoretical problem and has played out over recent years. Naturally, as cost and difficulty barriers increase, more participants are forced out of the network. To keep a network decentralized it needs a diverse cohort of node operators. </p>
<p dir="ltr">Celestia’s solution only works because it is a data availability only chain. A general-purpose data layer makes resource metering more cost-effective and flexible compared to a monolithic chain. Data availability sampling verifies that the data is available without downloading it, and this is only possible because execution is not included. Sometimes described as a ‘Lazy Ledger,’ Celestia does no execution and is a blockchain where arbitrary data is dumped. It orders this data and makes it available. </p>
<p dir="ltr">Celestia introduces a Layer 1 responsible for data availability and ordering and has Layer 2s responsible for execution. Creating separate fee markets for data availability and execution allows markets to price each component independently, and separate markets mean more flexible and accurate pricing. </p>
<h2 dir="ltr">Modularity Thesis: The Start of the Modular Era</h2>
<div dir="ltr"><img alt="Monolithic vs Modular Blockchains" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9188/content_Monolithic_vs_Modular_Blockchains.webp" style="width: 950px; height: 479px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://celestia.org/learn/beginners/modular-blockchains-for-beginners/" rel="nofollow noopener" target="_blank">https://celestia.org/learn/beginners/modular-blockchains-for-beginners/</a> </span></div>
<p dir="ltr">Monolithic design almost always precedes modular design. The monolithic build makes sense initially because it is less technically heavy. When the technology crosses a certain threshold and the basis of competition shifts from performance to cost and flexibility, the modularity era begins. Blockchains are entering this era. </p>
<p dir="ltr">Modularization is the commoditization of each module. It reduces cost, increases the rate of innovation, and bolsters flexibility. Free market agents compete to find optimal solutions, and builders can swap modules depending on their aims. Segmenting the monolithic blockchain into components will enable blockchains to scale well beyond their current limits. The rise of the specialist has been one of the defining trends throughout the 21st century, and why should blockchains be exempt? </p>
<p dir="ltr">When discussing complex frontier technologies, analogies are helpful. Imagine the monolithic blockchain as a start-up founder running the entire operation themselves. Product design, marketing, research, sales, and business development. The modular design is when the founder hires specialists for each role. Instead of doing everything all at once, outsourcing divides the workload and distributes it to the most efficient candidate. </p>
<div dir="ltr">Another analogy highlighting the difference between monolithic and modular design would be road systems. A monolithic blockchain is one long single road where all traffic travels. Increased volume and variance of traffic leads to congestion. A modular blockchain is a highway system. Each road serves a specific purpose, such as cargo transport or long-distance travel. This flexibility allows it to better handle increased volumes and variety of traffic.<br>
<br>
<img alt="Future of rollups" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9175/content_rollup_future.webp" style="width: 782px; height: 691px;">
</div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://celestia.org/what-is-celestia/" rel="nofollow noopener" target="_blank">https://celestia.org/what-is-celestia/</a> </span></div>
<div dir="ltr"> </div>
<h3 dir="ltr">Rollup Centric Future</h3>
<p dir="ltr">Modularity began becoming popular under Ethereum’s rollup-centric roadmap. These smart contract rollups (general purpose) use Ethereum as their base layer for consensus and data availability, with execution and settlement occurring on Layer 2. Classic examples include Arbitrum and Optimism. These general-purpose chains execute and send batched transaction data back to the parent chain. If the modular thesis plays out on Ethereum, these general-purpose Layer 2s will eventually become the primary purchasers of Ethereum blockspace, replacing end users. </p>
<p dir="ltr">While most Layer 2s built on Ethereum are general purpose, Celestia’s rollup future diverges with an increasing focus on application-specific rollups. Referred to as Sovereign rollups, these app-specific chains use Celestia for consensus and data availability handling execution natively. The specialized nature of these chains is an extension of the Cosmos app-chain thesis. Cosmos certainly had the most profound vision but lacked finesse for execution. Celestia is the newest scaling technology, breathing life into back this thesis. However, Ethereum Layer 2s can still leverage Celestia for data availability while using Ethereum for settlement. Celestia has even released a modular data availability interface for the <a href="https://www.coingecko.com/learn/optimism-superchain-interoperability-ethereum" target="_blank">OP Stack</a>. </p>
<h2 dir="ltr">Celestia’s Rollups-as-a-Service</h2>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Rollups-as-a-Service with Celestia underneath ✨<br>
<br>
RaaS platforms make deploying a high-throughput blockchain as easy as deploying a smart contract.<br>
<br>
Deploy today: <a href="https://t.co/nQfVjX7Xo5">https://t.co/nQfVjX7Xo5</a> <a href="https://t.co/9thSRzM6DN">pic.twitter.com/9thSRzM6DN</a></p>
— Celestia (@CelestiaOrg) <a href="https://twitter.com/CelestiaOrg/status/1742599112904802550?ref_src=twsrc%5Etfw">January 3, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">Celestia’s rollups-as-a-service allows for one-click deployment, and thanks to Celestia, blockchains can be created with minimal cost and time. In short, blockchains can bootstrap without validators, token distribution mechanisms, or consensus mechanisms. Celestia is putting the data availability in the plug-and-play stack. </p>
<div dir="ltr">The only question that remains is the power dynamic between rollups. Will there be a handful of dominant players, or will a Cambrian explosion lead to thousands of rollups? It depends on the type of rollup. The implementation of EIP-4844 (proto-danksharding) will massively improve the scalability of general-purpose Layer 2s and likely lead to a winner-takes-all dynamic due to the prevalence of network effects on these Layer 2s. In the same stroke, application-specific/ sovereign rollups will propagate, with each app owning its own rollup.<br>
<br>
<img alt="TIA Tokenomics" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9189/content_TIA_Tokenomics.webp" style="width: 950px; height: 542px;">
</div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://docs.celestia.org/learn/staking-governance-supply#tia-allocation-at-genesis" rel="nofollow noopener" target="_blank">https://docs.celestia.org/learn/staking-governance-supply#tia-allocation-at-genesis</a> </span></div>
<div dir="ltr"> </div>
<h2 dir="ltr">TIA Tokenomics: Modular Money</h2>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/celestia" target="_blank">TIA</a>. Modular money or killing fields for retail? Perhaps both? A large percentage of tokens have been reserved for insiders, and at the time of writing, the circulating supply is only 15% of the total supply. A small float always leads to an artificially high <a href="https://www.coingecko.com/learn/what-is-fully-diluted-valuation-fdv-in-crypto" target="_blank">FDV (Fully Diluted Valuation)</a>, and this small circulating supply is a significant part of TIA’s incredible performance as of late. </p>
<p dir="ltr">The inflation rate is relatively high, starting at 8% annually, and decreases 10% year on year until it reaches the fixed long-term issuance rate of 1.5%. On average, Celestia delegators are currently earning 16% APY for staking their tokens, and it has been airdrop season for TIA holders. All TIA stakers were included in the recent <a href="https://dymension.xyz/" rel="nofollow noopener" target="_blank">Dymension</a> snapshot, and given Celestia’s function as a data availability and consensus layer, it is likely that chains building using its services will airdrop tokens to TIA stakers. </p>
<h3 dir="ltr">TIA’s Price Performance</h3>
<div dir="ltr"><img alt="Celestia TIA Price Chart" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9191/content_Celestia_TIA_Price_Chart.webp" style="width: 950px; height: 509px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://www.coingecko.com/en/coins/celestia" target="_blank">https://www.coingecko.com/en/coins/celestia</a> </span></div>
<p dir="ltr">Summarizing TIA’s recent performance paints a bold picture. A small circulating supply, growing appetite to speculate on the modularity thesis, a 21-day staking unlock period, and a developing airdrop narrative. It is not surprising that TIA has displayed excellent relative strength under these conditions. </p>
<h3 dir="ltr">TIA Unlocks</h3>
<div dir="ltr">
<br>
<img alt="TIA Tokenomics Available Supply" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9190/content_TIA_Tokenomics_Available_Supply.webp" style="width: 950px; height: 542px;">
</div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://docs.celestia.org/learn/staking-governance-supply#tia-allocation-at-genesis" rel="nofollow noopener" target="_blank">https://docs.celestia.org/learn/staking-governance-supply#tia-allocation-at-genesis</a> </span></div>
<p dir="ltr">But the elephant in the room is token unlocks. Over 50% of the total TIA supply is reserved for insiders, 53.2% to be precise. What happens when these VCs who bought TIA at a low–cost basis unlock their tokens? Will retail absorb this sell pressure?</p>
<p dir="ltr">On October 30th, 175.56 million TIA tokens will be unlocked. This equals 120.36% of the current circulating supply. </p>
<div dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9180/content_unlocks.webp" style="width: 285px; height: 538px;"></div>
<div dir="ltr"><span style="font-size:11px;">Source: <a href="https://token.unlocks.app/celestia" rel="nofollow noopener" target="_blank">https://token.unlocks.app/celestia</a> </span></div>
<p dir="ltr">Over 100% of the market cap will be added overnight in cliff unlocks alongside a steady stream of linear unlocks. October 30th and the subsequent weeks will be the inflection point for TIA holders.<br>
<br>
However, in bull markets, there is always a flip in the importance of flows. While emissions/ unlocks (bearish flows) have an outsized effect on price during bear markets due to a lack of overall market liquidity, new holders (bullish inflows) become king during the bull market. If the modularity thesis takes off and Celestia has killer rollups paying in TIA for data availability, the market can easily consume these unlocks. Additionally, TIA staking acts as a powerful token sink. The current airdrop meta combined with sizeable staking APY provides two powerful incentives for token locking, and locked tokens do not hit the order books. </p>
<p dir="ltr">Despite looming unlocks, TIA’s value proposition is highly impressive. All rollups pay for DA services in TIA, and it can be used as gas on chains meaning it is an excellent bootstrapping tool. Airdrops are another massive incentive for ownership, and until the launch of EigenLayer’s token, it is the only liquid vehicle for exposure to the modularity thesis. TIA is modular money. </p>
<h2 dir="ltr">Celestia’s Future: All Hail Modularity </h2>
<p dir="ltr">Chris Burniske, a partner at Placeholder and a seasoned market operative with a better eye for value than most, is bullish on modularity. He has successfully surfed numerous waves, including Ethereum last cycle, flipped bullish on Solana near the bottom this cycle, and now has an interest in Celestia. Placeholder are early investors in Celestia, so this should be taken with a pinch of salt, but Burniske’s ability to spot future trends early is impressive. </p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en"><a href="https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw">$BTC</a> and <a href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw">$ETH</a> the OG crypto barbell.<a href="https://twitter.com/search?q=%24SOL&src=ctag&ref_src=twsrc%5Etfw">$SOL</a> and <a href="https://twitter.com/search?q=%24TIA&src=ctag&ref_src=twsrc%5Etfw">$TIA</a> the integrated + modular barbell.</p>
— Chris Burniske (@cburniske) <a href="https://twitter.com/cburniske/status/1719401786472300892?ref_src=twsrc%5Etfw">October 31, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p dir="ltr">Blockchains enter their next era, and instead of relying on the one-man-bands (monolithic chains), specialists are being employed to focus on specific performance verticals. Celestia offers its services to order and make data available for rollups, and this ‘lazy’ approach devoid of execution allows it to optimize cost and performance. </p>
<p dir="ltr">Celestia delivers the scale and economic feasibility of ordering data for developers to build their own computational environments. In a sentence, Celestia is a foundational building block for creating customized execution environments. </p>
<p dir="ltr">Celestia is making it easier to deploy rollups and fundamentally represents the next iteration of the Cosmos app-chain thesis. The whole thesis is for Celestia’s DA layer to enable the creation of bespoke execution environments. It is a unique primitive unlocking a new wave of application-specific rollups, and Celestia will be the data availability layer underpinning this next generation.</p>
<p dir="ltr">Value runs downhill in this game, and narratives can quickly form around projects with the potential to eat the stack. Welcome to the era of modular money.</p>
<p dir="ltr">This article is for educational purposes only and should not be taken as financial advice. Always do your own research before investing in any protocol or token.<br>
</p>
Kofi Jhttps://www.coingecko.com/learn/what-is-celestia-tia-data-availability-modular-blockchainWhat Is Celestia?
Celestia is a modular data availability (DA) layer. It is a plug-and-play module allowing anybody to spin up their own blockchain without needing a validator set. Providing co...tag:www.coingecko.com,2005:Post/12032024-01-18T16:34:42Z2024-01-18T09:00:08ZWhat Are Prediction Markets And How to Bet On Real Life Events Using Crypto?<h2>What Are Prediction Markets in Crypto? </h2>
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<p dir="ltr">A crypto prediction market is a marketplace where people can buy and sell predictions and bet on the outcome of future events using cryptocurrency. By voting "yes" or "no" to future events, the prediction market determines a price that represents the market's estimate of the probability of the event occurring.</p>
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<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Users bet on future event outcomes using cryptocurrency, buying shares that pay out based on accuracy. Market prices aggregate beliefs into a sentiment barometer.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Polymarket is the largest prediction market, using USDC stablecoin. Others include AMM-style Polkamarkets and Polkadot-based Zeitgeist.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">These markets incentivize sharing true beliefs through financial commitment. High participation integrates varied views into market-determined probability forecasts.</p>
</li>
</ul>
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<div dir="ltr"><img alt="What are crypto prediction markets?" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9170/content_Crypto_Prediction_Markets.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr">When can we say we really know what’s going to happen in the future? And if we think we know, are we willing to put those beliefs to the test? Now with prediction markets in crypto, we can. In this article we’ll take a look at prediction markets in crypto, explain the most popular ones, and how we can get started using them.</p>
<div dir="ltr"><img alt="Predicting the future with crypto" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9142/content_image5.webp"></div>
<div dir="ltr"><span style="font-size:11px;">Image generated by writer using DALL·E 3 </span></div>
<h2 dir="ltr">Prediction Markets In Crypto Explained</h2>
<p dir="ltr">Prediction markets in crypto allow you to bet on the outcomes of future events. Topics to take a stance on can range drastically and will often follow the 'current' thing, ranging from climate change to political elections or even supernatural events.</p>
<p dir="ltr"><em>For example, the prediction market that was resolved around the Bitcoin approval date – 'Bitcoin ETF approved by Jan 15?'</em></p>
<p dir="ltr"><em>People who thought it would be approved before January 15, 2024, bought themselves "Yes" shares for $0.50 meaning they thought there was a 50% chance it would. People who thought this was too early bought a “No” share.</em></p>
<p dir="ltr"><em>But as we got closer to the date and more bullish signals and news were publicized, more people were convinced the ETF would be approved before the set date. So we saw a rise in price of ‘Yes’ shares and a decline of “No” shares.</em></p>
<p dir="ltr"><em>With the ETF ultimately being approved on January 11, 2024, the market resolved earlier than expected and anyone who bet on "Yes" and held their shares saw each of their shares become worth $1 immediately. Conversely, any trader who owned "No" shares saw their investment become worthless.</em></p>
<h2 dir="ltr">What Are the Pay-Outs Mechanisms on Crypto Prediction Markets?</h2>
<p dir="ltr">There are two different methods for getting paid out when your bet becomes reality: fixed payout and pari mutuel payout.</p>
<h3 dir="ltr">Fixed Payout</h3>
<p dir="ltr">This is the most straightforward. A fixed payout is like reserving your prize money upfront. When you place your bet, your possible winnings are locked in right away and do not change later on.</p>
<p dir="ltr">For example, if you buy 300 "YES" shares, you will get 300 points if you are right. It's like putting 300 coins in your piggy bank for a rainy day. The only thing that matters is if your guess is right or wrong – all action after you bet does not affect your payout.</p>
<h3 dir="ltr">Pari Mutuel Payout</h3>
<p dir="ltr">This method pays out by dividing the prize pool between all bettors who won the bet. It's a prize pool where all winning players get their fair share. The more people who win, the smaller each prize will be. The fewer winners, the bigger your share.</p>
<p dir="ltr">Both have advantages and disadvantages – fixed payout ensures knowing your return, while parimutuel could turn in your favor if you take the contrarian side of a bet and win.</p>
<h2 dir="ltr">The Real Time Sentiment Barometer?</h2>
<p dir="ltr">The name "prediction markets" can give a misleading impression, because there is more to it. While predicting outcomes is one goal, prediction markets could also serve as a real-time tool to gauge how people dynamically value and price near-term events.</p>
<p dir="ltr">Understanding this shifting sentiment can provide insight into developing stories and tell us perhaps more about what really is happening and what is not.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Blockchain-based prediction markets may be the one force strong enough to counterbalance the spread of incorrect information on social media. They give people a financial incentive to seek the truth and then protect them with the twin shields of pseudonymity and decentralization.</p>
— Balaji (@balajis) <a href="https://twitter.com/balajis/status/1087069353688715264?ref_src=twsrc%5Etfw">January 20, 2019</a>
</blockquote>
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<p dir="ltr">While prediction markets could function as sentiment barometers, liquidity remains crucial, as always. As with any market, accuracy tends to improve when volume is high. Some markets have (extremely) low <a href="https://www.coingecko.com/learn/liquidity-crypto" target="_blank">liquidity</a>, thus limiting insights into true expectations. On top of that, we must consider that an event not coming to fruition does not necessarily mean the implied odds were low or vice versa.</p>
<h2 dir="ltr">History of Prediction Markets in Crypto</h2>
<p dir="ltr">Prediction markets are not a new concept in crypto. In 2020, the now-collapsed FTX exchange introduced a similar type of market where users could bet on future events like elections and token prices.</p>
<p dir="ltr">One of the notable examples was the "TRUMP2024" market that centered around whether Donald Trump would run for president again in 2024. Participants could buy (long) or sell (short) contract tokens representing each outcome – if Trump ran, the tokens expired to $1, and if not, became worthless at $0.</p>
<p dir="ltr">Essentially, these "bets" involved going long or short on future contract tokens. However, current prediction markets differentiate in that traders purchase outcome shares rather than going long or short. </p>
<p dir="ltr">Unfortunately, with the bankruptcy of FTX, the TRUMP2024 market will never be settled (on FTX). Another reminder how centralization could pose risks to participants just wanting to bet. </p>
<div dir="ltr"><img alt="FTX Trump Prediction Market" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9144/content_image4.webp" style="height: 422px; width: 950px;"></div>
<h2 dir="ltr">The Significance of Crypto in Prediction Markets</h2>
<p dir="ltr">While traditional markets normally only use fiat currency, prediction markets in crypto are unique in their use of cryptocurrency for both placing bets and collecting payouts.</p>
<p dir="ltr">The cryptocurrencies used are <a href="https://www.coingecko.com/learn/what-are-stablecoins-top-5-stablecoins-by-market-cap" target="_blank">stablecoins </a>that are perfectly suited for this purpose. Foremost, the transparency of the blockchain ledger allows full visibility and takes away doubts that users are betting against an opaque third party "house".</p>
<p dir="ltr">Additionally, these stablecoins remain stable and are under the self-custody of each user. Users will only interact through smart contracts and will not deposit cryptocurrencies into a centralized wallet. Lastly, the decentralized nature of crypto makes it possible for anyone from anywhere in the world to use the market, regardless of their location, except for restricted countries.</p>
<p dir="ltr">Some well-known crypto prediction markets we will explore include Polymarket, Polkamarkets and ZeitGeist. </p>
<h2 dir="ltr">Polymarket: Largest Prediction Market Powered By Crypto</h2>
<p dir="ltr"><a href="https://polymarket.com/" rel="nofollow noopener" target="_blank">Polymarket</a> is the largest and most popular prediction market in the crypto space. It has the highest liquidity and is most frequently quoted on Crypto Twitter. Polymarket allows its users to access the prediction markets through USDC, a stablecoin 1:1 pegged to the dollar.</p>
<div><img alt="Polymarket Dashboard" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9145/content_image8.webp"></div>
<p dir="ltr">Sadly, due to regulatory issues Polymarket is forbidden from letting U.S. citizens trade on its platform. However, people of the U.S. can still view information on the markets.</p>
<h3 dir="ltr">How Does Polymarket Work?</h3>
<p dir="ltr">Just as explained in the previous section, the price or odds represent the current probability of an event occurring according to the market assessment.</p>
<p dir="ltr">For example: In a prediction market on whether Sam Bankman Fried, the former FTX CEO, will be sentenced to 50+ years in federal prison or not, the “Yes” shares trading at 31c indicate that the market thinks there is a 31% chance that he will.</p>
<div><img alt="Prediction Market SBF Jailtime" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9146/content_image2.webp"></div>
<p dir="ltr">The ultimate outcome of whether SBF is sentenced to 50 or more years in prison will be known by 11:59 PM ET on June 30, 2024.</p>
<p dir="ltr">If traders betting "Yes" are right, this means SBF gets a hard sentence of 50+ years, and each “Yes” share would be worth $1. That’s a 69c profit per 31c share price. Any trader who owned “No” shares would see their investment become worthless. This is peer-to-peer trading.</p>
<p dir="ltr">But it's important to mention that you're not locked into your bet. If you change your opinion, you can sell your position at the current odds anytime before the market ends. So you can always sell when odds seem to shift and you do not want to sit it through until the final verdict.</p>
<h3 dir="ltr">Limit Orders and Rewards</h3>
<p dir="ltr">An extra feature of Polymarket is that it allows users to place <a href="https://www.coingecko.com/learn/take-profit-and-stop-loss-levels" target="_blank">limit orders</a> in the order book. This means you won’t have to buy or sell instantly and could bid or ask a lower or higher price than the current market price, similar to regular trading. </p>
<p dir="ltr">On top of that, Polymarket rewards those who fill the order book, similar to maker fees, with rewards being paid out on a weekly basis. For more information on rewards, please visit their official <a href="https://learn.polymarket.com/trading-rewards">documentation</a>.</p>
<h3 dir="ltr">Getting Started on Polymarket</h3>
<p dir="ltr">Getting started requires knowing how to use a self-custody wallet and transferring cryptocurrency. This is a straightforward process.</p>
<p dir="ltr"><strong>Create Account and Deposit USDC</strong></p>
<p dir="ltr">First, create an account on Polymarket, which can be done with a Google account or by connecting your Coinbase wallet or many of the most <a href="https://www.coingecko.com/learn/metamask-alternatives" target="_blank">popular self-custody wallets</a>.</p>
<p dir="ltr">After creating an account, it's time to deposit money to bet with, in this case USDC. Note that you can export your private key, so you control your funds in a wallet of your choice. You can import your Polymarket wallet into another wallet provider, such as <a href="https://www.coingecko.com/learn/complete-beginners-guide-to-metamask" target="_blank">MetaMask</a>.</p>
<p dir="ltr"><strong>Make Your First Trade</strong></p>
<p dir="ltr">Before making your first trade, explore the available markets on Polymarket to find one you want to predict. Read the market details carefully and understand what position you are taking. Check the liquidity and use the built-in calculator to see potential returns.</p>
<p dir="ltr">Decide on your position and click "Yes" or "No" to place your bet, then enter the amount you wish to wager. As mentioned above, it is possible to create limit orders by specifying your preferred buy or sell price and amount.</p>
<div dir="ltr"><img alt="Polymarket Buy and Sell" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9147/content_image3.webp"></div>
<p dir="ltr"><strong>Monitor and Cash Out if Right</strong></p>
<p dir="ltr">If you are in a bet or have limit orders set, monitor the market closely. Good luck!</p>
<h2 dir="ltr">Polkamarkets: The Automated Market Maker Prediction Market</h2>
<p dir="ltr"><a href="https://www.polkamarkets.com/" rel="nofollow noopener" target="_blank">Polkamarkets</a> is a prediction market that operates on Ethereum Mainnet, as well as <a href="https://www.coingecko.com/learn/moonbeam-cross-chain-smart-contract-platform-polkadot" target="_blank">Moonbeam and Moonriver</a>, but sees most activity on Polygon. Users can directly take positions on real-world event outcomes from within MetaMask, using the stablecoin USDT to interact with the <a href="https://www.coingecko.com/learn/crypto-smart-contracts" target="_blank">smart contracts</a>.</p>
<div><img alt="Polkamarkets Dashboard" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9148/content_image9.webp" style="width: 950px; height: 535px;"></div>
<div> </div>
<h3 dir="ltr">How Does Polkamarkets Work?</h3>
<p dir="ltr">The process is the same as discussed above.</p>
<p dir="ltr"><em>For example, a prediction market on Polymarket where Ledger, the hardware wallet company, will file for bankruptcy before June 1, 2024, has a "No" share trading at 67c. This implies the market thinks there is a 67% chance it will not file for bankruptcy. If this outcome occurs (the company does file bankruptcy), all those who voted "Yes" will be paid out $1 on their 33c share. This follows the same structure of what we've seen before.</em></p>
<div dir="ltr"><img alt="Prediction Market Ledger Bankruptcy" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9149/content_image7.webp" style="width: 950px; height: 447px;"></div>
<p dir="ltr">But where Polkamarket differs is that they use an automated market maker (<a href="https://www.coingecko.com/learn/what-is-an-automated-market-maker-amm" target="_blank">AMM</a>) similar to Uniswap. This offers the advantage of constant liquidity, making markets more accessible and eliminating the need for traditional order books. Pricing will be algorithmically adjusted and incentivizes liquidity providers with a share of transaction fees.</p>
<p dir="ltr">The downside of AMMs is the risk of impermanent loss for liquidity providers when asset prices change and potential price <a href="https://www.coingecko.com/learn/slippage-crypto" target="_blank">slippage</a> in low liquidity conditions. So caution is needed when adding liquidity to these markets.</p>
<h3 dir="ltr">Getting Started on Polkamarkets</h3>
<p dir="ltr">Getting started requires knowing how to use a self-custody wallet and transferring cryptocurrency. This is a straightforward process.</p>
<p dir="ltr"><strong>Connect MetaMask Wallet</strong></p>
<p dir="ltr">Connect your MetaMask wallet to Polkamarket by following the prompts. Change your MetaMask network to one supported by Polkamarkets, such as Polygon, through the network dropdown in your wallet.</p>
<p dir="ltr"><strong>Browse or Create Markets</strong></p>
<p dir="ltr">Explore existing prediction markets on the platform or create a new one if you have a unique prediction in mind. For this you’ll need 1000 POLK tokens. </p>
<p dir="ltr">Choose a market outcome, buy shares with <a href="https://www.coingecko.com/en/coins/polkamarkets" target="_blank">POLK</a> tokens, and confirm the transaction in MetaMask.</p>
<p dir="ltr"><strong>Monitor and Sell</strong></p>
<p dir="ltr">Keep an eye on the market and sell your shares back on Polkamarkets if your prediction changes or to take profits.</p>
<p dir="ltr"><strong>Provide Liquidity (Optional)</strong></p>
<p dir="ltr">You can choose to provide liquidity to earn transaction fees, after ensuring you understand the associated risks like impermanent loss.</p>
<h2 dir="ltr">Other Notable Prediction Markets</h2>
<p dir="ltr">There are also other prediction markets available.</p>
<h3 dir="ltr">Zeitgeist: Prediction Market On Polkadot</h3>
<p dir="ltr"><a href="https://app.zeitgeist.pm/" rel="nofollow noopener" target="_blank">Zeitgeist</a> has its own prediction market which is a decentralized platform built on the Kusama network, designed to allow users to speculate on the outcomes of future events. </p>
<p dir="ltr">The market is very new and does not have a lot of liquidity. It uses its native token, <a href="https://www.coingecko.com/en/coins/zeitgeist" target="_blank">ZTG</a>, for creating markets and enabling users to buy or sell shares in the outcome of an event. Users can use Polkadot-compatible wallets such as Talisman, Polkadot.js, or SubWallet.</p>
<div dir="ltr"><img alt="Zeigeist Dasboard" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9150/content_image6.webp" style="width: 950px; height: 235px;"></div>
<div dir="ltr"> </div>
<h3 dir="ltr">Manifold Markets: Predicting for Charity</h3>
<p dir="ltr"><a href="https://twitter.com/ManifoldMarkets" rel="nofollow noopener" target="_blank">Manifold Markets</a> is a prediction site that is easy to use and has an interesting feature - it donates rewards to charities. Although Manifold does not run on the blockchain or use crypto, it uses its own digital play money called Mana (M).</p>
<p dir="ltr">All users start with M500 for free. Mana can be used to create, subsidize, and promote markets on your own questions. In addition, you can purchase more mana or convert your mana earnings into real <a href="https://manifold.markets/charity" rel="nofollow noopener" target="_blank">charitable donations</a> at a rate of M100 for $1.</p>
<p dir="ltr">Perhaps Manifold will introduce crypto to its platform in the future, or maybe not – we can bet on this prediction using Manifold. Either way, it's a win-win situation.</p>
<div dir="ltr"><img alt="Manifold Crypto Prediction Market" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9151/content_image10.webp" style="width: 912px; height: 759px;"></div>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">The key idea is that prediction markets incentivize people to reveal their true beliefs through putting money where their mouth is. As more people bet, the market prices integrate into an accurate probabilistic forecast determined by the market. This could be considered a powerful forecasting tool for events with uncertain outcomes, although the wisdom of the crowd is in some cases close to room temperature IQ.</p>
Hans Behttps://www.coingecko.com/learn/what-are-prediction-markets-cryptoWhat Are Prediction Markets in Crypto?
A crypto prediction market is a marketplace where people can buy and sell predictions and bet on the outcome of future events using cryptocurrency. By...tag:www.coingecko.com,2005:Post/8642024-01-17T00:00:00Z2024-01-18T02:15:38ZWhat Are Crypto Narratives? Top 11 Narratives for 2024 (UPDATED)<h2 dir="ltr">What Are Crypto Narratives? </h2>
<p dir="ltr">Narratives in cryptocurrency refer to the trending ideas, stories, or beliefs that shape how people perceive and value cryptocurrencies. These narratives can influence investor sentiment, market trends, and the adoption of new technologies. </p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Narratives in cryptocurrency refer to the trending ideas, stories, or beliefs that shape how people perceive and value cryptocurrencies – they can influence investor sentiment, market trends, and the adoption of new technologies. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Liquid restaking tokens, liquid staking derivatives, blockchain modularity, Layer 1s, Layer 2s (Optimistic rollups and zero knowledge rollups), BRC-20, DePIN, DeSci, GambleFi, Telegram crypto trading bots, and RWAs are some narratives to watch in 2024.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Crypto narratives can also be misleading or even harmful based on false assumptions or hype. Therefore, it's important to critically evaluate narratives and base your investment decisions on sound analysis and research.</p>
</li>
</ul>
<hr>
<div dir="ltr"><img alt="What is a narrative in crypto" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9155/content_Crypto_Narratives.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr"><em>This article was updated in January 2024 to reflect new and upcoming narratives by <a href="https://www.coingecko.com/author/coingecko" target="_blank">the CoinGecko team</a>.</em></p>
<p dir="ltr">Market participants are always looking for trends to better understand what is taking place, why it's taking place, and its potential impacts. Historically, they use the dynamics of market cycles to act more proactively in future market environments. From Elon Musk's tweets moving the price of DOGE, to believing in the <a href="https://www.coingecko.com/en/coins/bitcoin/bitcoin-halving" target="_blank">Bitcoin halving</a> driving bull runs every four years, many investors use crypto narratives to predict price action. </p>
<p dir="ltr">For example, the narrative of cryptocurrencies as a store of value has attracted many investors who view cryptocurrencies as a hedge against economic uncertainty. Similarly, the narrative of blockchain as a disruptive technology has attracted many entrepreneurs and developers working to build new applications on the <a href="https://www.coingecko.com/learn/what-is-a-blockchain" target="_blank">blockchain</a>.</p>
<h2 dir="ltr">Why Are Crypto Narratives Important?</h2>
<p dir="ltr">Crypto narratives emerge from a combination of factors, including the technological capabilities of crypto and the blockchain, social and economic events, and the beliefs and motivations of the individuals involved in the cryptocurrency industry. Mainstream media, social media, online forums, influencers, and market trends can fuel narratives. In 2024, we’re seeing a trend in narratives that explore the capabilities and application of the blockchain, such as Decentralized Physical Infrastructure Networks (DePIN) and Decentralized Science (DeSci).</p>
<p dir="ltr">Narratives are important because they play a significant role in shaping public perception and subsequently market movements. They provide a framework for people to understand the potential risks and rewards of different types of cryptocurrencies, and they can influence the trajectory of the entire cryptocurrency industry. </p>
<p dir="ltr">However, crypto narratives can also be misleading or harmful based on false assumptions or hype. As such, it's important to critically evaluate narratives and base your investment decisions on sound analysis and research.</p>
<p dir="ltr">Now, there are multiple emerging trends and themes that are trying to define 2024. We’ll look at the top 11 crypto narratives to watch in 2024 in this guide:</p>
<h2 dir="ltr">Liquid Restaking Tokens</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-restaking-crypto" target="_blank">Restaking</a> is a growing narrative that focuses on capital efficiency, by enabling users to stake the same token and other protocols to secure multiple networks simultaneously. This enables protocols to overcome the challenges in building out their own sets of validators, while offering scalable security based on the individual protocol’s needs. In exchange, restakers enjoy an additional set of rewards based on their restaking strategy as they secure additional protocols (although this comes with an additional set of slashing risks).</p>
<p dir="ltr"><a href="https://www.coingecko.com/learn/eigenlayer-restaking-ethereum" target="_blank">EigenLayer</a> is the pioneer in the restaking space, with over 3.5 million ETH in TVL at time of writing. Users can restake their liquid staking tokens, such as stETH, rETH and cbETH, to secure Actively Validated Services (AVSs) on EigenLayer. </p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/restaking" target="_blank">liquid restaking tokens</a> on CoinGecko.</p>
<h2 dir="ltr">Liquid Staking Derivatives</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-liquid-staking-liquid-staked-derivatives-you-need-to-know" target="_blank">Liquid staking derivatives (LSDs)</a> are cryptocurrencies issued by liquid staking platforms, allowing stakers a means to unlock their illiquid-staked assets and generate more yield. With standard <a href="https://www.coingecko.com/learn/crypto-staking" target="_blank">staking</a>, stakers secure proof-of-stake (PoS) blockchains by depositing assets in a protocol. But this presents the issue of capital inefficiency as stakers miss the opportunity to generate extra yield when their assets are illiquid and locked up. </p>
<p dir="ltr">This is where liquid staking comes in. The value of the derivative asset is pegged to the underlying asset (locked when staked on a proof-of-stake blockchain), where it continues to accumulate rewards and grow in value with time. Meanwhile, the derivative token can be used to engage in other DeFi activities like <a href="https://www.coingecko.com/learn/what-are-crypto-loans-and-how-do-crypto-loans-work" target="_blank">lending</a> and providing <a href="https://www.coingecko.com/learn/liquidity-crypto" target="_blank">liquidity</a>. In return, most liquid staking providers take a share of 5-10% of the staking rewards as their revenue.</p>
<p dir="ltr">LSDs solve capital inefficiency, lower staking entry barriers, and improve network security and stability.</p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/liquid-staking-tokens" target="_blank">liquid staking tokens</a> on CoinGecko. </p>
<h2 dir="ltr">Blockchain Modularity</h2>
<p dir="ltr">Older blockchains like Bitcoin and Ethereum are monolithic, where the blockchain performs all tasks. However, as the basis of competition shifts from performance to cost and flexibility, the modularity era begins. Modularization breaks down the blockchain into individual components, allowing the blockchains to scale beyond their current limits.</p>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Execution</strong>: transaction execution </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Settlement</strong>: resolution/ fraud proofs/ bridge between other execution layers </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Consensus</strong>: agreement on the order of transactions </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation"><strong>Data Availability</strong>: providing accessible data for all network participants </p>
</li>
</ul>
<p dir="ltr">Execution takes place on Layer 2s like Optimism and Arbitrum, which execute and send batched transactions to the parent chain. Even Layer 2s are becoming modular, as seen in the OP Stack, which modularizes all elements of a Layer 2 chain into standardized open-source modules, which developers can use to build new chains. </p>
<p dir="ltr">Meanwhile, EigenDA is a decentralized data availability layer built on Ethereum, and it is currently used by Mantle, a Layer 2 chain to provide data availability. </p>
<p dir="ltr">Layer 1s like Celestia are also adopting a modular architecture to their blockchain. In the case of Celestia, it focuses on consensus and data availability, optimizing storage. This lets Layer 2s built on Celestia focus on building the optimum execution environment for their applications.</p>
<h2 dir="ltr">Layer 1s</h2>
<div dir="ltr"><img alt="Layer 1s and Layer 2s on Ethereum" loading="lazy" src="//s3.amazonaws.com/assets.coingecko.com/app/public/ckeditor_assets/pictures/6283/content_Twitter_PoR_Roll_Out_%2814%29.png" style="width: 952px; height: 544px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/en/categories/layer-1" target="_blank">Layer 1s</a> are the fundamental base architectures upon which other blockchain applications, like <a href="https://www.coingecko.com/learn/crypto-smart-contracts" target="_blank">smart contracts</a>, are built. They perform most on-chain transactions and act as public blockchains' sources of truth. Traditional L1 blockchains, like <a href="https://www.coingecko.com/en/categories/ethereum-ecosystem" target="_blank">Ethereum</a>, tend to experience slow transaction speeds, low scalability, and high gas fee issues. This is where Layer 2 blockchains come in, as they handle the execution of transactions, leaving the L1 to focus on issuing and verifying these transactions on the blockchain. However, new L1 networks are changing the game regarding transaction speed, cost, and interoperability. </p>
<p dir="ltr">Below are some examples of L1 projects to keep an eye on as the Layer 1 narrative heats up:</p>
<h3 dir="ltr">Celestia </h3>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/celestia" target="_blank">Celestia</a> is the "first modular blockchain network to power scalable, secure web3 apps." It does this by "decoupling consensus from the execution layer," where Celestia fulfills the core function of a consensus system, which is to order transactions and ensure their availability, leaving executing and validating transactions to the clients that run on Celestia. Celestia aims to enable projects to seamlessly deploy their own networks without the need to bootstrap a new consensus. Moreover, the project has an impressive team led by Mustafa Al-Bassam, who has a Ph.D. in blockchain scaling. </p>
<h3 dir="ltr">Sui</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/sui-blockchain-crypto" target="_blank">Sui</a> is a "boundless platform to build rich and dynamic on-chain assets from gaming to finance." It's the first permissionless L1 network designed from the bottom to help creators and developers create experiences that serve the upcoming billion users in web3. Sui was established by a team of former Meta engineers operating as Mysten Labs.</p>
<p dir="ltr">Sui scales horizontally with no upper limit to meet application demand while ensuring cost-effective transaction costs. Furthermore, it significantly improves scalability by facilitating parallel agreement on simple transactions, like minting and transferring a <a href="https://www.coingecko.com/en/categories/non-fungible-tokens-nft" target="_blank">non-fungible token (NFT)</a>. Complex transactions, like asset management and DeFi applications, are processed by <a href="https://github.com/MystenLabs/narwhal" rel="nofollow noopener" target="_blank">Narwhal and Bullshark</a> DAG-based mempool and Byzantine Fault Tolerant (BFT) consensus.</p>
<h2 dir="ltr">Layer 2s: Optimistic Rollups</h2>
<p dir="ltr">The <a href="https://www.coingecko.com/learn/vertical-scaling" target="_blank">vertical scaling narative</a> is focused on <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols">Layer 2s</a>, which are protocols built on top of L1s to scale and grow them further. They minimize computations of L1s by moving transactions off-chain, significantly improving their throughput. L2s total value locked (TVL) has been steadily growing, snubbing the overall DeFi market sentiments and the total cryptocurrency market capitalization. </p>
<p dir="ltr">Optimistic rollups are L2 scaling solutions that strive to increase transaction throughput and lower fees while maintaining the security guarantees of the underlying blockchains. They leverage a trust-based model to confirm transactions off-chain and add them to the underlying blockchain after being confirmed by a small group of “witnesses.”</p>
<div dir="ltr"><img alt="" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9153/content_TVL_Layer_2.webp" style="width: 950px; height: 385px;"></div>
<p dir="ltr">Source: <a href="https://l2beat.com/scaling/tvl">Beat</a></p>
<p dir="ltr">Below are some L2 optimistic rollups projects to continue watching in 2024 (sorted by TVL):</p>
<h3 dir="ltr">Arbitrum </h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/arbitrum-ecosystem-bridge-airdrop" target="_blank">Arbitrum</a> is an L2 scaling solution leveraging optimistic rollups to achieve high throughput and lower user transaction costs. Even after <a href="https://www.coingecko.com/learn/ethereum-upgrades-understanding-the-merge-and-ethereum-2" target="_blank">The Merge</a>, Ethereum's speed and gas fees are still high compared to other networks, like Arbitrum. This has led many web3 users and creators to shift networks, causing Arbitrum's TVL to hit highs of $3.2B in November 2021. </p>
<p dir="ltr">The recent <a href="https://www.coingecko.com/en/coins/arbitrum" target="_blank">ARB</a> airdrop has injected much liquidity into the Arbitrum network. Many users who received ARB tokens were incentivized to use them to trade, stake, or provide liquidity on various decentralized exchanges and protocols built on the Arbitrum network. The airdrop has also helped to increase awareness of the Arbitrum network and its potential as an L2 scaling solution for Ethereum. </p>
<h3 dir="ltr">Optimism </h3>
<p dir="ltr"><a href="https://www.coingecko.com/en/categories/optimism-ecosystem" target="_blank">Optimism</a> defines itself as a "fast, stable, and scalable L2 protocol developed by Ethereum developers, for Ethereum developers." It's designed as a minimal extension to the current Ethereum blockchain to scale Ethereum applications seamlessly. Unlike the more common EVM-compatible chains, Optimism is EVM-equivalent, which means that Optimism is in full compliance with the formal specifications of the Ethereum blockchain, where Optimism moves in accordance with Ethereum. Optimism has also released the <a href="https://www.coingecko.com/learn/optimism-superchain-interoperability-ethereum" target="_blank">OP Stack</a>, which modularizes elements of a Layer 2 chain so that developers can build new chains that interoperable with Optimism. In August 2022, Optimism saw its TVL hit a high-time high of $1.15B, according to <a href="https://defillama.com/chain/Optimism" rel="nofollow noopener" target="_blank">Defillama</a>. </p>
<h3 dir="ltr">Base</h3>
<p dir="ltr">In February 2023, Coinbase launched <a href="https://www.coingecko.com/learn/base-coinbase-layer-2" target="_blank">Base</a>, an L2 blockchain designed to serve millions of upcoming web3 users using Optimism's OP Stack. The network will provide a secure, cost-effective, developer-friendly solution for creators to build web3 applications. Furthermore, Coinbase has created the Base Ecosystem Fund to support Base startups. </p>
<h2 dir="ltr">Layer 2s: ZK Rollups</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/zero-knowledge-proofs-and-zk-rollups" target="_blank">Zero knowledge</a> rollups (ZK rollups) are Layer 2 scaling solutions that improve Layer 1 throughput by taking computation and state storage off-chain. This way, they can process numerous transactions in batches and post summary data on-chain. Zero knowledge rollups allow you to prove knowledge of something without revealing it. This makes them an attractive solution for applications where privacy is paramount, such as digital identity verification and confidential transactions. </p>
<p dir="ltr">Here are examples of ZK rollups to watch out for in 2024:</p>
<h3 dir="ltr">zkSync Era</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-zksync" target="_blank">zkSync Era</a> is another L2 rollup that leverages zero-knowledge proofs to scale Ethereum without sacrificing security and decentralization aspects. It processes computations and stores most data off-chain. Using zkSync, you enjoy the Ethereum security but at a higher transaction speed and lower cost. </p>
<h3 dir="ltr">Polygon zkEVM </h3>
<p dir="ltr">Polygon has launched its <a href="https://polygon.technology/polygon-zkevm" rel="nofollow noopener" target="_blank">zero-knowledge Ethereum virtual machine (zkEVM)</a> Mainnet Beta on March 27, 2023, which is a big step towards scaling Ethereum and achieving mainstream web3 adoption. Like Optimism, the Polygon zkEVM is EVM-equivalent, which means that most Ethereum-native applications can function on the zkEVM and developers do not need to modify or reimplement code.</p>
<h3 dir="ltr">Scroll</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/scroll-airdrop" target="_blank">Scroll</a> is an L2 solution striving to offer unlimited scalability, high throughput, full decentralization, and trust-minimal privacy. It aims to achieve this by leveraging ZK rollup and high-performance off-chain decentralized systems. </p>
<h3 dir="ltr">Taiko</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/taiko-ethereum-equivalent-decentralized-zk" target="_blank">Taiko</a> is a zero-knowledge Layer 2 is designed to be the most Ethereum-equivalent ZK-rollup, providing dApps a scalable and efficient platform without having to make any changes to their existing protocol. Unlike many other zero-knowledge Layer 2s, Taiko is focused on achieving complete compatibility with Ethereum over the speed of ZK-proof generation, which enables the reuse of execution clients with minimal adjustments. To try out Taiko, you can participate in their <a href="https://www.coingecko.com/learn/taiko-tko-token-airdrop" target="_blank">protocol usability tests</a> on their testnet. </p>
<h3 dir="ltr">Bitcoin: Ordinals and BRC-20 Tokens</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/bitcoin-ordinals-nft" target="_blank">Ordinals</a> are among the latest trends taking Bitcoin by storm. In January 2023, software engineer Casey Rodarmor deployed the Ordinals protocol on the Bitcoin blockchain, enabling NFT minting on the mainnet. The move spiked mixed reactions from the Bitcoin community. Some saw the move as a threat to the Bitcoin blockchain, while others were excited and started crafting Inscriptions – Bitcoin's version of NFTs. </p>
<p dir="ltr">Just like NFTs, Ordinal Inscriptions are digital assets inscribed on a Satoshi, the smallest denomination of a BTC. However, unlike an NFT which utilizes a decentralized file storage system, Ordinals are directly stored on-chain. The inscriptions are made possible by the <a href="https://decrypt.co/86027/bitcoins-biggest-upgrade-since-2017-taproot-just-went-live" rel="nofollow noopener" target="_blank">Taproot upgrade</a> introduced into the Bitcoin blockchain in November 2021. </p>
<p dir="ltr">The number and order of BTC Ordinals have been closely monitored, and there are some <a href="https://www.coingecko.com/learn/top-ordinal-projects" target="_blank">noteworthy collections</a> and high-priced sales made so far. They include Ordinal Punks, Taproot Wizards, Bitcoin Rocks, Timechain Collectibles, Ordinal Loops, Ripcashe's Power Source, Bitcoin Shrooms, The Shadow Hats, The Dan Files, and Toruses.</p>
<p dir="ltr">To date, there are almost 55.8 million Ordinal inscriptions on the Bitcoin blockchain.</p>
<div dir="ltr"><img alt="NFT Ordinals Inscriptions Jan 2024" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9154/content_NFT_Ordinals_Inscriptions_Jan_2024.webp" style="width: 950px; height: 608px;"></div>
<p dir="ltr"><span style="font-size:11px;">Source: https://dune.com/dgtl_assets/bitcoin-ordinals-analysis </span></p>
<p dir="ltr">Beyond Ordinals, there has also been an interest in <a href="https://www.coingecko.com/learn/brc-20-tokens" target="_blank">BRC-20 tokens</a>, which uses ordinal inscriptions to enable the minting and transfer of fungible tokens on the Bitcoin blockchain. BRC-20 tokens are similar to the ERC-20 token standard on Ethereum and EVM networks. BRC-20 tokens are minted by the community, where Ordinal wallets can freely mint BRC-20 tokens once they are deployed. While still in the early stages, there are platforms that enable the decentralized minting and trading of BRC-20 tokens. </p>
<p dir="ltr">There has been a surge in interest in BRC-20 tokens in December 2023, leading to a high of over $27 average transaction fee in December 2023.</p>
<h2 dir="ltr">Decentralized Physical Infrastructure Networks (DePIN)</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/depin-crypto-decentralized-physical-infrastructure-networks" target="_blank">DePIN</a> refers to decentralized physical infrastructure networks, which use blockchains and token rewards to develop infrastructure in the physical world across different fields, such as wireless connectivity, geospatial mapping, mobility, health, energy, and more. </p>
<p dir="ltr">The goal of DePIN is to create resource-efficient physical infrastructure through incentivizing providers to commit their physical resources to a decentralized network. The DePIN then makes these resources available to users who are looking for cheaper service charges (relative to centralized facilities), and the network generates revenue through fees paid by the users.</p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/depin" target="_blank">DePIN tokens</a> on CoinGecko.</p>
<h2 dir="ltr">Decentralized Science (DeSci)</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-is-desci-decentralized-science" target="_blank">DeSci</a> refers to decentralized science, which uses blockchain technology and its features to make various aspects of scientific research and collaboration more open, incentivized, and community driven. DeSci aims to overcome the ‘valley of death’ in scientific research, where it takes time to develop and translate scientific research into innovations that benefit patients.</p>
<p dir="ltr">Decentralized science is focused on improving the following areas: data sharing, research and publishing, and funding. It does this through incentivizing users with tokens, utilizing NFTs that can be used as a key to the underlying project, and DAOs which can distribute funds and control processes. </p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/decentralized-science-desci" target="_blank">DeSci tokens</a> on CoinGecko.</p>
<h2 dir="ltr">GambleFi</h2>
<p dir="ltr">GambleFi refers to decentralized applications that provide crypto-based betting services. These applications are bringing online gambling on-chain to improve the user experience, focusing on transparency and fairness. Moreover, in GambleFi, users can now stand on the same side as the house, as they can hold the protocol’s tokens and profit from the protocol’s generated revenue. </p>
<p dir="ltr">The GambleFi narrative took off during the bear market, and it will be interesting to see how it develops when the bull market comes. </p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/gambling" target="_blank">GambleFi tokens</a> on CoinGecko</p>
<h2 dir="ltr">Real World Assets</h2>
<p dir="ltr"><a href="https://www.coingecko.com/learn/what-are-real-world-assets-exploring-rwa-protocols" target="_blank">Real World Assets (RWAs)</a> are assets existing in the physical world or off-chain but are tokenized and transferred on-chain to act as a source of yield in DeFi. These include real estate, precious metals, commodities, and art. RWAs are a core element of the global financial system; in 2020, for example, global real estate was valued at <a href="https://www.savills.com/impacts/market-trends/the-total-value-of-global-real-estate.html" rel="nofollow noopener" target="_blank">$326.5T</a> while the gold market cap stood at <a href="https://companiesmarketcap.com/gold/marketcap/#:~:text=Gold's%20Market%20Cap&text=The%20Market%20Capitalization%20of%20Gold%20is%20currently%20arround%20%2412.389%20T." rel="nofollow noopener" target="_blank">$12.39 T</a>. A growing portion of RWAs are focused on the leveraging US Treasury Bills and high interest rates as a way to offer investors lower-risk yields, including companies such as <a href="https://www.coingecko.com/learn/ondo-finance-crypto" target="_blank">Ondo Finance</a>. </p>
<p dir="ltr">MakerDAO has also entered the RWA space by deploying idle assets into short-term bonds, using the proceeds to ramp up an <a href="https://www.coingecko.com/en/coins/maker">MKR</a> buyback program and bolster the DAI Savings Rate, providing a clear example of how protocols could benefit from RWA investments. MakerDAO shows how value can flow to token holders, where the buyback program is driving growth of MakerDAO. </p>
<p dir="ltr">The potential impact that RWAs can have on DeFi seems huge:</p>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">They can provide a source of sustainable and reliable yield to DeFi, as they are backed by traditional assets.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">They can help DeFi to become more compatible with the traditional financial markets, ensuring more liquidity, capital efficiency, and investment opportunities. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">They can bridge the gap between DeFi and traditional finance (TradFi).</p>
</li>
</ul>
<p dir="ltr"><a href="https://www.coingecko.com/en/coins/maple" target="_blank">Maple Finance (MPL)</a>, <a href="https://www.coingecko.com/en/coins/goldfinch" target="_blank">Goldfinch (GFI)</a>, and <a href="https://www.coingecko.com/en/coins/centrifuge" target="_blank">Centrifuge (CFG)</a> are other examples of RWAs that focus on RWA lending that you can have a look at.</p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/real-world-assets-rwa" target="_blank">RWA tokens</a> on CoinGecko</p>
<h2 dir="ltr">Telegram Trading Bots</h2>
<p dir="ltr">In 2023, there was also a rise in <a href="https://www.coingecko.com/learn/telegram-crypto-trading-bots" target="_blank">Telegram crypto trading bots</a> that offer users convenience and efficiency when it comes to executing trades. Instead of needing a computer to connect your wallet and approve transactions, all users need to do to buy tokes is to copy and paste the token's contract address and send it as a chat to buy the token. This also speeds up the selling process, as you can pre-approve and sign transactions. </p>
<p dir="ltr">Some Telegram trading bots also come with additional features like multi-wallet sniping that bypasses individual wallet restrictions on tokens, and liquidity sniping that executes a buy order once the bot detects liquidity being added to maximize gains on a new token.</p>
<p dir="ltr">Learn more about the different Telegram crypto trading bots and their features in our article on the <a href="https://www.coingecko.com/learn/top-telegram-trading-bots" target="_blank">Top 5 Telegram Trading Bots</a>. </p>
<p dir="ltr">Check out the top <a href="https://www.coingecko.com/en/categories/telegram_apps" target="_blank">Telegram apps tokens</a> on CoinGecko.</p>
<h2 dir="ltr">Conclusion</h2>
<p dir="ltr">In 2023, we saw narratives like Artificial Intelligence, Chinese tokens, and decentralized social media, alongside other narratives like Layer 1s, Layer 2s, liquid staking derivatives, real-world assets, and Bitcoin Ordinals and BRC-20. Moving into 2024, there are new emerging narratives like restaking, DePIN, DeSci, GambleFi, along with an interest in blockchain modularity. </p>
<p dir="ltr">Remember, this article is only for educational purposes and should not be taken as financial advice. Please do your own research (DYOR) before investing in any asset. </p>
Josiah Makorihttps://www.coingecko.com/learn/crypto-narrativesWhat Are Crypto Narratives?
Narratives in cryptocurrency refer to the trending ideas, stories, or beliefs that shape how people perceive and value cryptocurrencies. These narratives can influen...tag:www.coingecko.com,2005:Post/12002024-01-16T13:29:00Z2024-01-16T07:00:17ZWhat Is Restaking and How It Enables Capital Efficiency<p><meta charset="utf-8"></p>
<h2 dir="ltr">What Is Restaking?</h2>
<p dir="ltr">Restaking is a growing narrative focused on capital efficiency, where users can stake the same tokens on the main blockchain and other protocols, securing multiple networks at once. Restaking offers users additional rewards for securing additional protocols, in exchange for undertaking increased slashing risks. </p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Restaking lets users stake the same tokens on the main blockchain and other protocols, securing all these networks at once. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">While this opens up more risk of slashing, restakers receive higher staking rewards for undertaking more risk. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Restaking is a resource management approach to decentralized staking pioneered by EigenLayer. Protocols in this sector use Liquid Restaking Tokens (LRT), a flexible version of staked tokens to extract more value from staked tokens in a way that is beneficial for stakers, other networks, and the restaking protocol itself.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Restaking is a growing narrative and many projects are exploring the best ways to utilize restaking resources or play a role as a restaking resource provider.</p>
</li>
</ul>
<hr>
<div dir="ltr"><img alt="what is restaking crypto" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9140/content_What_is_Restaking_crypto_.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr">Blockchain security architecture falls into two broad categories: Proof of Work (PoW) or Proof of Stake (PoS). In the case of PoS networks, assets are committed to the network’s security infrastructure through a process known as <a href="https://www.coingecko.com/learn/crypto-staking" target="_blank">staking</a>. Stakers lock their assets with a validator node on the network, where the security level of the network depends on the number of active validators, the percentage of the total circulating tokens that are staked, and how these tokens are spread across active validators.</p>
<p dir="ltr">To improve the utility for these staked tokens, which are usually lying dormant, restaking protocols have emerged to put these tokens to use. The best known example of this is <a href="https://www.eigenlayer.xyz/" target="_blank">EigenLayer</a>, which lets protocols leverage Ethereum’s trust network without needing to establish their own validator sets.</p>
<h2 dir="ltr">Understanding Restaking</h2>
<p dir="ltr">As the name suggests, ‘restaking’ means that an asset is staked again after the initial staking. Restaking makes a staked asset available for staking on another staking program or platform, improving the utility of the staked asset and offering the holder an additional set of rewards (albeit with added slashing risks). </p>
<p dir="ltr">Let’s look at Ethereum as an example. The Ethereum network is one of the most secure PoS networks due to the density of validators and the spread of staked assets across these validators. However, as mentioned above, the staked ETH is lying dormant on Ethereum, which has given rise to <a href="https://www.coingecko.com/learn/what-is-liquid-staking-liquid-staked-derivatives-you-need-to-know" target="_blank">liquid staking derivatives</a>, where the staked ETH is turned into liquid staked derivative tokens that can be used in DeFi. Moreover, liquid staking derivatives don’t have minimum staking requirements unlike native staking which requires 32ETH, enabling smaller holders to benefit from staking rewards.</p>
<p dir="ltr">Restaking takes this one step further. Restaking protocols make it possible for other decentralized protocols to utilize staked assets on Ethereum to improve their own security. Validators and assets who are contracted for this purpose are rewarded according to the validator incentivization terms of the renting protocol or platform. The validator and the nominator stakers earn multiple rewards; from the parent Ethereum network and from the network or protocol they are restaked to. Here’s how it works,</p>
<h2 dir="ltr">How Restaking Works</h2>
<p dir="ltr">Restaking lets users stake the same coins on both the main network and other protocols, securing all of these networks at once. There are different types of restaking options available:</p>
<p dir="ltr"><strong>Native restaking</strong> on EigenLayer is only open to users who operate an Ethereum validator node. <a href="https://docs.eigenlayer.xyz/assets/files/EigenLayer_WhitePaper-88c47923ca0319870c611decd6e562ad.pdf">Native restaking works via a set of smart contracts</a> that guide the management of assets staked under a validator’s node and the crypto-economic security that restaking protocols offer. Validators who wish to commit their setup to a restaking program will be expected to download and run additional node software required for the restaking module. When this is done, the validators agree to the restaking terms of EigenLayer including an additional slash condition.</p>
<p dir="ltr">Another form of restaking is <strong>liquid restaking</strong>, which utilizes liquid staking tokens (LST). Here, a staker stakes their assets with a validator and receives a token that represents their stake with the validator. The staker then proceeds to stake the LST on the restaking protocol. At time of writing, liquid restaking deposits on EigenLayer are currently paused.</p>
<p dir="ltr">Once the tokens are deposited with the restaking protocol, users can then explore available dApps to re-stake their tokens. These dApps are known on EigenLayer as Actively Validated Services (AVSs), and can acquire security infrastructure through restaking.</p>
<p dir="ltr">The validator and the nominator stakers in their nodes earn extra rewards, relative to how many extra protocols are being validated. According to EigenLayer, systems that can use such services include data availability layers, new virtual machines, keeper networks, oracle networks, <a href="https://www.coingecko.com/learn/crypto-bridges-blockchain-interoperability" target="_blank">bridges</a>, threshold cryptography schemes, and trusted execution environments. However, at time of writing, these services are not available yet for restaking.</p>
<h2 dir="ltr">Benefits of Restaking</h2>
<p dir="ltr">Restaking turns pooled resources into ‘flexible assets’ that can be rented at will and by diverse systems. This offers several benefits, such as;</p>
<h3 dir="ltr">Improved Rewards for Stakers</h3>
<p dir="ltr">At time of writing, Ethereum offers a 3.6% yield on solo staked assets, while LSTs offer a range of 3.08% to 4.06%. Once this is restaked on a restaking protocol, users will be able to earn additional rewards based on their restaking strategy as they secure additional protocols. </p>
<h3 dir="ltr">Cold Start Security for New Protocols and Networks</h3>
<p dir="ltr">New AVS like data layers and <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols" target="_blank">Layer 2</a> networks face an uphill climb in developing a sufficient security system, especially in the early stages. Restaking enables these protocols to strengthen their security, as they gain access to a larger set of validators. Restaking also presents a cost-efficient way of doing this since the new network will have to worry less about providing the infrastructure for its security system.</p>
<h3 dir="ltr">Promotes Scalable Security Based on Protocol Needs</h3>
<p dir="ltr">With restaking services, a protocol can achieve elastic security, scaling in and out in response to network demands. Thanks to a readily available rental service for security, a protocol can scale up its security during demanding conditions by contracting validators in a restaking protocol, subsequently scaling down when the network returns to normal conditions. Again, this is a cost-effective approach to network security scaling.</p>
<h2 dir="ltr">Potential Risks of Restaking</h2>
<p dir="ltr">Restaking is a novel concept and operates via complicated underlying technology, while this offers several benefits as already discussed, it also poses some risk to the parent network, the renting network, and the stakers as well. Some of these potential risks include;</p>
<h3 dir="ltr">Slashing</h3>
<p dir="ltr">Restaking terms include extra slash conditions in exchange for increased rewards. Depending on the terms set by the protocol, slashing could result in the loss of a significant percentage of assets staked by a validator. Stakers who opt in are committed to following the rules of the contract and will be subjected to the slash penalty if they behave maliciously. </p>
<h3 dir="ltr">Yield Risks</h3>
<p dir="ltr">While the idea of EigenLayer is to enable protocols to leverage Ethereum for security, restakers are incentivized by the reward system of the protocol they are staking their assets with. This means that restakers may opt for protocols with the highest yield to maximize their returns. There is also the concern that investors will view restaking as a <a href="https://cointelegraph.com/magazine/ethereum-restaking-blockchain-dangerous">quick, easily leveraged financial product</a>, potentially impacting the Layer 1 network.</p>
<h3 dir="ltr">Impact on the Layer 1 Blockchain</h3>
<p dir="ltr">Vitalik Buterin, co-founder of Ethereum, has highlighted one of the risks of restaking, where protocols rely on Ethereum’s social consensus for a fork or re-org in the event of major losses, leading to conflict around which version of the Layer 1 is canonical. As a solution, Sreeram Kannan, founder of EigenLayer, agrees that applications that reuse Ethereum’s validator set should not be bailed out by the Layer 1’s social consensus.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Do not:<br>
<br>
a) don’t build complex financial primitives on restaking - they can spiral out<br>
b) don’t rely on Ethereum to fork for application layer errors - this is a super important principle<br>
c) do not use subjective slashing - as it is subject to tyranny of the dishonest majority</p>
— Sreeram Kannan (@sreeramkannan) <a href="https://twitter.com/sreeramkannan/status/1660388939369431042?ref_src=twsrc%5Etfw">May 21, 2023</a>
</blockquote>
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<h2 dir="ltr">Restaking Protocols to Watch</h2>
<p dir="ltr">Restaking is a rising narrative, and holders are exploring restaking opportunities to maximize their yield. Here are some protocols in the restaking space: </p>
<h3 dir="ltr">EigenLayer: Restaking on Ethereum</h3>
<p dir="ltr">EigenLayer enables crypto-economic security on the Ethereum blockchain by designing a middleware that turns staked ETH into commodities that can be rented by other protocols to secure them. </p>
<p dir="ltr">Stakers can commit their native Ethereum tokens or Liquid Staking Tokens (LST) to EigenLayer to offer additional security services to AVSs on the Ethereum blockchain and earn extra rewards from the protocols their assets are restaked to.</p>
<div dir="ltr"><img alt="EigenLayer Restaking" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9136/content_eigen_layer.webp" style="width: 950px; height: 501px;"></div>
<p dir="ltr">LSTs from yield protocols and validators like Ankr (ankrETH), Binance (wbETH), Origin (oETH), Lido (stETH), and Coinbase (cbETH) can be staked on the Eigenlayer restaking protocol under Liquid Restaking. Validators who opt into the restaking program agree to Eigenlayer’s terms, including additional slashing conditions for validators who default. According to data from Eigenlayer, over 600,000 native and LST ETH are staked on Eigenlayer’s restaking protocol at the time of writing.</p>
<p dir="ltr">At time of writing, there are no services built on EigenLayer for restakers to secure, so restakers currently earn restaked points.</p>
<h3 dir="ltr">Pendle Finance: Distributing Restaking Yield To Liquidity Providers</h3>
<div dir="ltr"><img alt="Pendle Restaking Yield" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9137/content_pendle_%282%29.webp" style="width: 950px; height: 417px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/learn/pendle">Pendle Finance</a> has been exploring the most effective ways to manage yield. Pendle Finance’s yield tokenization concept splits yield-bearing tokens (PT) and the yield they bear (YT), allowing yield farmers to have more control over the interest they earn. In line with its goal, Pendle Finance is expanding into the restaking sector. From available information, it will be adopting EigenLayer and Eigenlayer’s liquid restaking concept to offer users even more yield.</p>
<p dir="ltr">According to Pendle Finance, this will work in synergy with its yield tokenization concept and with Etherfi’s eETH. ETH will be staked on EtherFi to obtain eETH, a LST (Liquid Staking Token). The Yield Token eETH (YT-eETH) will be restaked to Eigenlayer. The restaked tokens will earn EigenLayer points, Etherfi loyalty points, restaking yield, and Ethereum native yields.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Pendle LPs of eETH will continue earning all the native rewards of eETH:<br>
☑️ EigenLayer Points<br>
☑️ EtherFi Loyalty Points<br>
☑️ ETH Staking Yield<br>
☑️ Restaking Yield (once live)<br>
<br>
With additional yield streams from Pendle on top:<br>
✅ Swap Fees<br>
✅ PENDLE Incentives<br>
✅ PT-eETH Fixed Yield</p>
— Pendle (@pendle_fi) <a href="https://twitter.com/pendle_fi/status/1745067050530463852?ref_src=twsrc%5Etfw">January 10, 2024</a>
</blockquote>
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<h3 dir="ltr">Renzo Protocol: Strategy Manager for EigenLayer</h3>
<div dir="ltr"><img alt="Renzo Protocol - EigenLayer Strategy Manager" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9139/content_Renzo_Protocol_-_EigenLayer_Strategy_Manager.webp" style="width: 950px; height: 473px;"></div>
<p dir="ltr">Renzo is a strategy manager for Eigenlayer, where the protocol helps users to manage their restaking strategy on EigenLayer. As every AVS offers a different set of rewards and slashing risks, it becomes increasingly challenging for users to manage their restaking strategies as more AVSs join the network. </p>
<p dir="ltr">Renzo's ezETH is the liquid restaking token that represents a user's restaked position, and users can deposit liquid staking tokens (stETH, rETH, cbETH) in exchange for ezETH. By depositing their liquid staking tokens with Renzo, users can get around the liquid restaking limits on EigenLayer and earn EigenLayer restaking points. </p>
<h3 dir="ltr">Picasso: Restaking on Solana</h3>
<div dir="ltr"><img alt="Picasso: Restaking on Solana" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9138/content_picasso.webp" style="width: 950px; height: 391px;"></div>
<p dir="ltr"><a href="https://picasso.xyz/">Picasso claims to be bringing restaking to the Solana blockchain</a>. Restaking protocols are only available on the Ethereum blockchain at the time of writing thanks to EigenLayer, however, Picasso hopes to deploy a similar solution on the Solana network. The restaking protocol will power the <a href="https://www.trustless.zone/">Trustless’ IBC connection</a> as the crypto-economic security will be leveraged by validators on the interoperability protocol. </p>
<p dir="ltr"><a href="https://medium.com/@Picasso_Network/restaking-is-coming-to-solana-via-picasso-5ea0b027d269">According to the project</a>, it will adopt an approach similar to what Eigenlayer has done so far with liquid restaking. According to Picasso, LST tokens like Marinade Staked Solana (mSOL) and jitoSOL will be accepted by the restaking contract in addition to native Solana and LP tokens of decentralized exchanges on the network like ORCA. Stakers can commit their asset to the protocol via a portal provided by Trustless and receive extra yields relative to rewards specification by the IBC interoperability protocol.</p>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">The goal of restaking is simple; more value for stakers and other protocols, including the restaking resource provider itself. Prior to technologies like this, staked assets were locked away and committed to a single cause in a single protocol. Restaking changes this and is in fact, a capital efficient resource management technique. Stakers provide more service with a single stake and earn more rewards for this role, as restaking protocols turn staked assets into flexible assets that can be committed to other rewarding ventures. For PoS-staked assets, restaking pursues improved security across multiple protocols by making the PoS security layer a ‘commodity’. This is in the sense that other protocols and networks can borrow this facility to develop or reinforce their security. As this idea continues to be improved, we could see even more exciting use cases for staked assets via restaking protocols.</p>
<p dir="ltr">That being said, it is important to understand the mechanics of any restaking protocol and how these basics affect you as a staker. Stakers should also understand that this concept is still in its early stages and that the narrative is still in development. Also, note that this article should not be taken as financial advice. Before investing in any protocol, always do your own research and ensure you understand the risks associated with them.</p>
Joel Agbohttps://www.coingecko.com/learn/what-is-restaking-crypto
What Is Restaking?
Restaking is a growing narrative focused on capital efficiency, where users can stake the same tokens on the main blockchain and other protocols, securing multiple network...tag:www.coingecko.com,2005:Post/12022024-01-16T10:02:18Z2024-01-16T10:27:09ZThe Intersection of AI and Crypto<p>The artificial intelligence industry has been making headlines lately, for reasons good and bad. While you’re probably well aware of the recent drama surrounding OpenAI and have maybe explored the capabilities of existing artificial intelligence technology, you probably haven’t thought much about how artificial intelligence can interact with blockchain-based systems. In this week’s report we’ll be covering a handful of existing applications attempting to leverage both artificial intelligence and blockchain technology, along with some information concerning the future of these apps and the artificial intelligence industry in the years to come.</p>
<p> </p>
<hr>
<h2>Key Takeaways</h2>
<ul>
<li>AI has recently been making waves in the tech industry, but many may not yet be familiar with the role crypto can play in enabling AI applications and help solve some of the pertinent challenges faced by AI today. </li>
<li>
<p>One of the key areas is in data management and security. AI systems require vast amounts of data to learn and improve. Through blockchains, training data can be shared across different platforms and stakeholders, enabling more avenues for collaboration in AI research and development. Crypto can also be used to incentivize the sharing of AI data to foster a more inclusive ecosystem.</p>
</li>
<li>
<p>AI can in the future power DAOs, which currently still require human participation and financial incentives. AI can lead to the creation of truly fully automated DAOs.</p>
</li>
<li>
<p>Crypto can also lead to the creation of decentralized AI models and democratize access to AI technologies, allowing individuals and small entities to access AI tools and services that were previously the domain of large corporations.</p>
</li>
<li>
<p>The report highlights several projects, such as Bittensor, Akash Network, Render, Gensyn Network and Fetch.ai as prominent examples of projects working at the intersection of AI and crypto.</p>
</li>
</ul>
<hr>
<p> </p>
<p><img alt="" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9141/content_COPY_PLACEHOLDER_%281%29.webp" style="width: 950px; height: 475px;"></p>
<h2>What is AI and how does it relate to crypto?</h2>
<p>Before we get into project specifics and some of the more technical details, it’s important to cover some of the basics around artificial intelligence technology and how the talented teams and individual developers within the industry have got us to today.</p>
<p>There’s a strong chance you are already familiar with ChatGPT, the most popular and widely recognized consumer-facing AI application that has consumed the tech industry’s attention over the last year - today we’ll briefly explain the concepts underpinning this technology and how it’s able to perform so competently at, well, basically everything it’s asked to compute.</p>
<p>The core piece of technology powering ChatGPT and other consumer chat-based models is what’s known as the large language model, otherwise known as an LLM. These complicated pieces of AI tech are essentially a combination of deep learning techniques / algorithms and very large data sets that work together to create an artificial intelligence model capable of predicting and summarizing knowledge.</p>
<p>Interactions between humans and LLMs are handled via natural language, with most LLMs being built specifically with natural language processing (NLP) in mind. A user asks a chatbot to answer some type of question in natural language, with the chatbot then using its underlying technology, training data and capabilities to provide an answer to the user as best as it can.</p>
<p>LLMs are built upon transformer models, commonly referred to as transformers. These are a type of neural network that excel at predicting text and learning the context behind words. Because LLMs that use transformer models excel at NLP, they’re able to work really well for common tasks that humans need everyday, things like solving math problems, generating code templates or even writing shorter reports or suggesting edits.</p>
<p>Because of this, chatbots like ChatGPT, Microsoft Bing AI and Claude have seen immense success and have almost single handedly sparked an AI revolution. While many believe that AI systems might eventually gain capabilities and intelligence greater than humans, there is little evidence to suggest that this will happen anytime soon. Regardless, the possibilities that come from these models integrating with human workflows and the extremely promising existing capabilities prove that AI is here to stay, whether we all like it or not. But you’re probably wondering how these models can fit in with crypto and the permissionless nature of blockchains, so let’s explain the potential synchronicities and examine these two radical forms of technology.</p>
<p> </p>
<h2>How can crypto help enable AI applications?</h2>
<p>The crypto industry is one that’s consistently discussed on the news, in large media outlets and across other social media platforms every single day. What started with a single whitepaper written by Satoshi in 2008 has transformed into a $1.5 trillion market with a flurry of looming ETF approvals or denials from the largest financial institutions in the world.</p>
<p>It’s often difficult to describe the innate benefits of blockchain technology to industry outsiders, mainly because the financial industry is very well developed and smooth in the majority of first world countries. Outside of places like the United States, it’s much easier to explain and show the power of permissionless ledgers for financial transactions, largely due to the corrupt financial institutions and governments that unfortunately still hold power in every area of the world. Currencies are regularly getting debased in nations across the globe, with a large majority of the world’s population still without access to banking infrastructure that’s often seen as an afterthought in the United States.</p>
<p>Crypto is a way of banking the unbanked, a technology that offers an opportunity for individuals to become their own overseer of financial operations, whether they’re holding crypto in a cold storage wallet or utilizing the numerous decentralized finance applications available across the crypto ecosystem. The promise of permissionless finance can’t easily be described, but the revolution occurring each day cannot be understated.</p>
<p>A blockchain’s inherent characteristics of transparency, security, and decentralization can significantly contribute to the way AI data is stored, shared, and utilized. This amalgamation of technologies promises to enhance trust in AI systems by providing an immutable ledger for AI transactions and decisions, thereby reducing concerns over data manipulation or misuse.</p>
<p>One of the critical aspects where crypto can assist AI (and vice versa) is in the realm of data management and security. AI systems require vast amounts of data to learn and improve. By leveraging blockchain technology, this data can be securely and transparently shared across different platforms and stakeholders. This not only ensures the integrity of the data but also opens up new avenues for collaborative AI research and development, breaking down data silos that often hinder innovation.</p>
<p>The integration of AI and blockchain could lead to the creation of legitimately decentralized autonomous organizations (DAOs). These DAOs, governed by smart contracts and powered by AI algorithms, could operate independently, make decisions, and execute transactions without human intervention. Historically, DAO management incrypto has been less than ideal as human emotions and financial incentives often obscure the initial purposes of a DAO. Implementing AI systems could revolutionize industries by automating processes and reducing the need for intermediaries, thereby increasing efficiency and reducing costs.</p>
<p>Another promising area is the use of blockchains as a means to incentivize the generation and sharing of AI data. Through tokenization, individuals and organizations could be rewarded for contributing valuable data to AI models, fostering a more collaborative and inclusive AI ecosystem.</p>
<p>Decentralized finance (DeFi) is also a potentially huge benefactor of AI, potentially creating what could be referenced as decentralized AI (DeAI). This approach could democratize access to AI technologies, allowing individuals and small entities to access AI tools and services that were previously the domain of large corporations.</p>
<p>The convergence of cryptocurrency and AI holds the potential to transform not only the financial sector but many aspects of our digital lives. By combining the strengths of both technologies, we can look forward to a future where AI is not only more accessible, but more secure, transparent and potentially even more efficient. Speaking of, let’s breakdown the current workings of the AI industry and how it currently functions.</p>
<p> </p>
<h2>Breaking down the opaque walls of artificial intelligence</h2>
<p>Comparing the overhaul of the financial system via crypto to the intelligence revolution occurring through the production of artificial intelligence systems, we can draw some very relevant similarities and make a case for the combination of the two.</p>
<p>In the present day, artificial intelligence companies like OpenAI, Google’s Deepmind, Anthropic and many, many others conduct their research and operations under closed doors.</p>
<p> </p>
<h2>Current opportunities in the crypto & artificial intelligence landscape</h2>
<p>Now that we have covered some of the basics around AI and Crypto synergies, we can take a closer examination of some of the leading projects within the sector. While most of these are still actively working to bootstrap their networks, acquire a loyal user base and gain attention from the broader crypto community, they are all working at the forefront of the industry and represent a good representation of this rapidly growing sector.</p>
<p> </p>
<h3>Bittensor, a network of decentralized artificial intelligence models:</h3>
<p>Bittensor is by far the most popular and well-established project building within the crypto & AI ecosystem. Bittensor is a decentralized network designed to democratize the field of artificial intelligence (AI) by creating a platform for numerous decentralized commodity markets, or 'subnetworks', united under a single token system. Its mission is to build a network that rivals the capabilities of large super corporations in AI, such as OpenAI, by employing unique incentive mechanisms and an advanced subnetwork architecture. Bittensor's system can be thought of as a machine, facilitated by blockchains, to transfer AI capabilities on-chain efficiently.</p>
<p>The network is managed by two key players: miners and validators. Miners submit pre-trained AI models to the network and receive rewards for their contributions, while validators ensure the validity and accuracy of the models' outputs. This setup creates a competitive environment where miners are incentivized to continually improve their models for better performance and greater rewards in $TAO, the network's native token. Users interact with the network by sending queries to validators, who then distribute these to miners. The validators rank the outputs from these miners and return the highest-ranked responses to the user.</p>
<p>Bittensor's approach to model development is unique. Unlike many AI labs or research organizations, Bittensor does not train models due to the high costs and complexity involved. Instead, the network relies on decentralized training mechanisms. Validators are tasked with evaluating the models produced by miners using a specific dataset and scoring each model based on certain criteria, such as accuracy and loss functions. This decentralized evaluation ensures a continuous improvement in model performance.</p>
<p>The architecture of Bittensor includes the Yuma Consensus mechanism, a unique hybrid of both Proof of Work (PoW) and Proof of Stake (PoS), which distributes resources across the network's subnetworks. Subnetworks are self-contained economic markets each focusing on different AI tasks, like text prediction or image generation, and can choose to opt in or out of the Yuma Consensus depending on their functionality.</p>
<p>Bittensor represents a significant step in the decentralization of AI, offering a platform where diverse AI models can be developed, evaluated, and improved in a decentralized manner. Its unique structure not only incentivizes the creation of high-quality AI models but also democratizes access to AI technology, potentially transforming how AI is developed and used in various sectors.</p>
<p> </p>
<h3>Akash, an open-source supercloud:</h3>
<p>The Akash Network is an innovative, open-source Supercloud platform designed for buying and selling computing resources in a secure and efficient manner. It is built with the vision of providing users the power to deploy their own cloud infrastructure as well as to buy and sell unused cloud resources. This flexibility not only democratizes cloud resource utilization but also offers cost-effective solutions for users needing to scale their operations.</p>
<p>At the core of Akash's system is a reverse auction mechanism, where users can submit bids for their computing needs and providers compete to offer services, often resulting in significantly lower prices compared to traditional cloud systems. This system is underpinned by reliable and well-established technologies like Kubernetes and Cosmos, ensuring a secure and dependable platform for hosting applications. Akash's community-driven approach ensures that its users have a say in the network's development and governance, making it a truly public and user-centric service.</p>
<p>Akash's infrastructure is defined using a simple-to-use, YAML-based Stack Definition Language (SDL), which allows users to create complex deployments across multiple areas and providers. This feature, combined with Kubernetes, the leading container orchestration system, guarantees not only flexibility in deployment but also security and reliability in application hosting. Furthermore, Akash offers persistent storage solutions, ensuring data retention even after restarts, which is particularly beneficial for applications managing large datasets.</p>
<p>Overall, Akash Network stands out as a decentralized cloud platform, offering a unique solution to the monopolistic nature of current cloud service providers. Its model of utilizing underutilized resources across millions of data centers globally not only reduces costs but also enhances the speed and efficiency of cloud-native applications. With no need for proprietary language rewrites and no vendor lock-in, Akash presents a versatile and accessible platform for a wide range of cloud-based applications.</p>
<p> </p>
<h3>Render, a platform for expanding access to compute:</h3>
<p>The Render Network is a blockchain-based platform designed to address the growing computational demands in media production, particularly in fields like augmented reality, virtual reality, and AI-enhanced media. It leverages unused GPU cycles to connect content creators needing computational power with providers who have available GPU resources. This decentralized approach, facilitated through blockchain technology, ensures secure and efficient processing of GPU-based tasks, including AI-driven content creation and optimization.</p>
<p>Render Network’s core offering is its integration with AI, which plays a crucial role in both content creation and process optimization. The network supports AI-related tasks, enabling artists to use AI tools for generating assets and enhancing digital artwork. This integration allows for the creation of ultra-high resolution 3D worlds and optimized rendering processes, like AI denoising. Additionally, Render Network's use of AI extends to managing large-scale art collections and optimizing the rendering workflow, thus broadening the possibilities in creative processes.</p>
<p>The ecosystem of Render Network functions as a marketplace for GPU resources, serving various stakeholders such as artists, engineers, and node operators. It democratizes access to computational power, enabling both individual creators and larger studios to undertake complex rendering projects affordably. Transactions within this ecosystem are facilitated using the RNDR token, creating a vibrant economy centered around rendering services. As AI continues to reshape digital content creation, the Render Network is poised to become a key player in facilitating new forms of creative expression and technological innovation in the digital media landscape.</p>
<p> </p>
<h3>Gensyn, a decentralized compute platform:</h3>
<p>Gensyn is an AI and cryptocurrency project focused on addressing the computational challenges and resource limitations inherent in state-of-the-art Artificial Intelligence (AI) systems. The project aims to overcome the barriers to AI advancement caused by the enormous resource requirements needed to build foundational models. Gensyn's approach is to create a decentralized, blockchain-based protocol for efficiently leveraging global compute resources.</p>
<p>The background of Gensyn highlights the increasing computational complexity of AI systems, which is outpacing the available compute supply. For instance, training large models like OpenAI's GPT-4 requires substantial resources, creating significant barriers for all parties involved. This dynamic has led to demands for a system that can efficiently use all available compute resources, addressing the limitations of current solutions, which are either too expensive or insufficient for large-scale AI work.</p>
<p>Gensyn aims to solve this problem by creating a decentralized protocol that connects and verifies off-chain deep learning work in a cost-efficient manner. This protocol faces several challenges, including work verification, marketplace dynamics, ex-ante work estimation, privacy concerns, and the need for effective parallelization of deep learning models. The protocol intends to build a trustless compute network with economic incentives for participation and a method to verify that computational work has been performed as promised.</p>
<p>The Gensyn Protocol is a layer-1 trustless protocol for deep learning computation that rewards participants for contributing their compute time and performing ML tasks. It uses a combination of techniques to verify the work completed, including probabilistic proof-of-learning, a graph-based pinpoint protocol, and a Truebit-style incentive game. The system involves various participants such as Submitters, Solvers, Verifiers, and Whistleblowers, each playing a specific role in the computational process.</p>
<p>In practice, the Gensyn Protocol involves several stages, from task submission to contract arbitration and settlement. It aims to create a transparent, low-cost marketplace for ML compute, enabling scalability and efficiency. The protocol also offers an opportunity for miners with powerful GPUs to repurpose their hardware for ML computation, potentially at a lower cost compared to mainstream providers. This approach not only addresses the computational challenges of AI but also aims to democratize access to AI resources.</p>
<p> </p>
<h3>Fetch, an open platform for the artificial intelligence economy:</h3>
<p>Fetch.ai has been around longer than some of the previously mentioned projects, with a large variety of services offered on its website. At its core, Fetch is an innovative project at the intersection of artificial intelligence (AI) and cryptocurrency, aimed at revolutionizing the way economic activities and processes are carried out. The foundation of Fetch's offerings is its AI agents, designed as modular building blocks that can be programmed to execute specific tasks. These agents are capable of autonomously connecting, searching, and transacting, thereby creating dynamic marketplaces and altering the traditional landscape of economic activity.</p>
<p>One of the key services offered by Fetch is the ability to make legacy products AI-ready. This is achieved by integrating their APIs with Fetch.ai Agents, a process that is quick and does not necessitate altering the underlying business application. The AI agents can be combined with other agents in the network, opening up possibilities for new use cases and business models. Furthermore, these agents possess the capability to negotiate and transact on behalf of users, enabling them to earn from their deployment.</p>
<p>Additionally, these agents can provide inferences from machine learning models, allowing users to monetize their insights and enhance their machine learning models.</p>
<p>Fetch also introduces Agentverse, a no-code managed service that simplifies the deployment of AI agents. Just like legacy no-code platforms are gaining traction (Replit)and services like Github’s Copilot making writing code accessible to the masses, Fetch is working to further democratize web3 development in its own unique way.</p>
<p>Through Agentverse, users can launch their first agent effortlessly, which significantly lowers the barrier to entry for using advanced AI technologies. In terms of AI Engine and Agent Services, Fetch utilizes large language models (LLMs) to discover and directtask execution to the appropriate AI agents. This system not only monetizes AI apps and services but also serves as a comprehensive platform for agent services including building, listing, analytics, and hosting.</p>
<p>The platform enhances its utility with features such as Search & Discovery and Analytics. Agents can be registered in the Agentverse for active discoverability on Fetch.ai's platform, which employs a targeted LLM-based search. Analytical tools are available for improving the effectiveness of an agent's semantic descriptors, thereby enhancing their discoverability. Moreover, Fetch.ai incorporates an IoT Gateway for offline agents, enabling them to collect messages and process them in batches upon reconnection.</p>
<p>Finally, Fetch.ai offers hosting services for managed agents, providing all the features of Agentverse besides hosting. The platform also introduces an open network for agent addressing and naming, leveraging Fetch.ai’s Web3 network. This aspect signifies a novel approach to Web DNS addressing, integrating blockchain technology into the system. Overall, Fetch.ai presents a versatile platform that merges AI and blockchain technology, offering tools for AI agent development, machine learning model monetization, and a groundbreaking approach to search and discoverability in the digital economy. This combination of AI agents and blockchain technology paves the way for automating and optimizing various processes in a decentralized and efficient manner.</p>
<p> </p>
<h2>Next steps and projections for both industries</h2>
<p>The seamless integration of artificial intelligence and blockchain technology represents a pivotal advancement in both sectors. This combination is not just a mere fusion of two cutting-edge technologies, but a transformational synergy that redefines the boundaries of digital innovation and decentralization. The potential applications of this integration, as explored in various projects like Fetch.ai, Bittensor, Akash Network, Render Network, and Gensyn, demonstrate the vast possibilities and significant benefits of combining AI's computational power with blockchain's secure and transparent framework.</p>
<p>As we look toward the future, it is evident that the convergence of AI and blockchain will play a crucial role in shaping various industries. From enhancing data security and integrity to creating new models of decentralized autonomous organizations, this amalgamation holds the promise of more efficient, transparent, and accessible technologies. Particularly in the realm of decentralized finance, the emergence of decentralized AI (DeAI) could democratize access to AI technologies, breaking down the barriers that have traditionally favored large corporations. This could lead to a more inclusive digital economy where individuals and smaller entities can leverage AI tools and services that were previously out of reach.</p>
<p>Furthermore, the integration of these technologies is poised to address some of the most pressing challenges in both domains. In AI, issues like data silos and the immense computational resources required for training large models can be mitigated through blockchain's decentralized data management and shared computational power. In the blockchain space, AI can enhance efficiency, automate decision-making processes, and improve security mechanisms. As we advance, it is crucial for developers, researchers, and stakeholders to continue exploring and harnessing the synergies between AI and blockchain. By doing so, they will not only contribute to the growth of these individual fields but also drive innovation across the digital landscape, ultimately benefiting society as a whole.</p>
<p></p>
<hr>
<p><em>Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.</em></p>
Reflexivity Researchhttps://www.coingecko.com/learn/the-intersection-of-ai-and-cryptoThe artificial intelligence industry has been making headlines lately, for reasons good and bad. While you’re probably well aware of the recent drama surrounding OpenAI and have maybe explored the ...tag:www.coingecko.com,2005:Post/11912024-01-15T17:00:00Z2024-01-16T02:06:15ZBuild A Crypto Twitter Bot in 4 Easy Steps<p>X, otherwise better recognized as Twitter, is one of the leading platforms where the crypto community is most engaged. Serving as a hub for real-time updates, Twitter is often where the latest blockchain developments and news break. The emergence of crypto Twitter bots (X bots) have further enriched the user experience and play a crucial role in keeping users informed and engaged – offering a range of functionalities from tracking cryptocurrency price changes to delivering personalized content.</p>
<p>In today's tutorial, we'll cover how to build your own Twitter bot (X bot) that tweets crypto price updates. Specifically, we'll design a bot that will tweet the top 5 NFTs by trading volume, their respective floor price and 24-hour percentage change.</p>
<p>We'll be using the following APIs:</p>
<ul>
<li>
<a href="https://www.coingecko.com/en/api/?utm_campaign=learn&utm_content=build-crypto-twitter-bot" target="_blank">CoinGecko API</a> – We will be leveraging NFT data endpoints to get NFT collections' floor prices.</li>
<li>
<a href="https://www.npmjs.com/package/twitter-api-v2">Twitter API v2</a> library – This is the required code library that allows us to connect to Twitter and tweet.</li>
</ul>
<p><img alt="How to build a crypto twitter bot with api javascript" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9132/content_How_to_Build_a_Crypto_Twitter_Bot_%281%29.webp" style="width: 1200px; height: 597px;"></p>
<h2>How to Build A Crypto Price Twitter Bot (4 Steps)</h2>
<p>We'll be creating a Twitter bot using Javascript, with minimal coding knowledge needed. Here's a quick overview of the steps:</p>
<ol>
<li>Get NFT data from CoinGecko API.</li>
<li>Create a tweet function.</li>
<li>Consolidate in one main() function.</li>
<li>Deploy on server and schedule automation.</li>
</ol>
<p>Let’s dive in!</p>
<p><em>For the ease of demonstration, we'll be referencing the platform Twitter and X interchangeably.</em></p>
<hr>
<h2>Prerequisites and Packages to Install</h2>
<p>For this tutorial, you’ll require the following libraries installed:</p>
<ul>
<li>axios</li>
<li>twitter-api-v2</li>
<li>cron</li>
</ul>
<p>You can install them by typing the following command in your terminal after you have created an npm repository. </p>
<p><code>npm install axios twitter-api-v2</code></p>
<hr>
<h2>Step 1: Get NFT Data from CoinGecko API</h2>
<p>We'll first navigate to the <a href="https://www.coingecko.com/api/documentation/?utm_campaign=learn&utm_content=build-crypto-twitter-bot" target="_blank">CoinGecko API documentation</a>. The following two endpoints will allow us to retrieve the relevant NFT data points:</p>
<ol>
<li>
<strong>/nft/list </strong><em>–</em> Get the top 5 NFT collections based on 24-hour trading volume in USD.</li>
<li>
<strong>/nfts/{id}</strong><em> –</em> Get the individual floor price and percentage (%) change for each NFT, using the ids of the NFTs from (1).</li>
</ol>
<p><img alt="How to use NFT API to create an X bot (Twitter bot) | CoinGecko API" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9074/content_Screenshot_2024-01-06_at_2.02.38%E2%80%AFPM.webp" style="width: 1200px; height: 192px;"></p>
<p>First, we define an array NftData which will store all the required data (such as price, % change, and name) in a global scope so that other functions can access it. </p>
<p><code>let NftData = [];</code></p>
<p>The array should look like this once populated.</p>
<p><code>[</code></p>
<p><code> {</code></p>
<p><code> name: 'Bored Ape Yacht Club',</code></p>
<p><code> floor_price: 26.7,</code></p>
<p><code> native_currency_symbol: 'ETH',</code></p>
<p><code> floor_price_24h_change: 1.3282732447817835</code></p>
<p><code> },</code></p>
<p><code> {</code></p>
<p><code> name: 'Pudgy Penguins',</code></p>
<p><code> floor_price: 10.67,</code></p>
<p><code> native_currency_symbol: 'ETH',</code></p>
<p><code> floor_price_24h_change: -0.6335010247810696</code></p>
<p><code> }</code></p>
<p><code>]</code></p>
<p>Then, we create a <em>getTopNFT</em> function to execute the API calls. Here’s a walkthrough of the code.</p>
<ol>
<li>We define a local array <em>topNFT</em> to store our top 5 NFTs so that we can loop through to get each NFT's price data. </li>
<li>The first call is to <em>/nfts/list</em> to obtain the current top 5 NFTs by USD trading volume. To filter this we pass in the parameters
<ul>
<li><em>order=h24_volume_usd_desc</em></li>
<li><em>per_page=5</em></li>
<li><em>page=1</em></li>
</ul>
</li>
<li>We then save the 5 NFT ids in the <em>topNFT</em> array.</li>
<li>The second call is made to <em>/nfts/{id} </em>to get the name, price, symbol, and 24H change of each NFT. We nest this in a for loop so that we can get the data for all 5 NFTs.</li>
<li>We then save them into the <em>NftData</em> array. </li>
</ol>
<p><code>async function getTopNFT() {</code></p>
<p><code> let topNFT = [];</code></p>
<p><code> const url = 'https://api.coingecko.com/api/v3/nfts/list?order=h24_volume_usd_desc&per_page=5&page=1';</code></p>
<p><code> await axios.get(url)</code></p>
<p><code> .then(function (response) {</code></p>
<p><code> topNFT = topNFT.concat(response.data.map(key => key.id));</code></p>
<p><code> })</code></p>
<p><code> .catch(function (error) { console.log(error) })</code></p>
<p><code> console.log(topNFT);</code></p>
<p><code> for (let i = 0; i < topNFT.length; i++) {</code></p>
<p><code> const url2 = 'https://api.coingecko.com/api/v3/nfts/' + topNFT[i];</code></p>
<p><code> await axios.get(url2)</code></p>
<p><code> .then(function (response) {</code></p>
<p><code> var x = response.data;</code></p>
<p><code> NftData.push({</code></p>
<p><code> "name": x.name,</code></p>
<p><code> "floor_price": x.floor_price.native_currency,</code></p>
<p><code> "native_currency_symbol": x.native_currency_symbol,</code></p>
<p><code> "floor_price_24h_change": x.floor_price_24h_percentage_change.native_currency</code></p>
<p><code> });</code></p>
<p><code> })</code></p>
<p><code> .catch(function (error) { console.log(error) })</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<hr>
<h2>Step 2: Create A Tweet Function</h2>
<p>Let's start with initializing a Twitter client, using the following code:</p>
<p><code>const twitterApi = require('twitter-api-v2');</code></p>
<p><code>// Initialize Twitter API client</code></p>
<p><code>const twitterClient = new twitterApi.TwitterApi({</code></p>
<p><code> appKey:'your-app-key',</code></p>
<p><code> appSecret:'your-app-secret',</code></p>
<p><code> accessToken: 'your-access-token',</code></p>
<p><code> accessSecret:'your-access-secret',</code></p>
<p><code>});</code></p>
<p><code>// Read+Write level</code></p>
<p><code>const rwClient = twitterClient.readWrite;</code></p>
<p>To tweet programmatically you will need to <a href="https://developer.twitter.com/en/support/x-api/developer-account1">create a Twitter developer account</a>, which will give you the credentials like <em>appKey.</em></p>
<p>Once you enter the portal, create a project and an app under the project. Click on the project page and you will see the ‘App’ section. Simply click on the key icon here. </p>
<p><img alt="Create a CG NFT Listing Bot" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9131/content_Screenshot_2024-01-03_at_12.39.46%E2%80%AFAM_%281%29.webp" style="width: 1200px; height: 369px;"></p>
<p>In the next page, copy the following credentials (we have additionally indicated which field they should be mapped to as well).</p>
<ol>
<li>Consumer keys
<ul>
<li>API credentials - this is <em>appKey</em>
</li>
<li>API secret - this is <em>appSecret</em>
</li>
</ul>
</li>
<li>Authentication keys
<ul>
<li>Access token - this is <em>accessToken</em>
</li>
<li>Access secret - this is <em>accessSecret</em>
</li>
</ul>
</li>
</ol>
<p>After getting hold of the credentials, it’s time to create our tweet function! Here’s a quick explainer for the code:</p>
<p>All the action happens in the try block. The function should accept an input logMessages which contains an array with each element representing a line of NFT price data.</p>
<p><code>async function tweetNFTPrices(logMessages) {</code></p>
<p><code> try {</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<p>We first check if logMessages is being passed in and it contains at least one element.</p>
<p><code> if (logMessages && logMessages.length > 0) {</code></p>
<p><code>}</code></p>
<p>Next, we format the tweet by adding a header and footer. </p>
<p>For reference, here’s the final message we will be constructing, and in brackets are their references in the code. </p>
<div style="background:#eeeeee;border:1px solid #cccccc;padding:5px 10px;">
<i>(Header)</i><br>
Top 5 NFT floor prices<br>
<br>
<i>(logMessageArray)</i><br>
Bored Ape Yacht Club -> 26.7 ETH | 🟢↑ 1.1%<br>
Pudgy Penguins -> 11.37 ETH | 🟢↑ 6.2%<br>
Azuki -> 6.39 ETH | 🟢↑ 1.4%<br>
Mutant Ape Yacht Club -> 5.09 ETH | 🟢↑ 2.3%<br>
DeGods -> 3.31 ETH | 🟢↑ 6.0%<br>
<br>
<i>(Footer)</i><br>
24H %<br>
#Coingecko #NFT</div>
<p><code> const header = 'Top 5 NFT floor prices'; // Define your header here</code></p>
<p><code> const footer = '\n\n24H %\n#Coingecko #NFT '; // Define your footer here</code></p>
<p>The following code constructs the tweet in a for loop, adding every line of <a href="https://www.coingecko.com/en/api/nft?utm_campaign=learn&utm_content=build-crypto-twitter-bot" target="_blank">NFT data</a> to the tweet and stops if it exceeds the tweet character limit. If it stops, the code continues and the tweet text will be up until the point before it stops. </p>
<p><code> // Join log messages while considering character limit</code></p>
<p><code> let combinedLogMessages = `${header}\n\n`;</code></p>
<p><code> let currentLength = combinedLogMessages.length;</code></p>
<p><code> const maxTweetLength = 280; // Maximum characters for a tweet</code></p>
<p> </p>
<p><code> for (const message of logMessages) {</code></p>
<p><code> if (currentLength + message.length + footer.length <= maxTweetLength) {</code></p>
<p><code> combinedLogMessages += `${message}\n`;</code></p>
<p><code> currentLength += message.length;</code></p>
<p><code> } else {</code></p>
<p><code> break; // Break loop if exceeding character limit</code></p>
<p><code> }</code></p>
<p><code> }</code></p>
<p>It then combines with the footer.</p>
<p><code> combinedLogMessages += footer;</code></p>
<p>Finally, it sends out the tweet with the <em>rwClient.v2.tweet</em> function. The message should be passed in the <em>text</em> field in the object. Remember to add await as it is an asynchronous function. </p>
<p><code> await rwClient.v2.tweet({</code></p>
<p><code> text: combinedLogMessages,</code></p>
<p><code> });</code></p>
<p>Putting everything together, the <em>tweetNFTPrices</em> function should look like the following.</p>
<p><code>async function tweetNFTPrices(logMessages) {</code></p>
<p><code> try {</code></p>
<p><code> if (logMessages && logMessages.length > 0) {</code></p>
<p><code> const header = 'Top 5 NFT floor prices'; // Define your header here</code></p>
<p><code> const footer = '\n\n24H %\n#Coingecko #NFT '; // Define your footer here</code></p>
<p> </p>
<p><code> // Join log messages while considering character limit</code></p>
<p><code> let combinedLogMessages = `${header}\n\n`;</code></p>
<p><code> let currentLength = combinedLogMessages.length;</code></p>
<p><code> const maxTweetLength = 280; // Maximum characters for a tweet</code></p>
<p> </p>
<p><code> for (const message of logMessages) {</code></p>
<p><code> if (currentLength + message.length + footer.length <= maxTweetLength) {</code></p>
<p><code> combinedLogMessages += `${message}\n`;</code></p>
<p><code> currentLength += message.length;</code></p>
<p><code> } else {</code></p>
<p><code> break; // Break loop if exceeding character limit</code></p>
<p><code> }</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> combinedLogMessages += footer;</code></p>
<p> </p>
<p><code> await rwClient.v2.tweet({</code></p>
<p><code> text: combinedLogMessages,</code></p>
<p><code> });</code></p>
<p> </p>
<p><code> console.log('Tweeted the post:', combinedLogMessages); //You can print it in console for cross checking</code></p>
<p><code> } else {</code></p>
<p><code> console.error('Error: logMessages array is empty or undefined.');</code></p>
<p><code> }</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<p>With that, you are one step away from being able to tweet your crypto price updates from the code!</p>
<hr>
<h2>Step 3: Consolidate in One Main() Function</h2>
<p>The<strong> main() function </strong>consolidates and executes all the steps above, namely, it gets the necessary price data, formats it, and then tweets it out. Let’s break it down, step-by-step. </p>
<p>First, we call getTopNFT() to fetch the NFT data. </p>
<p><code> //Get the data</code></p>
<p><code> await getTopNFT();</code></p>
<p> </p>
<p>Then, with the necessary NFT data now populated in the NftData array, we will further format it and save it into a logMessagesArray array. </p>
<p>For each NFT (using a for loop), trim the 24H floor price change to 1 decimal place.</p>
<p><code>const formattedChange = parseFloat(floor_price_24h_change).toFixed(1);</code></p>
<p> </p>
<p>Depending on the 24H change, add green/red/black emoji and up/down arrow for better visualization.</p>
<p><code> if (floor_price_24h_change > 0) {</code></p>
<p><code> changeSymbol = '🟢\u{2191}'; // Green arrow up emoji</code></p>
<p><code> } else if (floor_price_24h_change < 0) {</code></p>
<p><code> changeSymbol = '🔴\u{2193}'; // Red arrow down emoji</code></p>
<p><code> } else {</code></p>
<p><code> changeSymbol = '⚫️'; // Black circle emoji for no change</code></p>
<p><code> }</code></p>
<p> </p>
<p>Construct the final form of each NFT price data line into 'Bored Ape Yacht Club -> 26.7 ETH | 🟢↑ 1.13%' and add it to the <em>logMessagesArray</em> array. </p>
<p><code>const logMessage = `${name} -> ${floor_price} ${native_currency_symbol} | ${changeSymbol} ${formattedChange}%`;</code></p>
<p><code>logMessagesArray.push(logMessage); // Push each log message to the array</code></p>
<p>Finally, pass <em>logMessagesArray</em> into the <em>tweetNFTPrices</em> function that we created in step 2. It will then fire the tweet out and violà - you have made your twitter bot tweet! </p>
<p><code> try {</code></p>
<p><code> await tweetNFTPrices(logMessagesArray);</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p> </p>
<p>Here’s the amalgamation of the function. </p>
<p><code>async function main() {</code></p>
<p> </p>
<p><code> //Get the data</code></p>
<p><code> await getTopNFT();</code></p>
<p> </p>
<p><code> //Format tweet</code></p>
<p><code> const logMessagesArray = [];</code></p>
<p> </p>
<p><code> for (let i = 0; i < NftData.length; i++) {</code></p>
<p><code> const { name, floor_price, native_currency_symbol, floor_price_24h_change } = NftData[i];</code></p>
<p><code> let changeSymbol = '';</code></p>
<p> </p>
<p><code> // Limiting floor_price_24h_change to 1 decimal place</code></p>
<p><code> const formattedChange = parseFloat(floor_price_24h_change).toFixed(1);</code></p>
<p> </p>
<p><code> if (floor_price_24h_change > 0) {</code></p>
<p><code> changeSymbol = '🟢\u{2191}'; // Green arrow up emoji</code></p>
<p><code> } else if (floor_price_24h_change < 0) {</code></p>
<p><code> changeSymbol = '🔴\u{2193}'; // Red arrow down emoji</code></p>
<p><code> } else {</code></p>
<p><code> changeSymbol = '⚫️'; // Black circle emoji for no change</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> const logMessage = `${name} -> ${floor_price} ${native_currency_symbol} | ${changeSymbol} ${formattedChange}%`;</code></p>
<p><code> logMessagesArray.push(logMessage); // Push each log message to the array</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> console.log(logMessagesArray); // Log the entire array after the loop finishes</code></p>
<p> </p>
<p><code> //Tweet it out</code></p>
<p><code> try {</code></p>
<p><code> await tweetNFTPrices(logMessagesArray);</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<hr>
<h2>Step 4: Deploy on Server and Schedule Automation</h2>
<p>Lastly, to run the script regularly at a set interval without having to manually trigger it every time, we will need to deploy it to a server and set up a scheduler.</p>
<p>Install the node-cron package if you haven't already:</p>
<p><code>npm install node-cron</code></p>
<p> </p>
<p>To run this script every 00:00 of the day, we can simply wrap this around <em>main()</em>.</p>
<p><code>// Schedule the script to run every 24 hours</code></p>
<p><code>cron.schedule('0 0 * * *', async () => {</code></p>
<p><code> console.log('Running script every 24 hours...');</code></p>
<p><code> try {</code></p>
<p><code> await main(); // Call your main function here</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error running main function:', error.message);</code></p>
<p><code> }</code></p>
<p><code>});</code></p>
<p> </p>
<p>Here is another example if you want to run it every 5 minutes, although this is not recommended, because we should not be posting duplicate content on Twitter/X.</p>
<p><code>// Wrap your main function call in a cron job that runs every 5 minutes</code></p>
<p><code> cron.schedule('*/5 * * * *', async () => {</code></p>
<p><code> console.log('Running script every 5 minutes');</code></p>
<p><code> try {</code></p>
<p><code> await main(); // Call your main function here</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error(error.message);</code></p>
<p><code> }</code></p>
<p><code> });</code></p>
<p><code>}</code></p>
<p>To run the script remotely, you can deploy this script to any cloud server based on your preferences. There are several options available, from self-managed servers such as AWS EC2, GCP, Digital Ocean, and Linode to Platform as a Service PaaS like Heroku, Azure or AWS Elastic Beanstalk that offer simplified deployment workflows. Moreover, you can also use screen session to run your script at the background of your Virtual Private Server.</p>
<p>To run the script locally, simply enter the following command in your terminal: </p>
<p><code>node your_script_name.js</code></p>
<p>Here’s the script putting everything together from the start for your reference.</p>
<p><code>const axios = require('axios');</code></p>
<p><code>const twitterApi = require('twitter-api-v2');</code></p>
<p><code>const cron = require('node-cron');</code></p>
<p> </p>
<p><code>// Initialize Twitter API client</code></p>
<p><code>const twitterClient = new twitterApi.TwitterApi({</code></p>
<p><code> appKey:'your-app-key',</code></p>
<p><code> appSecret:'your-app-secret',</code></p>
<p><code> accessToken: 'your-access-token',</code></p>
<p><code> accessSecret:'your-access-secret',</code></p>
<p><code>});</code></p>
<p> </p>
<p><code>// Read+Write level</code></p>
<p><code>const rwClient = twitterClient.readWrite;</code></p>
<p> </p>
<p><code>// Json array to store NFT data such as price, % change </code></p>
<p><code>let NftData = [];</code></p>
<p> </p>
<p><code>async function getTopNFT() {</code></p>
<p><code> let topNFT = [];</code></p>
<p><code> const url = 'https://api.coingecko.com/api/v3/nfts/list?order=h24_volume_usd_desc&per_page=5&page=1';</code></p>
<p><code> await axios.get(url)</code></p>
<p><code> .then(function (response) {</code></p>
<p><code> topNFT = topNFT.concat(response.data.map(key => key.id));</code></p>
<p><code> })</code></p>
<p><code> .catch(function (error) { console.log(error) })</code></p>
<p> </p>
<p><code> console.log(topNFT);</code></p>
<p><code> for (let i = 0; i < topNFT.length; i++) {</code></p>
<p><code> const url2 = 'https://api.coingecko.com/api/v3/nfts/' + topNFT[i];</code></p>
<p><code> await axios.get(url2)</code></p>
<p><code> .then(function (response) {</code></p>
<p><code> var x = response.data;</code></p>
<p><code> NftData.push({</code></p>
<p><code> "name": x.name,</code></p>
<p><code> "floor_price": x.floor_price.native_currency,</code></p>
<p><code> "native_currency_symbol": x.native_currency_symbol,</code></p>
<p><code> "floor_price_24h_change": x.floor_price_24h_percentage_change.native_currency</code></p>
<p><code> });</code></p>
<p><code> })</code></p>
<p><code> .catch(function (error) { console.log(error) })</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<p> </p>
<p><code>async function tweetNFTPrices(logMessages) {</code></p>
<p><code> try {</code></p>
<p><code> if (logMessages && logMessages.length > 0) {</code></p>
<p><code> const header = 'Top 5 NFT floor prices'; // Define your header here</code></p>
<p><code> const footer = '\n\n24H %\n#Coingecko #NFT '; // Define your footer here</code></p>
<p> </p>
<p><code> // Join log messages while considering character limit</code></p>
<p><code> let combinedLogMessages = `${header}\n\n`;</code></p>
<p><code> let currentLength = combinedLogMessages.length;</code></p>
<p><code> const maxTweetLength = 280; // Maximum characters for a tweet</code></p>
<p> </p>
<p><code> for (const message of logMessages) {</code></p>
<p><code> if (currentLength + message.length + footer.length <= maxTweetLength) {</code></p>
<p><code> combinedLogMessages += `${message}\n`;</code></p>
<p><code> currentLength += message.length;</code></p>
<p><code> } else {</code></p>
<p><code> break; // Break loop if exceeding character limit</code></p>
<p><code> }</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> combinedLogMessages += footer;</code></p>
<p> </p>
<p><code> await rwClient.v2.tweet({</code></p>
<p><code> text: combinedLogMessages,</code></p>
<p><code> });</code></p>
<p> </p>
<p><code> console.log('Tweeted the post:', combinedLogMessages);</code></p>
<p><code> } else {</code></p>
<p><code> console.error('Error: logMessages array is empty or undefined.');</code></p>
<p><code> }</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<p> </p>
<p><code>async function main() {</code></p>
<p> </p>
<p><code> //Get the data</code></p>
<p><code> await getTopNFT();</code></p>
<p> </p>
<p><code> //Format tweet</code></p>
<p><code> const logMessagesArray = [];</code></p>
<p> </p>
<p><code> for (let i = 0; i < NftData.length; i++) {</code></p>
<p><code> const { name, floor_price, native_currency_symbol, floor_price_24h_change } = NftData[i];</code></p>
<p><code> let changeSymbol = '';</code></p>
<p> </p>
<p><code> // Limiting floor_price_24h_change to 1 decimal place</code></p>
<p><code> const formattedChange = parseFloat(floor_price_24h_change).toFixed(1);</code></p>
<p> </p>
<p><code> if (floor_price_24h_change > 0) {</code></p>
<p><code> changeSymbol = '🟢\u{2191}'; // Green arrow up emoji</code></p>
<p><code> } else if (floor_price_24h_change < 0) {</code></p>
<p><code> changeSymbol = '🔴\u{2193}'; // Red arrow down emoji</code></p>
<p><code> } else {</code></p>
<p><code> changeSymbol = '⚫️'; // Black circle emoji for no change</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> const logMessage = `${name} -> ${floor_price} ${native_currency_symbol} | ${changeSymbol} ${formattedChange}%`;</code></p>
<p><code> logMessagesArray.push(logMessage); // Push each log message to the array</code></p>
<p><code> }</code></p>
<p> </p>
<p><code> console.log(logMessagesArray); // Log the entire array after the loop finishes</code></p>
<p> </p>
<p><code> //Tweet it out</code></p>
<p><code> try {</code></p>
<p><code> await tweetNFTPrices(logMessagesArray);</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error posting tweet:', error);</code></p>
<p><code> }</code></p>
<p><code>}</code></p>
<p> </p>
<p><code>// Schedule the script to run every 24 hours</code></p>
<p><code>cron.schedule('0 0 * * *', async () => {</code></p>
<p><code> console.log('Running script every 24 hours...');</code></p>
<p><code> try {</code></p>
<p><code> await main(); // Call your main function here</code></p>
<p><code> } catch (error) {</code></p>
<p><code> console.error('Error running main function:', error.message);</code></p>
<p><code> }</code></p>
<p><code>});</code></p>
<hr>
<h2>The Final Product: Crypto Price Twitter Bot</h2>
<p>In 4 easy steps, we have created an automated crypto price Twitter or X bot that tweets the current top 5 NFT Collections by trading volume, with each of their floor prices and percentage price change (see it in action on Twitter/X: <a href="https://twitter.com/nft_listing_bot" target="_blank">https://twitter.com/nft_listing_bot</a><b>).</b></p>
<p><b><img alt="Twitter X bot that tweet out the current top 5 NFTs in trading volume with each of their floor prices and % change" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9075/content_Screenshot_2024-01-06_at_1.43.20%E2%80%AFPM.webp" style="width: 1200px; height: 731px;"></b></p>
<h3>Potential Enhancements & Pro-Tips</h3>
<p>For ease of this tutorial, we've created a simplified crypto price Twitter/X bot. However here are some potential improvement areas:</p>
<ul>
<li>
<b>Work around Twitter/X's character limit by construct a tweet thread. </b>The character limit for a single tweet might be busted in the event of one or several long NFT names resulting in the tweet being cut off. As a potential enhancement, you can also check the character limit and use the <a href="https://github.com/PLhery/node-twitter-api-v2/blob/53b0daf4b34fe158e12bd20038981938cc092085/doc/v2.md#post-a-thread-of-tweets">tweetThread</a> method to post it as a thread. This ensures that you always get to post the entire NFT data without the inhibition of character limit.<br>
</li>
<li>
<b>Use a paid exclusive CoinGecko API endpoint to make API calls more efficient. </b>This tutorial makes 6 calls to 2 different API endpoints that are publicly accessible. Alternatively, you can actually get the same data using the <a href="https://apiguide.coingecko.com/exclusive-endpoints/for-paid-plan-subscribers#nfts-markets/?utm_campaign=learn&utm_content=build-crypto-twitter-bot" target="_blank">/nfts/markets</a> endpoint, available on our paid plan.</li>
</ul>
<p><a href="https://www.coingecko.com/en/api/pricing/?utm_campaign=learn&utm_content=build-crypto-twitter-bot" target="_blank"><img alt="Comprehensive & reliable crypto data API - Is CoinGecko API better than Coinmarketcap API" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9135/content_CoinGecko_Sign_Up_CTA.webp" style="width: 1200px; height: 575px;"></a></p>
<hr>
<h2>Conclusion</h2>
<p>With the right APIs, building a Twitter bot or X bot is a lot simpler than it sounds – even for individuals with minimal coding knowledge. To sum, the process involves retrieving crypto price data from the CoinGecko API, establishing a tweet function, consolidating functionalities within a main() function, and finally, deploying the bot on a server with the capability to schedule automation. This process can be further replicated with other endpoints to create different types of Twitter or X bots that tweet varying data.</p>
<p><em>This article was co-written by <a href="https://www.linkedin.com/in/alan-liew/">Alan</a> and <a href="https://www.linkedin.com/in/tiongwoonong/">Tiong Woon</a>.</em></p>
Alan & Tiong Woonhttps://www.coingecko.com/learn/build-crypto-twitter-botX, otherwise better recognized as Twitter, is one of the leading platforms where the crypto community is most engaged. Serving as a hub for real-time updates, Twitter is often where the latest bloc...tag:www.coingecko.com,2005:Post/11972024-01-15T10:40:10Z2024-01-15T08:38:39ZWhat Happens When Crypto Is Sent to the Wrong Address?<p><meta charset="utf-8"></p>
<h2 dir="ltr">Can I Recover Crypto Sent to the Wrong Address?</h2>
<p dir="ltr">Generally the process is irreversible, as all Bitcoin and cryptocurrency transactions are final. However, if you have sent crypto to an active address, you can try to find the owner of the wallet and contact them to try to negotiate a return of your funds.</p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Due to the complicated nature of cryptocurrency transactions and addresses, cases of erroneous transfers can happen.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Erroneous transfers could result from sending assets to the wrong address, network, or asset to the wrong contract address.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Erroneous transfers usually result in permanent loss of assets; however, there are some options for users to recover their crypto.</p>
</li>
</ul>
<hr>
<p dir="ltr"><img alt="Crypto Sent to Wrong Address" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9134/content_Crypto_Sent_to_Wrong_Address_%281%29.webp" style="width: 950px; height: 475px;"></p>
<p dir="ltr">The decentralized nature of blockchains allows users full control over their assets without requiring a third party or centralized entity. On the positive side, this means that your transactions cannot be halted or rejected by a governing entity. However, it also means full accountability with little external support, besides community forums. </p>
<p dir="ltr">In addition to this, the structure of cryptocurrency addresses and the non-universality of cryptocurrencies means increased chances of running into errors while transacting. For example, crypto can be sent to the wrong address, or even the wrong network, resulting in difficulty recovering funds (if possible). </p>
<p dir="ltr">But are your assets lost for good when you send them to the wrong address?</p>
<h2 dir="ltr">Is Crypto Lost When Sent to the Wrong Address?</h2>
<p dir="ltr">Simply put, yes, your crypto is lost to you. You lose custody of your assets, while the intended recipient doesn’t receive the sent asset. When crypto is sent to the wrong address, there are three possible cases:</p>
<h3 dir="ltr">The Address Is a Burn Address or a Dead Wallet</h3>
<p dir="ltr"><a href="https://www.coingecko.com/learn/coin-burn-crypto" target="_blank">Burn</a> addresses have no private keys; therefore assets sent to such addresses cannot be recovered. <a href="https://www.coingecko.com/learn/dead-wallet-crypto" target="_blank">Dead wallets</a> are inactive, where funds sent to such addresses can only be accessed by the <a href="https://www.coingecko.com/learn/what-are-public-and-private-keys" target="_blank">private key</a> holder if they start using the wallet again. However, given that most dead wallets are inactive due to investors losing access to their wallets or passing away without handing down their wallets, it’s unlikely that contacting the wallet owner through their address is possible.</p>
<h3 dir="ltr">The Address Is Nonexistent</h3>
<p dir="ltr">Once the entered address corresponds to the blockchain’s wallet structure, the transfer is executed even if this address hasn’t been created (mined from the address pool). Theoretically, the funds sent to the account can be accessed by anyone who receives the address while creating an account on the network. The possibility of this happening is very rare, given that there are <a href="https://www.mewtopia.com/probability-of-generating-an-active-ethereum-wallet-do-you-feel-lucky-you-shouldnt/" rel="nofollow noopener" target="_blank">16^40</a> possible public address combinations on Ethereum alone.</p>
<h3 dir="ltr">The Wallet Is Active</h3>
<p dir="ltr">If the wallet is active, the recipient gains custody of the funds. Recovery is only possible if the wallet owner can be identified and contacted. If it is an exchange account, the exchange can be contacted for a possible recovery attempt.</p>
<h2 dir="ltr">What Happens if Crypto Is Sent to the Wrong Blockchain?</h2>
<p dir="ltr">As explained earlier, a transfer transaction can only be executed if the wallet address corresponds to the blockchain’s wallet structure. Where this is not the case, the transfer request is rejected. This prevents transfer to unrelated blockchain networks. </p>
<p dir="ltr">For instance, assets cannot be wrongly transferred to Bitcoin, Tron, or Solana blockchain from Ethereum since the wallet structure is totally different. However, this can happen in networks with close similarity, like Ethereum and other EVM Layer 1 and <a href="https://www.coingecko.com/learn/what-are-layer-2-crypto-protocols" target="_blank">Layer 2</a> networks like Fantom and Arbitrum, or other non-EVM networks with similar address structures like Taraxa and Sui blockchain.</p>
<p dir="ltr">In a case where an asset is sent to a non-EVM network with a similar wallet structure (like Taraxa and SUI), the asset might be unrecoverable. This is because the asset is not universal to these networks as the smart contract that governs its generation and transaction doesn’t exist on the destination network. Note that this doesn’t apply to <a href="https://www.coingecko.com/learn/crypto-bridges-blockchain-interoperability" target="_blank">bridged assets</a>. Assets can be bridged to non-similar networks if the facility for such operation is available and used correctly.</p>
<h2 dir="ltr">What Can You Do if Crypto Is Sent to the Wrong Address?</h2>
<p dir="ltr">Wrongly sent crypto assets can only be possibly recovered if they are sent to an active address. If the wallet is dead, inactive, a contract, or a burn address, the asset cannot be recovered. However, if the address is active, an attempt can be made at recovery. An active wallet is either a personal wallet or an institutional wallet (belonging to an exchange or any other centralized institution). Here’s what you can do in any of these cases;</p>
<h3 dir="ltr">Check With the Exchange’s Customer Support</h3>
<p dir="ltr">Some <a href="https://www.coingecko.com/learn/what-are-centralized-crypto-exchanges-cex" target="_blank">centralized exchanges</a> provide asset recovery services for wrong transfers to any of their wallets. While the terms might vary depending on the exchange, affected individuals could be able to get the whole or a part of the lost asset.</p>
<h3 dir="ltr">Contact the Owner</h3>
<p dir="ltr">If the wallet owner is known, the affected individual can contact them to negotiate a recovery. If the asset was sent to a stranger, you can attempt to identify the recipient by analyzing their transaction or following their transfers to centralized exchanges. Chances of recovery only depend on the successful identification of the recipient, although you are still dependent on the owner’s willingness to return the transferred crypto. </p>
<h2 dir="ltr">How to Avoid Sending Crypto to the Wrong Address</h2>
<p dir="ltr">In a crypto transaction, the network only validates the address structure and executes the transfer if it corresponds to a pre-configured structure. This makes it easy for users to send crypto to the wrong address. Here are some precautions you can take to reduce your chances of sending your assets to the wrong address;</p>
<h3 dir="ltr">Copy and Paste Addresses</h3>
<p dir="ltr">A cryptocurrency wallet address is usually a lengthy combination of alphanumeric characters. To ensure that the recipient's address is entered correctly, always copy and paste. Typing wallet addresses is not only time-consuming, but also increases your chances of making an error.</p>
<h3 dir="ltr">Scan QR Codes to Transfer Funds</h3>
<p dir="ltr">The scan feature automatically copies the wallet address to the recipient address box once scanned. Even then, ensure you verify everything is correct, especially the address and the amount to be sent, before confirming the transaction.</p>
<h3 dir="ltr">Double Checking</h3>
<p dir="ltr">First, verify from the recipient that they have sent the correct address. If you are sending to an exchange, ensure that the address tallies with the asset and the network. Double-checking is a general precautionary measure, for each step. Always run a second check before moving to the next step.</p>
<h3 dir="ltr">Add the Address to Your Wallet Contact List</h3>
<p dir="ltr">Cryptocurrency wallets like <a href="https://www.coingecko.com/learn/complete-beginners-guide-to-metamask" target="_blank">MetaMask</a> and <a href="https://www.coingecko.com/learn/complete-guide-to-using-trust-wallet" target="_blank">Trust Wallet</a> have an address book feature that lets users save frequently used addresses. Centralized cryptocurrency exchanges have a similar feature. Where available, save frequently used addresses to your address list to easily reuse them at will. Also, note that this feature might require you to specify the recipient’s network. Keep this in mind when sending assets to the same recipient using a different network.</p>
<h3 dir="ltr">Request for Recipient’s Domain Address</h3>
<p dir="ltr">Cryptocurrency wallet naming services like <a href="https://www.coingecko.com/learn/what-is-ethereum-name-service-and-how-does-it-work" target="_blank">Ethereum Name Service (ENS)</a> and <a href="https://www.coingecko.com/learn/what-is-unstoppable-domains-and-how-does-it-work" target="_blank">Unstoppable Domains</a> package lengthy cryptocurrency wallet addresses into human-readable domain names. This can be easily memorized. To reduce the chances of getting a recipient’s wallet address wrong, request for the domain address if available.</p>
<h2 dir="ltr">How to Recover Your Crypto if Sent to the Right Address but to the Wrong Network</h2>
<p dir="ltr">Ethereum investors can use the same wallet for every <a href="https://www.coingecko.com/learn/ethereum-virtual-machine-evm" target="_blank">EVM network</a>. In some wrong transfer cases, users select the wrong network while transferring assets to the right wallet address. In this case, the asset is not lost but sent to the wallet through the wrong network.</p>
<p dir="ltr">In this case, assets can be easily recovered by switching to the destination networks on your wallet. Recovering your asset is as easy as adding the EVM network, for users of Web3 wallets like MetaMask and Trust Wallet. If your wallet does not support multiple network integration, you can export to a more versatile wallet using your private key or seed phrase. Once imported, add the network you wrongly sent your asset to. Once this is done, you can access your asset. For instance, if you send ETH to Polygon instead of Ethereum, you can access your asset by adding the Polygon network to your wallet and switching to the network.</p>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">The decentralized nature of blockchain means that users of <a href="https://www.coingecko.com/learn/metamask-alternatives" target="_blank">non-custodial wallets</a> are responsible for their own funds. Coupled with lengthy cryptocurrency wallet addresses and how cryptocurrencies are not universal due to the siloed nature of blockchain networks, this means recovering wrongly sent assets is not an easy task.</p>
<p dir="ltr">While we’ve covered some possible recovery methods in this article, note that there are no recovery solutions for cases like sending your crypto assets to a burn, dead, or non-existent personal wallet since these wallets are inactive or have no one in control of their private keys. In this case, prevention is better than cure, and users can avoid cases like this by taking time to verify the transaction details before executing them.</p>
<p dir="ltr">Ensure that your addresses are copied correctly and verify the destination network and contract address before executing any transaction. While seeking help to recover lost funds, ensure that you use the services of reputable recovery agencies or solutions, as this is a growing area for scammers targeting desperate investors. Having said this, note that this article only discusses possible ways of recovering lost crypto assets and is not financial advice. </p>
Joel Agbohttps://www.coingecko.com/learn/what-happens-when-crypto-is-sent-to-the-wrong-address
Can I Recover Crypto Sent to the Wrong Address?
Generally the process is irreversible, as all Bitcoin and cryptocurrency transactions are final. However, if you have sent crypto to an active...tag:www.coingecko.com,2005:Post/11962024-01-12T14:27:18Z2024-01-12T07:30:44Z5 Top Crypto Exchanges In The Philippines<p><meta charset="utf-8"></p>
<h2 dir="ltr">What Are the Top 5 Crypto Exchanges in the Philippines?</h2>
<p dir="ltr">Crypto adoption rate is on the rise in the Philippines, with 10% of Filipinos holding at least one crypto asset. Here is a list of five of the top centralized crypto exchanges that you can use in the Philippines, and sorted by monthly visits based on Similarweb data: Binance, Coins.ph, Bybit, KuCoin, and PDAX.</p>
<hr>
<h3 dir="ltr">Key Takeaways</h3>
<ul>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Philipines ranks 6th in Chainalysis’s 2023 crypto adoption index. In 2023, P2P trading volume in the region jumped by 40%.</p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">The nation has remained a crypto-friendly region, with over 10% of Filipinos holding at least one crypto asset. </p>
</li>
<li aria-level="1" dir="ltr">
<p dir="ltr" role="presentation">Filipino crypto investors moved over $1.5 worth of crypto assets between 2019 and 2020 and executed over 7.2 million transactions during this time period.</p>
</li>
</ul>
<hr>
<div dir="ltr"><img alt="Top Philippines Crypto Exchanges" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9130/content_Philippines_Exchanges.webp" style="width: 950px; height: 475px;"></div>
<p dir="ltr">According to <a href="https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/" rel="nofollow noopener" target="_blank">Chainalysis’ 2023 crypto adoption index report</a>, the Philippines ranks 6th in the worldwide ranking, outpacing countries like the United Kingdom and China. Philippine cryptocurrency investors are the 7th biggest users of decentralized financial services and the region saw 40% growth in P2P trading volume of BTC in 2022. </p>
<h2 dir="ltr">State of Crypto in the Philippines</h2>
<p dir="ltr">At least one out of every 10 Filipinos own a crypto asset, with a Coindesk report claiming a <a href="https://www.coindesk.com/video/filipinos-made-money-from-web3-gaming-during-covid-what-now/" rel="nofollow noopener" target="_blank">16% penetration of crypto and blockchain technology in the region</a>. Based on data from Statista, the average crypto revenue per Filipo crypto investor was $9.60 in 2023, and is projected to grow to $11.80 by 2028.</p>
<p dir="ltr">The rise of interest in crypto in the Philippines coincides with a reported increase in inflation and suggests that Filipinos resort to crypto assets as a hedge against inflation. Based on a study by Statista, the <a href="https://www.statista.com/statistics/1315603/philippines-commonly-known-cryptocurrencies/" rel="nofollow noopener" target="_blank">most popular crypto assets in the Philippines</a> include Bitcoin (known by about 93% of respondents), Ethereum, and stablecoins (Binance USD), this is according to data provided by Statista.</p>
<p dir="ltr">Beyond blue chips, there is also an interest in low-cap altcoins, memecoins, and gamefi, with trending searches on CoinGecko including Baby Grok, Innova DeFi, Solidus Ai Tech, BERRY, Smooth Love Potion (SLP) at the time of writing. </p>
<p dir="ltr">Crypto assets are not recognized as legal tender, but they are legal in the Philippines. The laws on digital assets mandate institutions to adopt an effective KYC policy for customers and to cooperate with national agencies in mitigating money-laundering attempts and investigating cases, especially where it concerns crypto assets. Capital gains taxes on crypto income are as high as 15% in the Philippines, with most trading activities taking place on centralized and decentralized exchanges.</p>
<p dir="ltr">Now, let’s take a look at some of the top crypto exchanges in the Philippines</p>
<h2 dir="ltr">Binance – Biggest Centralized Crypto Exchange</h2>
<div dir="ltr"><img alt="Binance" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9120/content_binance.webp" style="width: 950px; height: 483px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/en/exchanges/binance" target="_blank">Binance</a> is the largest cryptocurrency exchange by daily trading volume. It offers crypto trading services for investors in several Asian countries including the Philippines. Most financial services on the platform are available to Filipino investors, however, the Peso (PHP) isn’t supported for routine spot trading as with other fiat currencies like USD, EUR, and NGN. However, investors from this region can enjoy a wide range of services on the platform. The P2P trading platform is available for trading crypto assets and the Peso.</p>
<h3 dir="ltr">Fiat Deposit Methods and Minimum Deposit</h3>
<p dir="ltr">Filipinos can purchase cryptocurrencies directly from their bank via on-ramp services provided by Binance. Direct deposits can also be made through online banking channels and the Transfi wallet.</p>
<h3 dir="ltr">Trading and Other Fees</h3>
<div dir="ltr"><img alt="Binance Trading Fees" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9121/content_binance_fees_ph.webp" style="width: 950px; height: 527px;"></div>
<p dir="ltr">A general <a href="https://www.binance.com/en-NG/fee/trading" rel="nofollow noopener" target="_blank">maker and taker fee</a> applies to spot trading on Binance. This is about 0.1% of the traded amount; lower fees apply when trading fees are paid in BNB. According to a recent announcement, <a href="https://www.binance.com/en/support/announcement/binance-p2p-will-apply-taker-fees-to-selected-fiat-markets-on-binance-lite-and-p2p-express-zone-b5292ef50cad4934aec36425b569b513" rel="nofollow noopener" target="_blank">Binance now applies a taker fee for P2P trades involving the Philippine Peso (PHP)</a>. Fiat deposit for PHP on Binance is subject to a fee of about 1.8%, although crypto deposits are free of charge. Fees for crypto withdrawals are relative to the asset and presiding network conditions. See a <a href="https://www.binance.com/en-NG/fee/fiatFee" rel="nofollow noopener" target="_blank">detailed fee structure for available fiat deposit channels on Binance</a>.</p>
<h3 dir="ltr">Customer Support Channels</h3>
<p dir="ltr">Binance has a <a href="https://t.me/BinanceFilipino" rel="nofollow noopener" target="_blank">dedicated Telegram community for Filipino crypto investors</a>. Admins in the general communities are also available to attend to user issues. Users can also create support tickets using the customer support facility available on the official website. 24/7 automated customer support services are also available. Other customer support channels include X (Twitter).</p>
<h3 dir="ltr">Safety and Security</h3>
<p dir="ltr">Binance offers user fund safety and shares Proof of Reserves documentation that proves custody of user assets. Binance also has a SAFU fund to safeguard users in the event of emergencies.</p>
<p dir="ltr">However, in spite of Binance’s popularity in the Philippines, regulators in the country have issued an advisory to the cryptocurrency exchange on November 29 2023 for operating without a license, where a <a href="https://www.reuters.com/technology/philippines-sec-block-access-worlds-largest-crypto-exchange-binance-2023-11-29/" rel="nofollow noopener" target="_blank">ban on Binance</a> would come into effect three months after the advisory was issued. </p>
<p dir="ltr">As an investor, do your own research on the regulatory status of Binance before depositing funds with the exchange.</p>
<h3 dir="ltr">KYC Requirements</h3>
<p dir="ltr">In order to use Binance, users must pass KYC verification before they can use the platform, where they have to submit personal information and documentation.</p>
<h3 dir="ltr">Additional Features</h3>
<p dir="ltr">Passive income programs on Binance include asset staking and lending services. Binance also offers other trading programs like derivatives (futures and perpetuals). </p>
<h2 dir="ltr">Coins.ph – Crypto Trading and Bill Payment Platform for Filipino Investors</h2>
<div dir="ltr"><img alt="Coins.ph" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9128/content_coins_ph.webp" style="width: 950px; height: 574px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/en/exchanges/coins-ph" target="_blank">Coins.ph</a> was founded in 2014 and hopes to ‘provide easy access to digital assets to people all over the Philippines. According to information on the platform, over 16 million Filipino investors have registered an account on the platform and over 7 million people use the platform every month. Coins.ph allows Filipinos to purchase crypto assets using Pesos. Each supported asset is paired with the PHP. Coins.ph is primarily a spot exchange for crypto assets, including Bitcoin, Ethereum, Small Love Portion (SLP), stablecoins, and several other cryptocurrencies.</p>
<h3 dir="ltr">Fiat Deposit Methods and Minimum Deposit</h3>
<p dir="ltr">Fiat deposits on the platform are available via several channels. Investors can deposit PHP into their Coins.ph accounts via bank transfers, online banking systems (E-wallet), over-the-counter (OTC) operators, and remittance centers. Cash in operations is available for most banks in the nation, while supported remittance centers include Remitly, WorldRemit, Ria, PeraHub, and others. See a detailed list of <a href="https://support.coins.ph/hc/en-us/articles/201322620-Where-can-I-cash-in-" rel="nofollow noopener" target="_blank">available cash-in channels for Coins.ph</a>.</p>
<h3 dir="ltr">Trading and Other Fees</h3>
<div dir="ltr"><img alt="Coins.ph fees" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9129/content_coins_ph_fees.webp" style="width: 876px; height: 611px;"></div>
<p dir="ltr">Coins.ph charges <a href="https://support.coins.ph/hc/en-us/articles/4407185668633-How-are-my-trading-fees-calculated-" rel="nofollow noopener" target="_blank">maker and taker fees for regular trading</a> on the platform. Trading fees are relative to the amount transacted, from available information, lesser fees are charged for higher-value trades. In general, trading fees range from 0.3% to 0.05%. <a href="https://support.coins.ph/hc/en-us/articles/201667754" rel="nofollow noopener" target="_blank">Fiat deposit fees</a> vary depending on the channel used. Fees could be as high as 2% of the deposited amount, however, some channels (like InstaPay channels) charge no fees for deposits. Peso.net channels charge no <a href="https://support.coins.ph/hc/en-us/articles/201919230-What-fees-are-charged-on-cash-outs-" rel="nofollow noopener" target="_blank">fees for withdrawals</a>, other channels charge as little as PHP15 and as high as 1.6% of the amount involved. Crypto deposits are free of charge but withdrawal fees are subject to the selected blockchain network and presiding network conditions.</p>
<h3 dir="ltr">Customer Support Channels</h3>
<p dir="ltr">Customers can reach out to the support team by creating complaint tickets on the support center. The project also runs a discord channel where users can contact support around issues they face. Users can also reach out to the Coins.ph through social networks where the project is active, this includes TikTok and Instagram.</p>
<h3 dir="ltr">Safety and Security</h3>
<p dir="ltr">Coins.ph is regulated in the Philippines as a licensed virtual currency exchange, electronic money issuer, and remittance and transfer agent. However, Proof of Reserves data is not available for Coins.ph.</p>
<h3 dir="ltr">KYC Requirements</h3>
<p dir="ltr">KYC verification is compulsory for Coins.ph users. Every user must provide the required documents for each verification level before they are able to enjoy the privileges for the concerned level. At least a Level 2 KYC verification, which requires ID and selfie verification, is <a href="https://support.coins.ph/hc/en-us/articles/4407199434265-What-are-the-deposit-and-withdrawal-limits-and-fees-in-Coins-Pro-" rel="nofollow noopener" target="_blank">required to make withdrawals</a>.</p>
<h3 dir="ltr">Additional Features</h3>
<p dir="ltr">In addition to the spot trading service for crypto assets, Coins.ph offers bill payment services for users. The <a href="https://coins.ph/pay-bills" rel="nofollow noopener" target="_blank">bill payment service</a> allows users to pay over 120 bills from their phone and also purchase load (airtime) for their mobile networks.</p>
<h2 dir="ltr">Bybit – Centralized Crypto Trading Platform With One-Click Buy</h2>
<div dir="ltr"><img alt="Bybit" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9124/content_bybit.webp" style="width: 950px; height: 434px;"></div>
<p dir="ltr"><a href="https://www.coingecko.com/en/exchanges/bybit_spot" target="_blank">Bybit</a> is a centralized cryptocurrency trading platform that supports spot and P2P trading and is available in over 100 countries including the Philippines. While the Philippine Peso is not supported for spot and derivatives trading on the platform, users can on-ramp with Bybit’s One-Click Buy feature, where crypto can be purchased through bank transfers, credit cards, P2P, or third-party applications.</p>
<h3 dir="ltr">Fiat Deposit Methods and Minimum Deposit</h3>
<p dir="ltr">Fiat deposit for the Philippine Peso is not available on Bybit. Filipino investors can purchase crypto with fiat using the <a href="https://www.bybit.com/fiat/trade/express/home" rel="nofollow noopener" target="_blank">One-Click Buy feature</a> on the platform, third-party applications or via P2P trading. Do note that there are different charges for different payment methods. At time of writing, the cheapest option is to purchase crypto through bank transfer where applicable.</p>
<h3 dir="ltr">Trading and Other Fees</h3>
<div dir="ltr"><img alt="Bybit Fees" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9125/content_bybit_fees.webp" style="width: 600px; height: 550px;"></div>
<p dir="ltr">As in the case of other exchanges, maker and taker fees apply to spot trades on Bybit. On Bybit, P2P trades are free of charge. Crypto deposits are free of charge as well, and withdrawal fees for crypto depend on the asset and associated network. </p>
<p dir="ltr">Note that fiat deposit and withdrawal are not available for the Philippine Peso.</p>
<h3 dir="ltr">Customer Support Channels</h3>
<p dir="ltr">There are dedicated social media channels for Filipino Bybit users, although it is not certain if these channels are run by the project team. Regardless, users could gain insights from these channels, although caution is advised while using them. Official customer support channels are also available. Users can create complaint tickets on the platform or use the 24/7 automated customer support services for quick response. The customer support team is also available on the official Telegram communities and social media like X, Instagram, and Facebook. </p>
<h3 dir="ltr">Safety and Security</h3>
<p dir="ltr">Proof of Reserves data for Bybit is accessible, where users can verify that Bybit has a 1:1 reserve on all user assets on the platform. In addition, the platform claims that user funds are stored securely offline in cold wallets that are further protected from unauthorized access through advanced <a href="https://www.coingecko.com/learn/mpc-wallet-vs-multi-sig-wallets" target="_blank">multi-signature</a> schemes.</p>
<h3 dir="ltr">KYC Requirements</h3>
<p dir="ltr">Like other users, Filipino investors must verify their identity by submitting personal information before they can use Bybit. Bybit delineated KYC verification levels with varying privileges for each level, where the main differences lie in withdrawal limits and access to the Bybit card (although at time of writing, the Bybit card is only available to users in eligible EEA countries and the UK).</p>
<h3 dir="ltr">Additional Features</h3>
<p dir="ltr">Bybit offers other services like crypto lending and staking services, where users can generate additional income by staking or lending their crypto assets. </p>
<h2 dir="ltr">KuCoin – P2P Trading Service for Crypto Assets</h2>
<p dir="ltr"><img alt="KuCoin" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9122/content_kucoin.webp" style="width: 950px; height: 383px;"></p>
<p dir="ltr"><a href="https://www.coingecko.com/en/exchanges/kucoin" target="_blank">KuCoin</a> is a cryptocurrency exchange that is available in over 180 countries including the Philippines. KuCoin offers spot and P2P trading services for Filipino cryptocurrency investors. PHP is not available for <a href="https://www.coingecko.com/learn/what-is-spot-trading" target="_blank">spot trading</a> on the platform; however, PHP can be traded against stablecoins, Bitcoin, and Ethereum on the P2P trading platform. </p>
<h3 dir="ltr">Fiat Deposit Methods and Minimum Deposit</h3>
<p dir="ltr">PHP isn’t supported for trading on KuCoin. However, Filipino users can purchase crypto directly by going through a third-party finance institution, where charges depend on the provider. Filipinos can also purchase crypto using the Philippine Peso on the KuCoin P2P trading platform. </p>
<h3 dir="ltr">Trading and Other Fees</h3>
<div dir="ltr"><img alt="KuCoin Fees" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9123/content_Kucoin_trading_fee.webp" style="width: 950px; height: 496px;"></div>
<p dir="ltr">KuCoin charges a maximum maker and taker fee of 0.1% for spot and derivatives trading. Trading fees can vary due to the amount traded, or the amount of <a href="https://www.coingecko.com/en/coins/kucoin-shares" target="_blank">KCS</a> held by the account. There are no fees for P2P trades, but fiat withdrawal is unavailable for the Peso. As for crypto withdrawals, these are charged according to the asset and network selected for the withdrawal.</p>
<h3 dir="ltr">Customer Support Channels</h3>
<p dir="ltr">Filipino KuCoin users can reach out to the customer support team via online tickets. They can also contact the support team on any of the project's social media profiles and communities. A 24/7 automated customer support bot is also available for quick response.</p>
<h3 dir="ltr">Safety and Security</h3>
<p dir="ltr">Proof of Reserves data for KuCoin is available. The platform claims to offer true custody of users’ funds and adds an extra layer of security by splitting users’ funds across multiple <a href="https://www.coingecko.com/learn/hot-wallet-vs-cold-wallet" target="_blank">hot and cold wallets</a>. </p>
<h3 dir="ltr">KYC Requirements</h3>
<p dir="ltr">As with investors from other regions, Filipino investors must complete basic KYC verification before they can use any service on the KuCoin platform. The KYC process involves the provision of personal information and documents, where higher verification levels offer higher withdrawal limits and more platform features.</p>
<h3 dir="ltr">Additional Features</h3>
<p dir="ltr">KuCoin offers passive income opportunities through staking programs and incentivized promotional programs. There is also an IEO platform accessible to investors from this region who wish to invest in newly launched projects. Other services on the platform include crypto lending services, and derivatives trading (futures and perpetuals).</p>
<h2 dir="ltr">PDAX – Trade Cryptocurrencies With PHP</h2>
<div dir="ltr"><img alt="PDAX" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9126/content_pdax.webp" style="width: 950px; height: 382px;"></div>
<p dir="ltr">PDAX claims to be a partner firm of the Union Bank of the Philippines. It is one of the several cryptocurrency exchanges approved by the Philippines government. PDAX offers spot crypto trading with each asset paired with the Peso (PHP). Assets supported on the platform include LiteCoin, Bitcoin, XRP, Ethereum, and others. The fiat pair system allows Filipino investors to purchase crypto in their native currency. This is in line with the platform’s goal of bringing digital assets to Filipinos. PDAX claims that users can purchase crypto assets with a capital as low as PHP200.</p>
<h3 dir="ltr">Fiat Deposit Methods and Minimum Deposit</h3>
<p dir="ltr">Several fiat deposit channels are available to PDAX users. This facilitates the deposit of PHP to the platform. The PDAX cash-in system supports deposits via online banks, E-wallets, and over-the-counter deposits. Supported online banks on the platform include InstaPay, Metro Bank, Land Bank and Union Banks, E-wallet deposit channels include G-cash, GrabPay, and Maya. Users can also deposit funds via OTC channels like Land Bank and ChinaBank.</p>
<h3 dir="ltr">Trading and Other Fees</h3>
<div dir="ltr"><img alt="PDAX trading fees" loading="lazy" src="https://assets.coingecko.com/coingecko/public/ckeditor_assets/pictures/9127/content_PDAX_fees.webp" style="width: 556px; height: 718px;"></div>
<p dir="ltr">PDAX charges fees for routine trading, fiat deposits, and crypto withdrawals. While this is prone to changes, reported trading fees on the platform are up to 0.5% of the traded amount. Crypto deposits are free of charge, although crypto withdrawal fees depend on the asset and the current network conditions. Fees charged for fiat deposits and withdrawals are not fixed and could vary depending on the financial service provider. See <a href="https://support.pdax.ph/hc/en-us/articles/5953831764377-How-much-are-the-cryptocurrency-withdrawal-fees-on-PDAX-" rel="nofollow noopener" target="_blank">detailed fees for crypto withdrawals</a> and <a href="https://support.pdax.ph/hc/en-us/articles/5922689721369-List-of-Cash-In-Payment-Channels" rel="nofollow noopener" target="_blank">transaction limits for available fiat deposit channels</a>.</p>
<h3 dir="ltr">Customer Support Channels</h3>
<p dir="ltr">PDAX operates a 24/7 automated customer support system on the platform. Users can also reach out to the customer service team directly through support tickets which can be created on the platform. Users can also reach out to the customer support team on the project’s Telegram and social media channels.</p>
<h3 dir="ltr">Safety and Security</h3>
<p dir="ltr">PDAX claims that users’ funds on the channel are secure, as they have an insurance-backed audited wallet solution. PDAX is also a regulated and licensed virtual currency exchange in the Philippines. However, do note that as of time of writing, Proof of Reserves documentation for the exchange is not available. </p>
<h3 dir="ltr">KYC Requirements</h3>
<p dir="ltr">Users must complete a basic KYC verification level before they can use any of the services offered by PDAX. <a href="https://pdax.ph/get-started#:~:text=START%20TRADING-,Account%20Levels,-Increase%20your%20transaction" rel="nofollow noopener" target="_blank">Level one KYC verification</a> allows users to transact a maximum of PHP20 million per annum. The premium KYC level allows up to PHP50 million annual transactions on the platform.</p>
<h3 dir="ltr">Additional Features</h3>
<p dir="ltr">Additional services on PDAX include <a href="https://scholarpay.pdax.ph/" rel="nofollow noopener" target="_blank">Scholar Pay</a>, a special service for the Filipino GameFi community. PDAX claims that this feature allows guilds on Axie Infinity to payout to their Scholars. Also, it runs <a href="https://mintoo.pdax.ph/" rel="nofollow noopener" target="_blank">Mintoo</a> – an NFT facility exclusive to Filipino NFT brands that allows Filipino NFT enthusiasts to trade digital collectibles. Other available features include the PDAX Prime, the highest PDAX account tier which has no explicit limits on withdrawals and deposits. </p>
<h2 dir="ltr">Summary Table of Exchanges in the Philippines</h2>
<p dir="ltr">See a comprehensive summary of the featured exchanges</p>
<table border="1" cellpadding="5" cellspacing="5" style="width:100%;">
<colgroup>
<col>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 17%;"> </td>
<td style="width:16.6%;">
<p dir="ltr" style="text-align: center;"><strong>Binance</strong></p>
</td>
<td style="width:16.6%;">
<p dir="ltr" style="text-align: center;"><strong>Coins.ph</strong></p>
</td>
<td style="width:16.6%;">
<p dir="ltr" style="text-align: center;"><strong><strong>Bybit</strong></strong></p>
</td>
<td style="width:16.6%;">
<p dir="ltr" style="text-align: center;"><strong>KuCoin</strong></p>
</td>
<td style="width:16.6%;">
<p dir="ltr" style="text-align: center;"><strong>PDAX</strong></p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Fiat deposit method</strong></p>
</td>
<td>
<p dir="ltr">Crypto can be purchased with credit card.</p>
</td>
<td>Credit card, bank transfer, OTC, remittance.</td>
<td>Crypto can be purchased with credit card and bank transfer.</td>
<td>
<p dir="ltr">Crypto can be purchased with credit card.</p>
</td>
<td>
<p dir="ltr">Credit card, bank transfer, OTC, remittance.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Services</strong></p>
</td>
<td>
<p dir="ltr">Spot, P2P, on-ramp, staking, derivatives.</p>
</td>
<td>Spot trading, on-ramp, bill payment.</td>
<td>Spot, P2P, on-ramp, staking, derivatives.</td>
<td>
<p dir="ltr">Spot, P2P, on-ramp, staking, derivatives.</p>
</td>
<td>
<p dir="ltr">Spot, on-ramp, NFT trading.</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>P2P fees</strong></p>
</td>
<td>
<p dir="ltr">0.1-0.2% taker fee</p>
</td>
<td>P2P unavailable</td>
<td>0</td>
<td>
<p dir="ltr">0</p>
</td>
<td>
<p dir="ltr">P2P unavailable</p>
</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>KYC</strong></p>
</td>
<td>
<p dir="ltr">Required</p>
</td>
<td>Required</td>
<td>Required</td>
<td>
<p dir="ltr">Required</p>
</td>
<td>Required</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Spot trading fees</strong></p>
</td>
<td>
<p dir="ltr">0.1%</p>
</td>
<td>0.05-0.3%</td>
<td>
<p>0.1%</p>
</td>
<td>
<p dir="ltr">0.1%</p>
</td>
<td>
<p dir="ltr">Up to 0.5%</p>
</td>
</tr>
<tr>
<td><strong>Regulated and licensed by BSP</strong></td>
<td>No – Advisory issued</td>
<td>Yes</td>
<td>No</td>
<td>No</td>
<td>Yes</td>
</tr>
<tr>
<td>
<p dir="ltr"><strong>Proof Of Reserves</strong></p>
</td>
<td>
<p dir="ltr">Available</p>
</td>
<td>Unavailable</td>
<td>Available</td>
<td>
<p dir="ltr">Available</p>
</td>
<td>
<p dir="ltr">Unavailable</p>
</td>
</tr>
</tbody>
</table>
<div> </div>
<h2 dir="ltr">Final Thoughts</h2>
<p dir="ltr">This article reflects on the state of cryptocurrency in the Philippines and explores some of the most popular financial institutions that offer crypto-related services. It is important to note that the list presented is not exhaustive of the available platforms for trading cryptocurrencies in the Philippines.</p>
<p dir="ltr">However, while exploring <a href="https://www.coingecko.com/learn/what-are-centralized-crypto-exchanges-cex" target="_blank">centralized exchanges</a> available in the Philippines, investors are advised to enquire about the security provisions and the general reputation of these platforms. As general advice, understand how each institution operates and what it means for you as an investor, and note that crypto investments are volatile, and risk-management measures are advised. </p>
<p dir="ltr">Also, note that this article only educates readers on the available crypto institutions in the Philippines and is not meant to be considered financial advice. Always do your own research before choosing a centralized exchange.</p>
Joel Agbohttps://www.coingecko.com/learn/top-crypto-exchanges-philippines
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