The combined market cap of cryptocurrencies has surpassed $2 trillion this year and is holding on strong. If anything, we are currently entering a golden era of crypto investing. Along with tech companies, digital currencies are at the forefront of the fourth industrial revolution that is elevating mankind into virtual reality.
So it's definitely a good time to check out the most promising cryptoscurrencies in the blockchain industry, Ethereum (ETH +4.16%), Binance Coin (BNB +1.57%), and Chainlink (LINK +2.91%). Over the past year, the cryptos are up 825%, 1,320%, and 169%, respectively.
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1. Ethereum
Ethereum is at the heart of the $220 billion decentralized finance (DeFi) market that is rapidly revolutionizing the blockchain cyberspace as we know it. For starters, ETH is the native currency of OpenSea.io, the biggest marketplace for non-fungible tokens in the world. Due to digital arts' generous tax treatment when donated, their trading volume has surpassed 883,111 ETH in the past 30 days -- amounting to over $3 billion.
Next, there are decentralized exchanges (DEX) built on the Ethereum blockchain like Uniswap. It hasn't been even two years since the platform's launch, but investors are now buying and selling up to $1.5 billion worth of altcoins on Uniswap per day. After that, there's Aave, which enables investors to earn interest on deposits and take out asset loans. Aave is built on the Ethereum network. Total value locked on Aave has eclipsed $18 billion.
Finally, Ethereum is innovating the video game industry, with developers releasing games such as Axie Infinity. Like Pokémon, Axie Infinity is a monster-battle game featuring creatures called "Axies," except that each Axie is a collectible NFT available for trading on the Ethereum blockchain. The game has skyrocketed in popularity in the past year, with over 250,000 daily active players and $557 million worth of Axies exchanging hands in the past month. For these reasons, Ethereum is a top cryptocurrency to buy now.
2. Binance Coin
Binance is the largest cryptocurrency exchange globally, facilitating over $24 billion worth of crypto trades each day. But it's not simply a one-trick pony brokerage; Binance is entering full-throttle into the crypto ecosystem with a coin of its own -- Binance Coin.
Similar to Ethereum, BNB supports smart contract functionality and powers a variety of DeFi projects, the most promising of which is DEX PancakeSwap. Over 2,155 altcoins are currently available for trading on PancakeSwap. In fact, it is now the third most popular DEX in the world with over $1 billion worth of daily trading volume.
But unlike Ethereum, Binance Coin is subject to heavy deflationary pressure due to a protocol similar to stock buybacks. Its developers have pledged to burn 100 million out of 200 million coins outstanding using trading profits from Binance every quarter. Back in the second quarter, over $595 million worth of BNB was taken out of circulation, and there are now 168 million coins remaining. So definitely add this promising coin to your portfolio.
3. Chainlink
Chainlink is a token built on the Ethereum blockchain that seeks to greatly expand the latter's functionality and other blockchains. It does this by enabling smart contracts to access real-world data, such as price feeds. The most immediate use for this technology is on DeFi platforms like Aave and dYdX, both of which are utilizing the Chainlink network.
With the help of Chainlink, Aave developers can facilitate loan settlements, collateral liquidation, and interest payments based on the real-time prices of cryptocurrency assets. dYdX is the biggest DEX in the world with a market share of close to 30%. Futures, derivatives, and margin trading volume on dYdX has surpassed $89.7 billion since February. Chainlink plays a critical role in its success by providing accurate and reliable crypto asset prices for its trading instruments. As a result, this is one promising crypto that you don't want to miss.
