Bitcoin will always be the king, but layer-two solutions, DAOs, NFTs with utility, and emerging metaverses are where the real innovation and ground-breaking developments are taking place.
Something is cooking, and those with acute senses of smell can detect it. Bitcoin (BTC) is doing “Bitcoin things” by bouncing around between the usual “key” support and resistance levels, as traders have come to expect, and it’s all starting to feel a little boomerish.
Bitcoin’s long-awaited “moon” was dependent on institutional investor buy-in, which broke the previous all-time high of $19,000 and shattered a number of other long-held beliefs. All of this came to pass, and the run to $64,900 surpassed many investors’ wildest expectations. Nonetheless, if you believe that the top-ranked cryptocurrency will eventually top out around $100,000 in the current bull market, the entire BTC situation feels predictable and boring.
So, let’s get back to what’s cooking…
Decentralized autonomous organizations (DAOs), nonfungible tokens (NFTs), play-to-earn gaming, and metaverses are all hot topics right now.
This is where the real minds are right now, speculating, building, pondering, networking, and doing real work. And what distinguishes those who are truly immersed in the crypto trenches is that this grassroots approach and bottom-up building trend is yielding some of the space’s most ground-breaking projects.
Consider Dom Hofmann’s “Loot” project, or the Avalanche ecosystem’s recent Good Bridging and BridgeLoot drops.
– randomized adventurer gear
– no images or stats. intentionally omitted for others to interpret
– no fee, just gas
– 8000 bags total
available via contract only. not audited. mint at your own risk pic.twitter.com/uLukzFayUK
— dom (@dhof) August 27, 2021
Loot was minted for free by interested participants willing to pay the gas costs, and the community ascribed value to the NFTs via OpenSea sales, rather than donning a suit, putting together a C-suite-friendly presentation, and chasing after venture capital dollars.
A flurry of Discord discussions determined the value of new ideas, and anyone with an idea was free to launch their own derivative contract, allowing Loot holders to repeat the minting and listing cycle.
Will Papper’s 10,000 Adventure Gold (AGLD) airdrop to Loot NFT holders quickly became worth over $50,000, propelling the entire project to fame and into the history books. Some say it was essentially the Yearn.finance of NFTs.
There is a tectonic shift underway.
What makes Loot so interesting is that it has established the precedent for what is quickly becoming a new drop model in the space. The procedure entails creating a product (whether it’s an NFT or a protocol), informing an interested community, and allowing them to mint tokens for free within a supply range of 7,777–10,000. The creators then leave the rest to the community, speculators, believers, and OpenSea.
Hofmann told the entire family that the project was theirs to do whatever they wanted with it, essentially saying, “This is yours!” Go forth and construct, my children!” The anonymous brains behind the Good Bridging (GB) token drop did the same thing, but with even less direction.
Basically, 16,000 early users of Avalanche’s Ethereum-to-Avalanche bridge received an 895-GB token airdrop, which was worth about $2,300 at its peak price of $2.60 per GB. Isn’t that pretty?
Furthermore, GB holders who did not immediately liquidate the drop were eligible to receive a gasless BridgeLoot NFT as a reward, and the Avalanche-based NFT marketplace Snowflake verified and listed BridgeLoot a few hours later, where many holders listed their NFTs for 20–100 AVAX.
From the standpoint of the markets, money chases after money. Liquidity is sought by investors, and this is part of what drives market price action.
Hundreds of millions of dollars are shifting from Ether (ETH) to Fantom (FTM), or ETH to Arbitrum (ARB), or ETH to Avalanche (AVAX), or ETH to Terra (LUNA), or ETH and USD Coin (USDC) to Web 3.0-based decentralized exchanges like dYdX and GMX, as a result of all the layer-one incentive launches.
The point is that cryptocurrency is influenced by trends and liquidity. The whole Loot craze let the cat out of the bag, revealing a feature that had always been there but had only recently been discovered.
Bottom-up fundraises, NFTs with metaverse utility, DAOs, and the great liquidity suck into a layer-two ecosystem will all be around for a long time.