The Crypto Diary — 04/15/2022
Good afternoon everyone,
Watching the current market sentiment, nothing has seem to change since the last post. Waiting for BTC to either drop lower or bounce back to test the top trend lines. Currently, my main source of technical analysis is from Trading View where you get to see everyones opinions on what the charts are reading. I’m more of a fundamental person but will use TA (Technical analysis) to time entries into a position. With crypto, it’s hard to time the market as money seems to flow in and out when it wants, a lot driven on news or hype.
Over the week, I’ve been watching projects like $AVAX, $NEAR, and $ROUTE. In this post, I will share the data I’m watching and what I will be monitoring over the next couple years if/when I start building up a position.
$AVAX — In today’s market there are many different chains trying to accomplish the same thing, being the go to layer 1 protocol. It’s hard to tell which project will be king, next to ETH, so a data point I am watching closely is the number of dApps being built. According to Coinmarketcap, AVAX has 210 projects in their ecosystem which has surpasses Solana ($SOL), currently at 177. In this space, developers are hard to come by, so I will be watching this number closely to see where the builders are going.
What is AVAX — Avalanche? Avalanche is an open, programmable smart contracts platform for decentralized application built fast with low costs. AVAX has a processing time of 4,500 TPS with unlimited scale with subnets on a 2 second block time. This project currently sits at #10 on the ranking with a market cap of $20B.
The second project I’m watching is $NEAR. This is a younger ecosystem but something we should all be watching. Currently sitting at #18 at $10B MC, this project has room to run if the growth trend stays the same. Per Coinmarketcap, the ecosystem currently has 21 projects in the ecosystem so when compared to AVAX, a slightly more risky play when calculating the dApp to valuation ratio. Although in infant stages, the goal is for $NEAR to reach 100K TPS with 1m nodes live, which will solve the trilemma of being decentralized, scalable, and secure.This is definitely a project to watch and assuming the development continues at this pace, I hope to build up a position in this if it gets closer to a the $AVAX dApp to MC ratio ~ $2B MC or $3 at today’s data point (of course the number of dApps can increase to meet this ratio.
Lastly, $ROUTE I believe is a Gem. If you look at my old posts, I’m a big fan of interoperability and believe this is something truly needed in the space. I see this as internet connection between the different ecosystems to cross chain transact for better executions and liquidity. While other interoperability project needs to create individual bridges between each network, $ROUTE has found a way to connect each ecosystem to a single hub point allowing them to scale at a rate unseen in this space. This is groundbreaking code in my opinion and sitting around $25M Market cap, could definitely be a 100X banger if the team can execute what they promise.
With these low cap projects, the risk is always a lot higher because the uncertainty is high. This project is backed by both Coinbase and Alameda Research plus Polygon has been heavily involved in the development of $ROUTE. In other words, big name crypto companies are putting their reputation on the line for this young project. Reading the white paper and medium articles posted by Router Protocol, it is very clear the team is up to date in the markets and very knowledgable about the space overall. This is definitely a project to watch.
Thanks for reading! Will continue to monitor the markets and share updates as we come across new ideas. The goal over the next couple years is to find the next “BIG” project that will bring the blockchain space to the next level. Follow on twitter at UnDisclosed0x for live updates.
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