Ethereum is one of the most renowned blockchains and hosts a myriad of applications of projects that serve all sectors.
When people consider buying cryptocurrencies, they often turn to Ethereum because it’s the second-largest digital currency by market cap and has more utility cases than Bitcoin, which is the market leader. Additionally, Ethereum is also more affordable now, allowing even investors with limited funds to enter the market.
Ethereum is investors’ favorite alternative asset because it hosts the most innovative projects in the sector, enabling them to make a return on their investment. Decentralized finance, non-fungible tokens, and smart contracts stand in the Ethereum ecosystem, which shows its importance to the sector. However, considering the large number of projects built on the network, and their diversity, it might be challenging to decide which one to add to an investment portfolio. Those who buy Ethereum p2p should have a look at the following.
1. Axie Infinity
NFT games have been gaining popularity over the last few years, so there’s no surprise that Axie Infinity, which is a play-to-earn game built on the Ethereum blockchain, is listed among the most popular projects. Users collect NFTs (in the form of digital creatures) called Axies and use them to engage in fights. The game allows them to use AXS and SLP, Ethereum-native tokens, to upgrade their performance and claim rewards. AXS holders also play an active role in key governance as they can vote on what happens in the Axie Universe. Axie Infinity is currently valued at an accessible price, but specialists expect it to grow when the market bounces back.
2. Curved Finance
Curved Finance is an automated market maker and decentralized exchange platform, so it serves multiple purposes, and it’s a great addition to a portfolio that requires diversification. Curved Finance was built to enable the exchange of digital currencies without paying large transaction fees. It’s different from other blockchain-based exchanges because it was specifically designed to allow users to convert one stablecoin to another.
Therefore, those who are looking to change USDC to BUSD or USDT, and vice versa, can make great use of it. The Curved Finance protocol uses a native token named CRV, which blockchain participants can use to engage in decision-making discussions.
MakerDAO is a stable digital currency built on the Ethereum network. It’s also a project that provides blockchain users with the necessary technology for savings and borrowing. It built a protocol that allows those with a MetaMask or ETH wallet to lend the stablecoin called DAI. Users can lock ETH in MakerDAO’s smart contracts to create DAI. ETH is used as collateral for DAI loans, and users don’t have to pay any fee when they pay back their loans.
DAI is different from the other stablecoins tethered to the US dollar because its value is directly connected to the over-collateralization facilitated by the project’s protocol. Its unique protocol uses Ethereum smart contracts to lend DAI, automate collateralization and provide a series of functionalities. Crypto specialists state that MakerDAO uses a system similar to the central banking one that opens its governance to a network of MKR holders.
AAVE is a DeFi protocol that allows blockchain users to borrow and lend digital currencies without the involvement of third parties. Crypto holders make a profit by lending funds on the platform from interest. AAVE is built on the Ethereum blockchain, so it functions as a DeFi protocol that relies on smart contracts to complete transactions. Because smart contracts enable users to manage their assets, they don’t have to engage with any institution.
AAVE was built as software that could support the development of lending pools. Crypto users have to provide a sort of collateral before borrowing cryptocurrencies on AAVE, like they would have to do with any other decentralized lending system.
The native AAVE token offers multiple advantages to users, like discounts on transaction fees when using AAVE as collateral and no fee at all when they take loans using denominated tokens.
Uniswap was created as a decentralized exchange on the Ethereum network, so it doesn’t take hold of the investors’ funds. In fact, it is the most popular decentralized exchange and played a significant role in the DeFi movement because it enables coin trading. The project gained so much popularity that it drove the attention of a vampire competitor called SushiSwap, which tried to attract some of its users. Uniswap is a unique Ethereum-based project because it uses an automated market maker system to power trading. It relies on smart contracts to manage coin transactions.
When assets are traded via a centralized crypto exchange, their value is established according to their supply and demand. Traders must find someone on the opposite side of the order book to offer liquidity and engage in the transaction. But Uniswap uses a pricing algorithm that identifies the market prices of assets and incentivizes investors when they provide liquidity.
6. The Sandbox
Sandbox includes the metaverse, collectable part of projects and NFTs developed on the Ethereum network. It’s a very interesting project because it’s a mix of non-fungible tokens, metaverse, and gaming projects. Users can construct and sell digital real estate in the metaverse using Sandbox. The ecosystem also hosts an inbuilt game that allows users to play games and win rewards. They can also sell the rewards in NFT form at all marketplaces and purchase digital assets using the SAND governance token. SAND also gives people a say in governance decisions and stake the tokens they earn while playing metaverse games.
Other projects built on Ethereum that are worth investing in
– 1INCH – a decentralized exchange that aims to offer crypto users the best rates when trading currencies
– Decentraland – a virtual reality real estate platform where users can monetize their experiences and assets
– Chainlink – a decentralized network that uses Oracle software to transfer data from the real world to smart contracts
Suppose you decided to invest in alternative assets, and Ethereum captured your attention, above you have a list of projects based on the famous network that are worth a shot.
Also read: Owing To Its Diverse Use Cases, Ethereum Could Be The Best to Buy Now