Discover the types of stablecoins—fiat-backed, crypto-backed, algorithmic, and commodity-based. Learn how they work, their pros and cons, and which is best for your crypto strategy in 2025.
The cryptocurrency market is famous for volatility—Bitcoin can swing by thousands of dollars in a day, and altcoins can rise or crash in hours. But what if you need price stability? That’s where stablecoins come in.
Stablecoins are digital currencies pegged to stable assets like the US dollar, gold, or even algorithmically maintained price levels. They bridge the gap between the speed and efficiency of blockchain technology and the reliability of traditional money.
As of 2025, stablecoins account for over $140 billion in circulating supply, making them essential for traders, investors, and decentralized finance (DeFi) users. But not all stablecoins are the same—different types use different mechanisms to maintain their stability, each with unique pros and cons.
In this guide, we’ll break down the types of stablecoins, how they work, their risks, and which might be best for your needs.
What Are Stablecoins?
A stablecoin is a cryptocurrency designed to maintain a stable value by pegging its price to a reference asset. Most stablecoins are pegged to fiat currencies like the U.S. dollar (e.g., 1 USDT ≈ $1), but some track commodities (like gold) or are algorithmically balanced to hold value.
They are widely used for:
Trading: Moving quickly in and out of volatile assets.
DeFi: Providing liquidity, borrowing, and earning yields.
Remittances: Sending low-cost, fast cross-border payments.
Hedging: Protecting against crypto market volatility.
Types of Stablecoins
There are four main types of stablecoins:
Fiat‑Collateralized Stablecoins
Crypto‑Collateralized Stablecoins
Algorithmic (Non‑Collateralized) Stablecoins
Commodity‑Backed Stablecoins
Each has a different method of maintaining its peg. Let’s break them down.
1. Fiat‑Collateralized Stablecoins
Definition: These are backed 1:1 by traditional currencies like the U.S. dollar, euro, or yen. For every stablecoin issued, an equivalent amount of fiat is held in reserve by a trusted custodian.
How They Work: If you buy 1 USDC, Circle (its issuer) holds $1 in a regulated bank account or short-term U.S. Treasury securities. When you redeem that stablecoin, the issuer sends you the equivalent amount in fiat and burns the coin.
Examples:
Tether (USDT)– Largest stablecoin by market cap; widely used on exchanges.
USD Coin (USDC) – Issued by Circle, fully regulated and audited.
TrueUSD (TUSD) – Offers real-time attestation of reserves.
PayPal USD (PYUSD) – Launched by PayPal for payments and DeFi.
Pros:
High stability – Pegged directly to fiat.
Transparent – Many provide audits and attestations.
Easy adoption – Ideal for traders, merchants, and payment platforms.
Cons:
Centralization – Custodians control reserves and can freeze accounts.
Regulatory risks – Subject to government oversight.
Less transparency for some issuers – (e.g., Tether faced scrutiny over its reserves).
2. Crypto‑Collateralized Stablecoins
Definition: These are backed by cryptocurrencies like Ethereum or Bitcoin instead of fiat. Because crypto is volatile, these stablecoins are overcollateralized (e.g., $150 in ETH backs $100 in stablecoins).
How They Work: When you mint a crypto-backed stablecoin like DAI, you deposit collateral (e.g., ETH) into a smart contract. If the collateral value drops too much, the contract automatically liquidates some assets to maintain the peg.
Examples:
DAI – Issued by MakerDAO, backed by ETH, USDC, and other assets.
sUSD – A synthetic USD issued by Synthetix.
MIM (Magic Internet Money) – Collateralized by multiple crypto assets.
Pros:
Decentralized – No single company controls reserves.
Transparent – All collateral balances are viewable on-chain.
Resistant to censorship – Issuers can’t freeze accounts.
Cons:
Volatility risk – Collateral can lose value quickly, requiring liquidations.
Overcollateralization – Ties up more capital than fiat-backed options.
Complexity – Requires understanding of DeFi mechanics.
3. Algorithmic (Non‑Collateralized) Stablecoins
Definition: These don’t use physical reserves. Instead, they maintain their peg via algorithmic supply adjustments—minting or burning tokens to balance price around $1.
How They Work: If demand increases and the price rises above $1, the protocol mints more coins. If it falls below $1, the protocol burns coins or incentivizes users to buy them back.
Examples:
Ampleforth (AMPL) – Elastic supply adjusts daily.
UST (TerraUSD) – Infamously collapsed in 2022 after its peg broke.
Highly capital-efficient – Doesn’t require large reserves.
Decentralized – Often governed by smart contracts and DAOs.
Cons:
Peg instability – Prone to “death spirals” when market confidence drops.
Complex mechanisms – Harder for average users to understand.
History of failures – UST/LUNA crash eroded trust in algorithmic coins.
4. Commodity‑Backed Stablecoins
Definition: These stablecoins are pegged to commodities like gold, silver, or oil, giving them intrinsic value beyond fiat.
How They Work: For every coin issued, an equivalent amount of the commodity is held in a secure vault. For example, owning 1 PAX Gold (PAXG) means you own 1 troy ounce of physical gold stored by the issuer.
Tether Gold (XAUT) – Gold-backed token from Tether.
Digix Gold (DGX) – Pegged to gold bars in Singapore vaults.
Pros:
Hedge against inflation – Commodities like gold retain value during economic uncertainty.
Diversification – Offers exposure to both crypto and commodities.
Cons:
Low liquidity – Less widely used than fiat-backed stablecoins.
Storage & audit challenges – Requires trust in the issuer to maintain reserves.
Why Do Stablecoins Matter?
Stablecoins are the backbone of DeFi and crypto trading.
Trading & arbitrage: They provide a quick way to exit volatile positions without converting back to fiat.
Cross-border payments: Cheaper and faster than SWIFT or remittance services.
DeFi participation: Essential for lending, borrowing, yield farming, and liquidity pools.
On-ramp/off-ramp: They simplify converting between traditional finance and blockchain.
Which Type of Stablecoin Should You Use?
If you want simplicity & security: Go with fiat-backed coins like USDC or PYUSD.
If you value decentralization: Choose crypto-collateralized options like DAI.
If you’re comfortable with high risk: Explore algorithmic models like FRAX (but beware of peg risks).
If you want inflation protection: Consider commodity-backed coins like PAXG.
Key Risks of Stablecoins
Regulation: Governments are increasing oversight of fiat-backed coins.
Centralization: Some issuers can freeze funds or blacklist wallets.
Smart contract risks: DeFi-based stablecoins can suffer from bugs or exploits.
Peg breaks: Algorithmic models are especially vulnerable to confidence loss.
The Future of Stablecoins
In 2025, stablecoins are evolving to meet regulatory and market demands:
Central Bank Digital Currencies (CBDCs): Governments are issuing digital dollars and euros, potentially competing with stablecoins.
Regulated issuers: Projects like USDC are working closely with regulators to ensure compliance.
Hybrid models: Combining fiat and algorithmic elements (e.g., Frax) to enhance stability.
As DeFi expands and global adoption grows, stablecoins will remain at the heart of crypto finance.
Final Thoughts
Stablecoins are more than just “digital dollars.” They’re a critical bridge between traditional finance and blockchain innovation.
Fiat-backed stablecoins bring stability and ease of use.
Crypto-collateralized ones offer transparency and decentralization.
Algorithmic models push innovation but carry higher risks.
Commodity-backed coins provide a hedge against inflation and diversify exposure.
Choosing the right type depends on your risk tolerance, use case, and trust level. Whether for trading, saving, or participating in DeFi, understanding the types of stablecoins can help you navigate the crypto ecosystem with confidence.
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The Token Metrics Team comprises blockchain and cryptocurrency experts dedicated to providing accurate information and empowering investors. Through our blog, we aim to educate and inspire readers to navigate the world of cryptocurrencies confidently.
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The Token Metrics Team comprises blockchain and cryptocurrency experts dedicated to providing accurate information and empowering investors. Through our blog, we aim to educate and inspire readers to navigate the world of cryptocurrencies confidently.
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In today's digital age, contracts are integral to our professional and personal lives. They regulate various aspects of our interactions and are essential for the functioning of modern society. With the advent of blockchain technology, a new concept called smart contracts has emerged.
Smart contracts are computer programs or protocols that automate transactions and are stored on a blockchain.
They revolutionize how agreements are executed, making them more secure, efficient, and transparent. This article will explore smart contracts, their work, and their importance.
Understanding Smart Contracts
Smart contracts can be defined as computer programs or protocols that automate transactions based on predefined conditions. These conditions are inscribed directly into lines of code, making the contract self-executing and immutable.
Unlike traditional contracts that require intermediaries to enforce their terms, smart contracts eliminate the need for intermediaries, ensuring faster and more secure transactions.
Example of a Smart Contract
Let's consider a real-life scenario to understand the concept of smart contracts. Imagine John is a freelance graphic designer who works remotely for various clients.
He has a contract with a payment platform that utilizes blockchain technology. The platform uses smart contracts to ensure secure and transparent transactions. The smart contract is linked to a database that records the completion of design projects.
The contract is created based on the agreed terms and conditions, including timely design work delivery. The smart contract holds the client's funds until the work is completed and approved.
Once John submits the design and it is approved, the smart contract self-executes, and John is automatically paid. This process eliminates the need for intermediaries, reduces payment delays, and provides a tamper-proof payment solution.
How do Smart Contracts Work?
Now that we understand the benefits of smart contracts, let's delve into how they actually work. Smart contracts operate on a dedicated virtual machine embedded in a blockchain or other distributed ledger. The process of creating and deploying a smart contract involves several steps:
1. Defining the Desired Behavior - Business teams collaborate with developers to define the desired behavior of the smart contract. They specify the conditions and events that should trigger the execution of the contract.
2. Specifying Conditions - Conditions within the smart contract must be met to execute the contract. These conditions can range from simple events, such as payment authorization, to more complex operations, such as determining the value of a financial instrument.
3. Writing the Code - Developers write the code for the smart contract based on the defined conditions. They use a smart contract writing platform to create and test the logic. Security testing is also performed to ensure the contract's integrity.
4. Deployment on the Blockchain - Once the code is written and tested, the smart contract is deployed on a blockchain or other distributed ledger infrastructure. This involves validating the contract's validity and uploading the code to the network.
5. Triggering Contract Execution - The smart contract is configured to listen for updates from an "oracle," which is a secure data source. Once the necessary combination of events is received, the smart contract executes and performs the specified actions.
6. Recording Contract Details - The executed smart contract's details, including the terms, conditions, and execution date, are recorded on the blockchain ledger. This information is immutable and cannot be changed or removed.
Benefits of Smart Contracts
Smart contracts offer several benefits compared to traditional contracts. Let's explore some of the key advantages:
1. Accuracy, Speed, and Efficiency
Smart contracts eliminate the need for paperwork and manual processing, leading to faster and more efficient transactions. They automate the execution of agreements, reducing the time spent on correcting errors that can occur when filling out documentation by hand.
2. Trust and Transparency
Smart contracts ensure trust and transparency in transactions. Since they are stored on a blockchain, all participants can access the contract's contents and verify its execution. Information cannot be tampered with for personal gain, as a third party is not involved.
3. Security
Blockchain technology ensures the security of smart contracts. Transaction records on the blockchain are encrypted and extremely difficult to hack.
Additionally, each entry on a distributed ledger is linked to the entries before and after it, making it nearly impossible for a hacker to change a single record without altering the entire chain.
4. Cost Savings
Smart contracts eliminate the need for intermediaries in transactions, such as brokers or banks, resulting in cost savings. There are no time delays or fees associated with intermediaries, making transactions more efficient and affordable.
Use Cases of Smart Contracts
Smart contracts have numerous use cases across various industries. Let's explore some of the most prominent examples:
1. Supply Chain Management
Smart contracts can automate and streamline supply chain processes. They can track product custody, verify authenticity, and automate payments based on predefined conditions. This reduces the need for intermediaries and increases efficiency and transparency in supply chain operations.
2. Insurance
Smart contracts can revolutionize the insurance industry by automating claims processing and payouts. They can automatically verify claim eligibility, assess damages, and release payments without the need for manual intervention.
3. Digital Identity
Smart contracts can be used to create decentralized digital identity systems. Individuals can control their personal data and choose what information to share with different entities. This enhances privacy and security and reduces the risk of identity theft.
4. Voting Systems
Blockchain-based smart contracts can revolutionize voting systems by ensuring transparency and security and eliminating the possibility of fraud. Each vote is recorded on the blockchain, and the counting process is automated, eliminating the need for manual counting and potential human errors.
Limitations of Smart Contracts
While smart contracts offer numerous benefits, they are not without limitations. Some of the key limitations include:
1. Inability to Access External Data
Smart contracts cannot directly access external data sources, which can limit their functionality in certain use cases. Oracles, which are third-party services, are often used to bridge this gap and provide the necessary data to smart contracts.
2. Lack of Regulatory Clarity
The legal and regulatory frameworks surrounding smart contracts are still evolving. Issues such as taxation, government oversight, and dispute resolution need to be addressed to ensure the widespread adoption of smart contracts.
3. Scalability and Network Congestion
As blockchain networks and smart contract usage grow, scalability and network congestion can become challenges. High usage periods can impact the performance and reliability of the system, requiring continuous improvements to handle increasing transaction volumes.
Conclusion
Smart contracts are revolutionizing how agreements are executed, making transactions faster, more secure, and transparent. By automating the execution of agreements, smart contracts eliminate the need for intermediaries and reduce costs.
They offer numerous benefits, including accuracy, speed, trust, transparency, and security. While smart contracts have limitations, their potential to transform various industries is immense.
As blockchain technology evolves, smart contracts will play a crucial role in shaping the digital world's future of transactions and interactions.
Disclaimer
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.
Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.
Cryptocurrency enthusiasts and investors always look for events that can potentially impact their favorite digital assets' price and market dynamics. One such event that often generates excitement and speculation is halving.
In this comprehensive guide, we will delve into the world of Litecoin halving, exploring its meaning, the potential impact on price, and strategies for trading this critical milestone. So, fasten your seatbelts and join us on this journey to uncover the secrets of Litecoin halving.
Understanding Litecoin Halving
Litecoin, often referred to as Bitcoin's "little brother," shares many similarities with its more famous counterpart. One of these similarities is the mechanism of halving.
Litecoin halving is a process that occurs approximately every four years, reducing the mining rewards for validating transactions on the Litecoin blockchain.
This reduction in rewards has significant implications for miners, the Litecoin ecosystem, and the price of Litecoin itself.
Unlike traditional fiat currencies, which can be printed at will by central banks, cryptocurrencies like Litecoin have a limited supply. In the case of Litecoin, the maximum supply is set at 84 million coins.
The purpose of halving is to control the rate at which new Litecoins are introduced into circulation, ensuring a gradual and predictable issuance of new coins. By reducing the block rewards, Litecoin aims to maintain scarcity and prevent inflationary pressures.
The Mechanics of Litecoin Halving
To understand Litecoin halving, we must first grasp the concept of block rewards. New Litecoins are created when miners add new transactions to blocks.
The miner who successfully adds a block to the Litecoin blockchain is rewarded with a certain amount of Litecoin. This reward consists of a fixed number of new Litecoins and transaction fees included in the block.
Litecoin halving occurs after every 840,000 blocks are mined. Considering the average block mining rate of 2.5 minutes, this event takes place approximately once every four years.
During halving, the block reward is cut in half, reducing the number of Litecoins awarded to miners for validating transactions. This process will continue until no more Litecoins are left to mine, which is estimated to occur around the year 2142.
The Impact of Litecoin Halving
Litecoin halving has a twofold impact: on miners and on the price of Litecoin itself. Let's explore these effects in more detail:
Impact on Miners: Reducing block rewards directly affects miners' income. With each halving event, miners receive fewer Litecoins for their efforts in validating transactions.
This decrease in rewards can have profound implications for the mining community. On one hand, it may discourage less serious miners who are primarily motivated by potential financial gains.
On the other hand, it can create an environment where only committed and dedicated miners continue to operate, ensuring the security and stability of the Litecoin network.
Impact on Price: The halving event also has implications for the price of Litecoin. Reducing mining rewards leads to a decrease in the supply of newly minted Litecoins.
This decrease in supply, coupled with the constant demand for Litecoin, can create a supply-demand imbalance, potentially driving up the price of the LTC.
However, it is essential to note that the price action following halving events is highly unpredictable and influenced by various factors such as market sentiment, investor behavior, and overall market conditions.
Litecoin Halving History
Litecoin has already experienced halving events in its history. Let's take a closer look at some of Litecoin's halving dates:
As per the existing schedule, Litecoin halving events occur approximately every four years. The next halving is expected to occur in 2027, further reducing the block reward to 1.5625 LTC. These halving events play a vital role in controlling the issuance of new Litecoins and maintaining scarcity in the long run.
Litecoin Halving and Price Predictions
One of the most common questions surrounding Litecoin's halving is how it will impact the price of the cryptocurrency.
While it is challenging to provide an accurate prediction, historical data, and market trends can give us some insights into potential price movements.
Previous Litecoin Halving Price Trends
Looking back at the previous halvings, Litecoin's price exhibited distinct patterns following each event. Let's examine the price trends after the first and second Litecoin halvings:
First Litecoin Halving (August 25, 2015)
After the first halving, Litecoin's price initially traded sideways for over a year, entering a phase of stagnation.
While a buy-and-hold strategy may not have been the most profitable approach during this period, traders employing ranging market strategies could have capitalized on the price fluctuations.
This stagnation phase was followed by a bull phase, characterized by a significant increase in Litecoin's price over a period of six months to a year.
A pullback/bear phase eventually succeeded the bull phase, marked by a correction lasting approximately a year. Finally, Litecoin entered an accumulation phase, likely driven by pre-halving accumulation, before the cycle repeated itself with the second halving.
The second halving event saw a different price trajectory for Litecoin. Prior to the halving, Litecoin experienced an upward trend, reaching a peak in July 2019.
However, the price started to decline immediately after the halving, leading to a period of bearish sentiment. The price continued to fall until it stabilized, and the market entered a period of consolidation and accumulation.
Price Predictions for Future Halvings
Predicting the exact impact of the upcoming Litecoin halving on its price is challenging. While historical data provides some insights, it is crucial to consider other fundamental factors that influence Litecoin's price volatility and trends.
Factors such as Bitcoin's price movements, the level of adoption of Litecoin, and overall market sentiment can significantly influence the price of Litecoin in the long run.
While past halving events have historically positively impacted the price of Litecoin, it is important to note that past performance does not guarantee future results.
Market conditions and cryptocurrency prices can be highly volatile, and the future performance of Litecoin is subject to various factors and uncertainties.
Therefore, it is advisable to conduct thorough research, consider the risks associated with cryptocurrency investments, and consult a financial advisor before making any investment decisions.
Conclusion
Litecoin halving is a significant event in the world of cryptocurrencies, with potential implications for miners, the price of Litecoin, and trading strategies.
Understanding the mechanics and history of Litecoin halving can provide valuable insights for investors and traders.
While the exact impact of halving on Litecoin's price is uncertain, it is essential to consider various factors and conduct thorough research before making any investment decisions.
Whether you choose to trade Litecoin halving or explore other avenues to grow your Litecoin holdings, always remember to stay informed, manage risk effectively, and consult with professionals when needed.
Disclaimer
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.
Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.
Welcome to the world of crypto airdrops! In this article, we will explore the exciting space of upcoming crypto airdrops and how they have the potential to generate massive wealth.
As the crypto market continues to evolve and mature, airdrops have become an integral part of the ecosystem, offering investors and enthusiasts the opportunity to receive free tokens and participate in groundbreaking projects.
We will delve into the details of 16 highly anticipated projects that are set to make waves in the coming months. So buckle up and get ready for a wild ride into the world of upcoming crypto airdrops!
The Crypto Bull Run and Altcoin Season
Before we dive into the specific projects, let's take a moment to understand the context in which these airdrops are taking place. The crypto market is currently experiencing an unprecedented bull run, with Bitcoin leading the way.
As we approach the Bitcoin halving and the anticipated approval of the Bitcoin ETF, experts predict that we are on the brink of the biggest altcoin season ever. This means that while the returns on Bitcoin may start to diminish, there is still ample opportunity to make significant gains in altcoins.
The market has already surpassed the 1.7 trillion mark, and with the Bitcoin halving and ETF approval on the horizon, it is estimated that the market cap could reach as high as 14 trillion. This presents a golden opportunity for investors to capitalize on the altcoin frenzy and potentially achieve life-changing returns.
The Biggest Free Crypto Airdrops of All Time
Now, let's take a moment to reflect on some of the biggest free crypto airdrops in history. These airdrops have proven to be extremely lucrative for those who were fortunate enough to participate.
The most notable examples include Arbitrum, which distributed a staggering 12.6 billion dollars worth of tokens, with the average user receiving $2,200. Another highly successful airdrop was Uniswap, where the average participant received almost $30,000.
These figures are simply mind-boggling and highlight the immense potential of airdrops to generate wealth. However, it is important to note that not all airdrops are created equal, and careful selection is crucial to maximizing your returns.
How to Choose Promising Airdrops?
With over 600 projects to choose from, it can be overwhelming to determine which ones have the potential for significant returns. That's where Token Metrics comes in. Token Metrics is a leading platform that utilizes AI and data-driven analysis to evaluate and identify promising projects.
Their blockchain engineers and analysts have meticulously reviewed over 600 projects in the past year, focusing on two key criteria: technology and fundamentals.
Only projects that score 80% or higher in technology or have solid fundamentals are considered for inclusion in their list of potential 100x airdrops.
By leveraging their expertise and track record, you can make informed decisions and increase your chances of participating in highly lucrative airdrops.
Confirmed Crypto Airdrops
Now, let's dive into the projects that have been confirmed to have upcoming airdrops. These projects have met Token Metrics' stringent criteria and have the potential to deliver substantial returns. Here are a few projects-
1. Starknet - Starknet is a scalability solution that operates as an Ethereum ZK rollup. With a tech score of 92%, this project is as legitimate as they come. The main narrative surrounding Starknet revolves around ZK rollups and layer two solutions.
It competes with other notable projects such as Linear, Scroll, Tyco, and Polygon ZKEVM. Having raised over $100 million at an $8 billion valuation, Starknet has garnered support from prominent investors like Paradigm, Sequoia, and Taka Global. The project has also witnessed significant growth in developer activity, making it one to watch closely for its upcoming airdrop.
2. Peaq - Peaq is a layer one blockchain for depin, boasting a tech score of 89%. This project aims to compete with leading L1 solutions like Solana by offering depin layer one functionalities.
With $6 million raised and notable investors such as Fundamental Labs backing the project, Peaq has already gained traction in the market.
Their testnet, Crest, further demonstrates their commitment to delivering a robust blockchain solution. If you are bullish on depin technologies, Peaq's upcoming airdrop is one you cannot afford to miss.
3. Dymension - Dymension is a blockchain platform for rollups, specializing in building modular rollup chains. With a tech score of 87%, Dymension has proven to be a solid contender in the space.
Its key narratives revolve around rollups, modular blockchains, and appchains. Competitors such as Caldera, Outlayer, and Opside keep the project on its toes, driving innovation and growth.
With $6.7 million raised and notable investors like Big Brain Holdings and Cognitive Ventures on board, Dymension's upcoming airdrop presents an exciting opportunity for investors looking to participate in the rollup revolution.
4. Movement - Movement is another promising project that has caught the attention of Token Metrics. As an investor in Movement's seed round, Token Metrics Ventures recognizes its potential for significant returns.
Movement is a modular blockchain that utilizes the Move VM and Move programming language. With a tech score of 85%, Movement offers developers the ability to launch their own blockchain or app chain quickly and efficiently.
Its key narratives revolve around Aptos and Sui ecosystems, making it an attractive option for those bullish on these technologies. With $3.4 million raised and investors like Borderless Capital and Token Metrics Ventures backing the project, Movement's upcoming airdrop is one to watch.
5. LayerZero - The LayerZero protocol, renowned for its unique approach to interoperability, has taken the crypto community by storm with its latest strategic move – the LayerZero Airdrop.
This event represents not just a chance for enthusiasts and supporters to receive a token of appreciation but also serves as a pivotal moment for increased network participation and adoption.
The platform serves as a protocol to facilitate interoperability, employing an innovative method to simplify the integration of various blockchain networks. LayerZero Labs, the creator of this protocol, successfully secured $120 million in funding, achieving a valuation of $3 billion in April.
As the buzz continues to build, participants eagerly await further details, underscoring the community's excitement and the protocol's potential to revolutionize cross-chain communication.
Likely Crypto Airdrops
In addition to the confirmed airdrops, there are also several projects that have incentive programs in place, making their airdrops highly likely to happen.
While these projects may not have met all the criteria for a confirmed airdrop, they still present enticing opportunities for investors. Here are a few projects that fall into this category:
1. Scroll - Scroll is a native ZK-EVM Layer 2 solution for Ethereum designed to enhance scalability. With a tech score of 89%, Scroll has proven its technical prowess. Key narratives surrounding Scroll include ZK rollups and Layer 2 solutions.
Competitors such as Starknet, Tyco, and Polygon ZK-EVM keep Scroll on its toes, fostering healthy competition and driving innovation.
Having raised over $120 million at a $3 billion valuation, Scroll has garnered support from prominent investors like A16Z Crypto, Sequoia, and OpenSea. With a significant developer community and growing traction, Scroll's upcoming airdrop is definitely one to watch.
2. Linea - Linea is a project from the team behind ConsenSys, the company behind Metamask. With a tech score of 90%, Linea is a force to be reckoned with in the ZK rollup space. Its key narratives revolve around ZK rollups and Layer 2 solutions.
Competing with projects like Starknet, Tyco, and Polygon ZK-EVM, Linear has raised $450 million in a series D funding round. With over 30 million monthly active users, Linea's upcoming airdrop presents an exciting opportunity for investors looking to participate in the ZK rollup revolution.
3. Ten - Ten is an upcoming airdrop that is definitely worth keeping an eye on. Obscuro, now firmly known as Ten, is a fully encrypted layer two Ethereum rollup.
This technology essentially aids in the scalability of Ethereum. It's somewhat of a hybrid between Optimistic and ZK, utilizing trusted execution environments (essentially hardware) to encrypt transactions.
With a tech score of 89%, it was a compelling investment for us. The major narratives surrounding Ten are privacy, rollups, and L2s.
Its competitors include Askec, Secret Network, and Railgun. Other investors in Ten are Qcoin Labs, Republic Capital, Big Brain, and Cogent Ventures. I'd like to draw a comparison within the privacy space of blockchains, specifically in terms of their flexibility and robustness.
On one end of the spectrum, we have Zcash, Monero, and Aztec, which are highly robust. Then we have Ten (formerly Obscuro) and Secret Network, which offer more flexibility. This comparison provides a sense of where these entities fit within the privacy spectrum.
4. Avail - Avail is a project that spun out of Polygon, making it a part of the Polygon ecosystem. With a tech score of 87%, Avail is poised to make waves in the crypto world. Its key narratives revolve around modular and data availability.
Competing with projects like Celestia and EigenLayer. Avail has already raised significant funding, including a valuation of $1.8 billion. With a growing ecosystem of builders and developers, Avail's upcoming airdrop is one you don't want to miss.
5. Parcl - Parcl is an innovative trading platform that allows users to engage in the real estate market across various cities in real-time, offering a unique approach to property investment.
Despite being a fundamental project with limited open-source code for technical review, it has garnered a credibility score of 77%, signaling its legitimacy.
The platform's arrival is timely, especially for those who may have missed out on previous Solana airdrops, and it's certainly worth monitoring.
Parcl stands out by tapping into the derivatives space of real-world assets, particularly real estate, which distinguishes it within the market, Parcl operates within its own niche with relatively little direct competition.
The project has successfully raised $4.1 million from noteworthy investors, including Archetype, Coinbase Ventures, Shema Capital, Tribe Capital, Dragonfly Capital, and NotBoring Capital.
Parcl's platform caters to both bullish and bearish sentiments in the real estate markets of major cities like London, Miami, Dallas, or Austin, Texas, enabling users to go long or short on real estate indices without engaging in physical property transactions.
This feature particularly appeals to crypto investors seeking to diversify their portfolios into real estate while remaining within the cryptocurrency ecosystem.
Moreover, the recent launch of a community points program by Parcl has sparked speculations about a potential airdrop, drawing parallels with the strategies of FrontTech, and increasing the platform's appeal among users and investors.
Possible Crypto Airdrops
Lastly, let's explore some projects that fall into the realm of speculation and excitement. These projects have not yet confirmed an airdrop, but they are certainly worth mentioning due to their potential. Here are a few projects that have caught our attention:
1. Eclipse - Eclipse is a Layer 2 blockchain that integrates Solana's virtual machine with Ethereum. Boasting a tech score of 94%, it's an exceptionally promising project.
Its main themes involve Solana, Layer 2 solutions, and modular blockchains. After securing $15 million in funding, it has attracted backing from notable investors such as Tribe Capital and Coin List.
Given its innovative approach and the potential to bridge Solana and Ethereum, this potential airdrop is worth watching.
2. Taiko - Taiko is a decentralized Ethereum equivalent type-one ZKEVM. With a tech score of 90%, Taiko has established itself as a solid contender in the ZK rollup space. Its key narratives revolve around ZK rollups and Layer 2 solutions.
Competitors like Scroll, Linea, and Polygon ZKEVM keep Taiko on its toes, fostering healthy competition and driving innovation. With $22 million raised and investors like Qcoin Ventures and GSR backing the project, Taiko's possible airdrop presents an exciting opportunity for investors looking to participate in the ZK rollup revolution.
3. Aztec - Aztec is a private ZK rollup on Ethereum that offers privacy at scale. With a tech score of 89%, Aztec is a strong contender in the privacy space. Its key narratives revolve around ZK rollups and Layer 2 solutions.
Competitors like Ten (formerly Obscura) and Railgun keep Aztec on its toes, fostering healthy competition and driving innovation.
With $100 million raised and investors like A16Z Capital and SV Angel backing the project, Aztec's possible airdrop is worth watching.
4. ZkSync - ZkSync is a Layer 2 Zk rollup that offers scalability and privacy. With a tech score of 89%, ZkSync is a force to be reckoned with in the Zk rollup space. Its key narratives revolve around Layer 2 solutions and Zk rollups.
Competitors like Scroll, Linea, and Starknet keep ZkSync on its toes, fostering healthy competition and driving innovation. With $200 million raised and prominent investors like Dragonfly and Lightspeed backing the project, ZkSync's possible airdrop presents an exciting opportunity for investors looking to participate in the Layer 2 revolution.
5. Zetachain - Zetachain is one such project that hasn't garnered much attention. While it's purely speculative at this point, it's worth considering. Zetachain is a layer-1 blockchain designed for Omnichain interoperability.
It has a tech score of 89% and is a layer-1 and cross-chain platform. Its competitors include Cosmos, IBC, Polkadot, and Bisham Network.
Zetachain has raised $27 million to develop an interoperable layer one blockchain that can connect all chains, including Bitcoin, Cosmos, and ETH.
Its investors include blockchain.com and other investors such as Jane Street and GSR. He provides a comparison table showing how Zetachain stacks up against Cosmos, Polkadot, ThorChain, and other bridges in messaging.
It's important to note that this information is from their project, so they claim to have all capabilities. This gives an idea of its competitiveness. It's worth monitoring for a potential airdrop. This is a project that hasn't been widely discussed.
6. Astria - Astria is a decentralized shared sequencer, addressing the growing concern about the centralization of sequencers. Astria aims to resolve this issue by decentralizing and sharing them. The technology is highly credible, with an 87% legitimacy rating. The key narratives here are modular rollups.
Astria, a modular blockchain, has raised $5.5 million to construct a shared C-concern network. Its investors include Maven 11, Delphi Digital, Figment, and Robot Ventures.
But how does it operate? Astria aims to fit into the modular narrative, share a sequencer, and decentralize it. This is similar to how Celestia attempted to do the same with data availability or EigenLayer.
Now, different parts of the blockchain are being taken, in this case, the sequencer, and turned into a shared and decentralized resource.
Token Metrics: Going Fully Web3
Now, let's shift our focus to an exclusive announcement that has never been shared before. Token Metrics, a leading platform for AI-driven crypto analysis, is going fully web three in early 2024.
This means that Token Metrics embraces decentralization and offers an airdrop exclusively for their customers. As a customer of Token Metrics, you will have the opportunity to participate in their airdrop and become part of their Web Three ecosystem.
This exciting development will bring together various products, including a trading bot, indices, and a mobile application, all connected through the Token Metrics token. Look for further details and instructions on qualifying for this exclusive future airdrop.
Conclusion
In conclusion, upcoming crypto airdrops offer an incredible opportunity for investors to generate substantial wealth. By carefully selecting promising projects and leveraging the expertise of platforms like Token Metrics, you can increase your chances of participating in highly lucrative airdrops.
Whether you choose to invest in confirmed airdrops, likely airdrops, or explore the realm of speculation, it is important to do your own research and make informed decisions.
The crypto market is full of exciting opportunities, and airdrops are just one of the many ways to take advantage of this rapidly evolving ecosystem. So buckle up and prepare for the wild ride of upcoming crypto airdrops!
Disclaimer
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.
Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.