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Stop Guessing, Start Trading: The Token Metrics API Advantage

Announcements

Big news: We’re cranking up the heat on AI-driven crypto analytics with the launch of the Token Metrics API and our official SDK (Software Development Kit). This isn’t just an upgrade – it's a quantum leap, giving traders, hedge funds, developers, and institutions direct access to cutting-edge market intelligence, trading signals, and predictive analytics.

Crypto markets move fast, and having real-time, AI-powered insights can be the difference between catching the next big trend or getting left behind. Until now, traders and quants have been wrestling with scattered data, delayed reporting, and a lack of truly predictive analytics. Not anymore.

The Token Metrics API delivers 32+ high-performance endpoints packed with powerful AI-driven insights right into your lap, including:

  • Trading Signals: AI-driven buy/sell recommendations based on real-time market conditions.
  • Investor & Trader Grades: Our proprietary risk-adjusted scoring for assessing crypto assets.
  • Price Predictions: Machine learning-powered forecasts for multiple time frames.
  • Sentiment Analysis: Aggregated insights from social media, news, and market data.
  • Market Indicators: Advanced metrics, including correlation analysis, volatility trends, and macro-level market insights.

Getting started with the Token Metrics API is simple:

  1. Sign up at www.tokenmetrics.com/api
  2. Generate an API key and explore sample requests.
  3. Choose a tier–start with 50 free API calls/month, or stake TMAI tokens for premium access.
  4. Optionally–download the SDK, install it for your preferred programming language, and follow the provided setup guide.

At Token Metrics, we believe data should be decentralized, predictive, and actionable. 

The Token Metrics API & SDK bring next-gen AI-powered crypto intelligence to anyone looking to trade smarter, build better, and stay ahead of the curve. With our official SDK, developers can plug these insights into their own trading bots, dashboards, and research tools – no need to reinvent the wheel.

Research

The Complete Tax Optimization Guide for Crypto Index Investors: Strategies to Keep More of Your Returns

Token Metrics Team
12 min read

Generating impressive returns through Token Metrics crypto indices represents only half the wealth-building equation. The other half—often overlooked by investors focused solely on performance—involves minimizing taxes that can consume 30-50% of your gains. Every dollar paid unnecessarily in taxes is a dollar that can't compound into future wealth.

Cryptocurrency taxation presents unique complexities that differ significantly from traditional investments. However, these complexities also create optimization opportunities unavailable with stocks or bonds. Understanding and implementing sophisticated tax strategies can add 2-5 percentage points to your effective annual returns—enough to transform good investment outcomes into exceptional ones over decades.

This comprehensive guide explores tax optimization for crypto index investors, examining current tax treatment, strategies for minimizing tax liability, retirement account advantages, loss harvesting techniques, and long-term tax planning that maximizes after-tax wealth accumulation.

Understanding Crypto Index Taxation: The Fundamentals

Before implementing optimization strategies, understand how crypto indices are taxed.

  • Capital Gains Treatment: Cryptocurrency is treated as property by the IRS. Short-term gains (held under one year) are taxed as ordinary income at rates up to 37%. Long-term gains (held over one year) qualify for preferential rates of 0%, 15%, or 20% depending on income—this dramatic difference makes holding period crucial.
  • Index Rebalancing: Token Metrics indices periodically rebalance, with each transaction potentially triggering taxable events in taxable accounts. However, this also creates loss harvesting opportunities during downturns.
  • Crypto-to-Crypto Trading: Every crypto-to-crypto trade triggers taxable gains or losses. Rebalancing from Bitcoin to Ethereum or between indices creates taxable events even without converting to dollars. Track all transactions meticulously.

Tax-Advantaged Account Strategies: The Foundation

The single most powerful tax optimization strategy involves using retirement accounts for crypto index investing when possible.

Roth IRA: The Ultimate Tax Shelter

Roth IRAs offer unmatched tax advantages for crypto indices:

  • Tax-Free Growth Forever: All appreciation inside Roth IRAs grows completely tax-free with no taxes due at withdrawal after age 59½
  • No RMDs: Unlike traditional IRAs, Roth IRAs have no required minimum distributions, allowing indefinite tax-free compounding
  • Estate Planning Benefits: Beneficiaries inherit Roth IRAs tax-free, creating powerful generational wealth transfer vehicles
  • Rebalancing Without Tax Consequences: Index rebalancing inside Roth IRAs triggers no taxable events—rebalance freely without tax concerns

Strategy: Maximize Roth IRA contributions annually ($7,000 for 2024, or $8,000 if age 50+) allocating these funds to crypto indices. If crypto appreciates 40% annually for 30 years, that initial $7,000 grows to over $10 million completely tax-free.

Traditional IRA: Tax-Deferred Compounding

Traditional IRAs offer different but still valuable benefits:

  • Immediate Tax Deduction: Contributions reduce current taxable income, providing immediate tax savings
  • Tax-Deferred Growth: No taxes due on appreciation until withdrawal, allowing full portfolio value to compound
  • Strategic Conversions: Can convert to Roth IRA during low-income years, paying taxes at lower rates

Strategy: If current tax bracket is high, contribute to traditional IRA for immediate deduction. Later, convert to Roth IRA during years with lower income (perhaps early retirement before Social Security begins), paying taxes at reduced rates.

Self-Directed IRA Considerations

Standard IRA custodians often don't support cryptocurrency. Self-directed IRA custodians like Alto, iTrustCapital, or BitcoinIRA specifically facilitate crypto holdings within retirement accounts.

These specialized custodians charge higher fees than traditional brokers but the tax benefits far exceed fee costs. Research custodians thoroughly, understanding fee structures, supported cryptocurrencies, and withdrawal processes before opening accounts.

401(k) and Employer Plans

Some employers now offer cryptocurrency options in 401(k) plans. If available, consider allocating portions of 401(k) contributions to crypto indices, capturing tax advantages while maintaining employer matching benefits.

If employer plans don't support crypto, maximize employer match in 401(k), then open self-directed IRA for crypto allocation. This ensures you capture free employer money while still achieving desired crypto exposure in tax-advantaged accounts.

Tax-Loss Harvesting: Turning Losses Into Advantages

Crypto volatility creates frequent opportunities for tax-loss harvesting—deliberately selling positions at losses to offset gains elsewhere in your portfolio.

How Tax-Loss Harvesting Works

When you sell investments at losses, those losses offset capital gains dollar-for-dollar. If losses exceed gains, you can deduct up to $3,000 annually against ordinary income, carrying forward excess losses to future years indefinitely.

Example: Your index appreciates $50,000 during the year (creating potential $50,000 gain when sold). Another index declined $20,000. By selling the losing position, you harvest $20,000 in losses reducing your taxable gain to $30,000 and saving $4,000-7,400 in taxes depending on your bracket.

The Wash Sale Rule Exception

Stock investors face "wash sale rules" preventing them from selling securities at losses and repurchasing identical or substantially identical securities within 30 days. This rule prevents gaming the system through artificial loss harvesting.

Currently, cryptocurrency is not subject to wash sale rules. You can sell Bitcoin at a loss and immediately repurchase it, maintaining market exposure while harvesting tax losses. This provides enormous optimization opportunities unavailable with traditional securities.

Note: Proposed legislation may extend wash sale rules to crypto in the future. Consult tax professionals about current regulations when implementing strategies.

Strategic Loss Harvesting During Bear Markets

Bear markets present exceptional loss harvesting opportunities. As indices decline 50-70%, systematically harvest losses while maintaining exposure through immediate repurchases or similar but not identical indices.

Strategy: During significant market declines, harvest losses in aggressive growth indices while simultaneously purchasing conservative indices. This maintains crypto exposure while capturing substantial tax losses. Reverse the process during recovery, moving back to aggressive indices.

Year-End Tax Planning

Review portfolio in November-December identifying loss harvesting opportunities before year-end. Tax losses must be realized by December 31st to count for current tax year.

However, don't let tax tail wag investment dog—never sell positions solely for tax purposes if doing so undermines long-term strategy. Harvest losses strategically within context of overall investment plan.

Cost Basis Tracking and Optimization

Accurate cost basis tracking enables optimizing which specific shares you sell, minimizing taxes on each transaction.

  • Specific Identification Method: The IRS allows designating which specific shares you're selling. Different purchases have different cost bases. Example: You bought Bitcoin at $20,000, $30,000, and $40,000. When selling, specify the $40,000 purchase (highest cost basis) minimizing gains. Without this, IRS defaults to FIFO (first-in-first-out).
  • Tracking Requirements: Maintain detailed records of all transactions—date, amount, price, fees for every purchase and sale. Use crypto tax software like CoinTracker, TokenTax, or Koinly for automatic tracking.
  • HIFO Strategy: When selling, use specific identification to sell highest cost basis units first, minimizing current taxes. However, consider long-term planning—sometimes triggering long-term capital gains proves more efficient than selling high basis short-term holdings.

Charitable Giving Strategies

Donating appreciated crypto to qualified charities creates powerful tax advantages.

Direct Crypto Donations

Donating appreciated crypto held over one year to 501(c)(3) charities provides:

  • Fair Market Value Deduction: Deduct full current value of donated crypto from taxable income
  • No Capital Gains Tax: Never pay capital gains taxes on appreciation—donating Bitcoin purchased at $10,000 now worth $60,000 provides $60,000 deduction without paying taxes on $50,000 gain
  • Double Tax Benefit: Avoid capital gains tax AND receive income tax deduction

Strategy: If planning charitable giving, donate appreciated crypto instead of cash. This optimization is especially powerful during high-income years where deductions provide maximum value.

Donor-Advised Funds

Donor-advised funds (DAFs) through Fidelity Charitable, Schwab Charitable, or specialized crypto DAF providers accept cryptocurrency donations, providing immediate tax deductions while allowing you to recommend grants to charities over time.

Strategy: During exceptionally profitable years, donate substantial appreciated crypto to DAF, capturing large tax deduction. Then distribute to charities gradually over subsequent years based on your philanthropic priorities.

Qualified Charitable Distributions

While this doesn't apply to crypto directly, investors over age 70½ can make qualified charitable distributions from IRAs up to $100,000 annually. These distributions satisfy required minimum distributions while excluding amounts from taxable income.

Strategy: Use QCDs for charitable giving from traditional IRAs while preserving appreciated crypto in Roth IRAs for tax-free growth.

Strategic Timing of Income Recognition

Controlling when you recognize taxable income significantly impacts lifetime tax burden.

Multi-Year Tax Rate Planning

Tax rates vary year-to-year based on income. Strategic timing of crypto sales can minimize rates paid:

  • Low-Income Years: Harvest gains during years with unusually low income (sabbaticals, between jobs, early retirement) when lower tax brackets apply
  • High-Income Years: Defer gain recognition during peak earning years when tax rates reach maximum levels
  • Zero-Percent Bracket Arbitrage: Those in 0% long-term capital gains bracket (2024: single filers under $44,625 income) can sell appreciated crypto tax-free

Strategy: If taking year off or experiencing income decline, sell appreciated crypto indices locking in gains at 0-15% rates. Then immediately repurchase, establishing higher cost basis for future sales.

Roth Conversion Timing

Converting traditional IRA crypto holdings to Roth IRAs triggers taxable income. However, strategic timing minimizes tax costs:

  • Convert during bear markets when crypto values are depressed—taxes owed on $100,000 crypto worth $50,000 after crash saves substantial taxes versus converting at peak
  • Convert during low-income years before Social Security or RMDs begin, utilizing lower tax brackets
  • Convert gradually across multiple years avoiding bracket creep rather than large one-time conversions

Strategy: During crypto bear markets, convert traditional IRA crypto holdings to Roth when values are temporarily depressed. Pay taxes on depressed values, then enjoy full recovery tax-free inside Roth.

State Tax Considerations

State taxes significantly impact after-tax returns. No-income-tax states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) tax only at federal level. High-tax states like California (13.3%), New York (10.9%), and New Jersey (10.75%) add substantial state taxes on crypto gains.

Strategic Relocation: High earners sometimes relocate to no-tax states before realizing substantial gains. Moving from California to Texas before selling $5 million in appreciated crypto saves $665,000 in state taxes. However, states scrutinize such moves—establishing legitimate domicile requires genuine ties including residence, voter registration, driver's license, and spending majority of year in new state. Consult tax attorneys about timing and requirements.

Estate Planning and Generational Tax Efficiency

  • Step-Up in Basis: Heirs inherit assets at fair market value on date of death rather than original purchase price, eliminating all capital gains taxes on lifetime appreciation. Example: Bitcoin bought at $10,000 worth $1 million at death—heirs inherit at $1 million basis owing no taxes on $990,000 appreciation. Don't unnecessarily sell appreciated crypto late in life if leaving to heirs.
  • Roth IRA Stretch: Beneficiaries inheriting Roth IRAs stretch distributions over lifetimes, allowing decades of continued tax-free compounding. Keep highest-growth assets (aggressive crypto indices) in Roth IRAs for maximum multi-generational benefit.
  • Annual Gift Exclusions: Gift up to $18,000 per recipient annually (2024) without gift tax consequences. Gifting appreciated crypto to family members in lower tax brackets can enable tax-free liquidation if they're in 0% capital gains bracket.

Working With Tax Professionals

Crypto tax complexity exceeds most investors' expertise. Professional guidance prevents costly mistakes and identifies optimization opportunities you'd otherwise miss.

When to Hire Crypto Tax Specialists

Consider specialized crypto tax professionals if you:

  • Have crypto holdings exceeding $50,000-100,000
  • Execute frequent transactions across multiple platforms
  • Use DeFi protocols alongside index investing
  • Face complex situations like overseas accounts or business use
  • Plan major liquidations or Roth conversions

Generic accountants often lack crypto expertise. Seek specialists with demonstrated cryptocurrency tax experience through credentials like the Certified Public Accountant (CPA) designation plus crypto-specific training.

Cost-Benefit of Professional Advice

Professional crypto tax planning costs $500-5,000+ annually depending on complexity. However, identifying even single optimization opportunity often saves multiples of professional fees.

Example: CPA costs $2,000 annually but identifies loss harvesting opportunity saving $8,000 in taxes, Roth conversion strategy saving $15,000 over five years, and charitable giving optimization saving $5,000. Total value: $28,000 for $2,000 investment.

Conclusion: Tax Efficiency Compounds Into Wealth

Tax optimization isn't about gaming the system or taking questionable positions—it's about structuring investments to legally minimize taxes within established rules. The difference between paying 37% short-term capital gains rates versus 0-15% long-term rates, or paying no taxes via Roth IRAs, compounds into hundreds of thousands or millions over decades.

Token Metrics indices provide world-class investment performance, but keeping more of those returns through strategic tax planning determines your actual wealth accumulation. A 45% annual return becomes 28% after-tax at high ordinary income rates—but remains 45% tax-free in Roth IRA.

Begin implementing tax optimization strategies today. Maximize tax-advantaged account contributions, implement systematic loss harvesting, track cost basis meticulously, time income recognition strategically, and work with qualified professionals for complex situations.

Your future self will appreciate the six-figure or seven-figure tax savings generated through disciplined tax optimization as much as the strong investment returns from Token Metrics indices. Combined, they create unstoppable wealth accumulation.

Start your 7-day free trial today and begin building tax-efficient crypto wealth through Token Metrics indices combined with strategic tax optimization.

Research

Avalanche (AVAX) 2027 Price Targets: Token Metrics Scenarios

Token Metrics Team
6 min read

AVAX in the 2027 Landscape

The Layer 1 competitive landscape is consolidating as markets recognize that specialization matters more than being a generic alternative to Ethereum. Avalanche positions itself in this multi-chain world with specific technical and ecosystem advantages. Infrastructure maturity around custody, bridges, and developer tooling makes alternative L1s more accessible heading into 2026.

The scenario projections below map different market share outcomes for AVAX across varying total crypto market sizes. Base cases assume Avalanche maintains current ecosystem momentum, while moon scenarios factor in accelerated adoption, and bear cases reflect increased competitive pressure.

  

Disclosure

Educational purposes only, not financial advice. Crypto is volatile, do your own research and manage risk.

How to read it: Each band blends cycle analogues and market-cap share math with TA guardrails. Base assumes steady adoption and neutral or positive macro. Moon layers in a liquidity boom. Bear assumes muted flows and tighter liquidity.

TM Agent baseline: Token Metrics lead metric for Avalanche, cashtag $AVAX, is a TM Grade of 66.2%, which maps to Hold, and the trading signal is bearish, indicating short-term downward momentum. Concise long-term numeric view, 12-month horizon: Token Metrics’ scenarios center around a price band roughly between $15 and $40, with a base case near $25. Market context: Bitcoin’s direction remains the primary market driver, so broader crypto risk-on conditions are required for $AVAX to reach the higher scenario.

Live details: Avalanche Token Details

Buy AVAX on Gemini

Affiliate Disclosure: We may earn a commission from qualifying purchases made via this link, at no extra cost to you.

Key Takeaways

  • Scenario driven, outcomes hinge on total crypto market cap, higher liquidity and adoption lift the bands.
  • Fundamentals: Fundamental Grade 91.63% (Community 82%, Tokenomics 100%, Exchange 100%, VC 97%, DeFi Scanner 83%).
  • Technology: Technology Grade 80.52% (Activity 80%, Repository 72%, Collaboration 93%, Security 59%, DeFi Scanner 83%).
  • TM Agent gist: AVAX shows decent fundamentals with a Hold grade, short-term momentum is bearish, and a 12-month range clusters around $15 to $40 with a base near $25.
  • Education only, not financial advice.

Scenario Analysis

Token Metrics scenarios span four market cap tiers, each representing different levels of crypto market maturity and liquidity:

  • 8T: At an eight trillion dollar total crypto market cap, AVAX projects to $45.63 in bear conditions, $54.07 in the base case, and $62.50 in bullish scenarios.  
  • 16T: Doubling the market to sixteen trillion expands the range to $97.92 (bear), $123.23 (base), and $148.53 (moon).  
  • 23T: At twenty-three trillion, the scenarios show $150.20, $192.38, and $234.56 respectively.  
  • 31T: In the maximum liquidity scenario of thirty-one trillion, AVAX could reach $202.49 (bear), $261.54 (base), or $320.59 (moon).  

Each tier assumes progressively stronger market conditions, with the base case reflecting steady growth and the moon case requiring sustained bull market dynamics.

Why Consider the Indices with Top-100 Exposure

Avalanche represents one opportunity among hundreds in crypto markets. Token Metrics Indices bundle AVAX with top one hundred assets for systematic exposure to the strongest projects. Single tokens face idiosyncratic risks that diversified baskets mitigate.

Historical index performance demonstrates the value of systematic diversification versus concentrated positions.

Join the early access list

What Is Avalanche?

Avalanche is a smart-contract platform known for high throughput, low latency, and a modular subnet architecture. It aims to support decentralized finance, gaming, and enterprise applications with fast finality and cost-efficient transactions.

AVAX is the native token used for fees, staking, and network security, and it powers activity across application subnets. The ecosystem positions Avalanche among leading Layer 1s competing for developer mindshare and user adoption.

Token Metrics AI Analysis

Token Metrics AI provides comprehensive context on Avalanche's positioning and challenges.

Vision: Avalanche aims to provide a highly scalable, secure, and decentralized platform for launching custom blockchains and decentralized applications. Its vision centers on enabling a global, open financial system and supporting a diverse ecosystem of interoperable blockchains.

Problem: Many blockchain networks face trade-offs between speed, security, and decentralization, often resulting in high fees and slow transaction times during peak demand. Avalanche addresses the need for a scalable and efficient infrastructure that can support widespread adoption of dApps and enterprise use cases without compromising on performance or security.

Solution: Avalanche uses a novel consensus mechanism that achieves rapid finality with low energy consumption, differentiating it from traditional Proof-of-Work systems. It employs a three-chain architecture—Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain)—to separate functions like asset creation, staking, and smart contract execution, enhancing efficiency and scalability.

Market Analysis: Avalanche operates in the competitive Layer 1 blockchain space. It differentiates itself through its consensus protocol and support for subnet-based custom blockchains. Adoption is influenced by developer activity, partnerships, and integration with major DeFi protocols, with risks from technological shifts and regulatory developments.

Fundamental and Technology Snapshot from Token Metrics

Fundamental Grade: 91.63% (Community 82%, Tokenomics 100%, Exchange 100%, VC 97%, DeFi Scanner 83%).  

Technology Grade: 80.52% (Activity 80%, Repository 72%, Collaboration 93%, Security 59%, DeFi Scanner 83%).  

Catalysts That Skew Bullish

  • Institutional and retail access expands with ETFs, listings, and integrations.
  • Macro tailwinds from lower real rates and improving liquidity.
  • Product or roadmap milestones such as upgrades, scaling, or partnerships.

Risks That Skew Bearish

  • Macro risk-off from tightening or liquidity shocks.
  • Regulatory actions or infrastructure outages.
  • Concentration or validator economics and competitive displacement.

FAQs

Can AVAX reach $200?

Answer: Based on the scenarios, AVAX could reach $200 in the 31T bear case at $202.49. The 31T tier also shows $261.54 in the base case and $320.59 in the moon case. Not financial advice.

Can AVAX 10x from current levels?

Answer: At a current price of $19.62, a 10x would reach $196.20. This falls within the 31T bear, base, and moon cases, and the 23T moon case at $234.56. Bear in mind that 10x returns require substantial market cap expansion. Not financial advice.

Should I buy AVAX now or wait?

Answer: Timing depends on your risk tolerance and macro outlook. Current price of $19.62 sits below the 8T bear case at $45.63. Dollar-cost averaging may reduce timing risk. Not financial advice.  

Next Steps

Disclosure

Educational purposes only, not financial advice. Crypto is volatile, do your own research and manage risk.

Powered by Token Metrics

Our team delivers scenario-driven price projections, in-depth grades, and actionable indices to empower smarter crypto investing—with both human and AI insights.

Research

Hedera (HBAR) 2027 Price Targets: Token Metrics Scenarios

Token Metrics Team
8 min read

Portfolio Context for Hedera: Diversification in the 2027 Landscape

Layer 1 tokens like Hedera represent bets on specific blockchain architectures winning developer and user mindshare. HBAR carries both systematic crypto risk and unsystematic risk from Hedera's technical roadmap execution and ecosystem growth. Multi-chain thesis suggests diversifying across several L1s rather than concentrating in one, since predicting which chains will dominate remains difficult.

The projections below show how HBAR might perform under different market cap scenarios. While Hedera may have strong fundamentals, prudent portfolio construction balances L1 exposure across Ethereum, competing smart contract platforms, and Bitcoin to capture the sector without overexposure to any single chain's fate.

  

Disclosure

Educational purposes only, not financial advice. Crypto is volatile, do your own research and manage risk.

How to read it: Each band blends cycle analogues and market-cap share math with TA guardrails. Base assumes steady adoption and neutral or positive macro. Moon layers in a liquidity boom. Bear assumes muted flows and tighter liquidity.

TM Agent baseline:

Token Metrics lead metric for Hedera, cashtag $HBAR, is a TM Grade of 61.8%, which maps to Hold, and the trading signal is bearish, indicating short-term downward momentum. This means Token Metrics views $HBAR as having reasonably solid fundamentals but limited conviction for strong outperformance in the near term.

A concise long-term numeric view for a 12-month horizon: Token Metrics scenarios center around a range of about $0.06 to $0.18, with a base case near $0.10, reflecting steady ecosystem growth, moderate adoption of Hedera services, and continued enterprise partnerships. Implication: if Bitcoin and broader crypto risk appetite improve, $HBAR could revisit the higher end, while a risk-off market or slower-than-expected developer traction would keep it toward the lower bound.

Live details: Token Details

Key Takeaways

  • Scenario driven, outcomes hinge on total crypto market cap, higher liquidity and adoption lift the bands.
  • Single-asset concentration amplifies both upside and downside versus diversified approaches.
  • Fundamentals: Fundamental Grade 81.08% (Community 74%, Tokenomics 100%, Exchange 100%, VC 59%, DeFi Scanner 85%).
  • Technology: Technology Grade 62.39% (Activity 58%, Repository 68%, Collaboration 74%, Security 56%, DeFi Scanner 85%).
  • TM Agent gist: bearish short term, range view with upside if crypto risk appetite improves.
  • Education only, not financial advice.

Scenario Analysis

Token Metrics scenarios span four market cap tiers, each representing different levels of crypto market maturity and liquidity:

  • 8T: At an 8 trillion dollar total crypto market cap, HBAR projects to $0.27 in bear conditions, $0.32 in the base case, and $0.37 in bullish scenarios.  
  • 16T: Doubling the market to 16 trillion expands the range to $0.42 (bear), $0.57 (base), and $0.72 (moon).  
  • 23T: At 23 trillion, the scenarios show $0.56, $0.82, and $1.07 respectively.  
  • 31T: In the maximum liquidity scenario of 31 trillion, HBAR could reach $0.71 (bear), $1.07 (base), or $1.42 (moon).  

These ranges illustrate potential outcomes for concentrated HBAR positions, but investors should weigh whether single-asset exposure matches their risk tolerance or whether diversified strategies better suit their objectives.

The Case for Diversified Index Exposure

Professional investors across asset classes prefer diversified exposure over concentrated bets for good reason. Hedera faces numerous risks - technical vulnerabilities, competitive pressure, regulatory targeting, team execution failure - any of which could derail HBAR performance independent of broader market conditions. Token Metrics Indices spread this risk across one hundred tokens, ensuring no single failure destroys your crypto portfolio.

Diversification becomes especially critical in crypto given the sector's nascency and rapid evolution. Technologies and narratives that dominate today may be obsolete within years as the space matures. By holding HBAR exclusively, you're betting not only on crypto succeeding but on Hedera specifically remaining relevant. Index approaches hedge against picking the wrong horse while maintaining full crypto exposure.

Tax efficiency and rebalancing challenges also favor indices over managing concentrated positions. Token Metrics Indices handle portfolio construction, rebalancing, and position sizing systematically, eliminating the emotional and logistical burden of doing this manually with multiple tokens.

Early access to Token Metrics Indices 

What Is Hedera?

Hedera is a high-performance public ledger that emphasizes speed, low fees, and energy efficiency, positioning itself for enterprise and decentralized applications. It uses a unique Hashgraph consensus that enables fast finality and high throughput, paired with a council-governed model that targets real-world use cases like payments, tokenization, and decentralized identity.

HBAR is the native token used for fees, staking, and network security, and it supports smart contracts and decentralized file storage. Adoption draws from partnerships and integrations, though decentralization levels and reliance on institutional demand are often discussed in the community.

Token Metrics AI Analysis

Token Metrics AI provides comprehensive context on Hedera's positioning and challenges.

  • Vision: Hedera's vision is to provide a secure, fair, and scalable distributed ledger technology platform that supports decentralized applications and enterprise use cases globally. It emphasizes governed decentralization, aiming to combine the benefits of distributed systems with responsible oversight through its council-based governance model.
  • Problem: Many blockchain networks face trade-offs between scalability, security, and decentralization, often resulting in high transaction fees, slow processing times, or environmental concerns. Hedera aims to address these limitations by offering a system that supports high throughput and fast finality without sacrificing security or incurring significant energy costs, making it suitable for both enterprise and decentralized applications.
  • Solution: Hedera uses the Hashgraph consensus algorithm, a directed acyclic graph (DAG)-based approach that achieves asynchronous Byzantine fault tolerance, enabling fast, secure, and fair transaction processing. The network supports smart contracts, tokenization, and decentralized file storage, with HBAR serving as the native token for fees, staking, and network security. Its council-governed model aims to ensure stability and trust, particularly for institutional and enterprise users.
  • Market Analysis: Hedera operates in the Layer 1 blockchain space, competing with high-throughput platforms like Solana, Avalanche, and Algorand, while differentiating through its Hashgraph consensus and governed governance model. It targets enterprise adoption, focusing on use cases in supply chain, payments, and asset tokenization, which sets it apart from more community-driven or DeFi-centric networks. Adoption is influenced by strategic partnerships, developer engagement, and real-world integrations rather than speculative activity. Key risks include competition from established and emerging blockchains, regulatory scrutiny around governance tokens, and challenges in achieving broad decentralization.

Fundamental and Technology Snapshot from Token Metrics

Fundamental Grade: 81.08% (Community 74%, Tokenomics 100%, Exchange 100%, VC 59%, DeFi Scanner 85%).  

Technology Grade: 62.39% (Activity 58%, Repository 68%, Collaboration 74%, Security 56%, DeFi Scanner 85%).  

Catalysts That Skew Bullish

  • Institutional and retail access expands with ETFs, listings, and integrations.
  • Macro tailwinds from lower real rates and improving liquidity.
  • Product or roadmap milestones such as upgrades, scaling, or partnerships.

Risks That Skew Bearish

  • Macro risk-off from tightening or liquidity shocks.
  • Regulatory actions or infrastructure outages.
  • Concentration or validator economics and competitive displacement.
  • Protocol-specific execution risk and competitive pressure from alternatives.

FAQs

Can HBAR reach $1.00?

Yes. Based on the scenarios, HBAR could reach $1.00 or above in the higher tiers. The 23T tier projects $1.07 in the moon case and the 31T tier projects $1.42 in the moon case. Achieving this requires broad market cap expansion and Hedera maintaining competitive position. Not financial advice.

What price could HBAR reach in the moon case?

Moon case projections range from $0.37 at 8T to $1.42 at 31T. These scenarios assume maximum liquidity expansion and strong Hedera adoption. Diversified strategies aim to capture upside across multiple tokens rather than betting exclusively on any single moon scenario. Not financial advice.

What's the risk/reward profile for HBAR?

Risk and reward span from $0.27 in the lowest bear case to $1.42 in the highest moon case. Downside risks include regulatory or infrastructure setbacks and competitive pressure, while upside drivers include improved liquidity and enterprise adoption. Concentrated positions amplify both tails, while diversified strategies smooth outcomes.  

Next Steps

Disclosure

Educational purposes only, not financial advice. Crypto is volatile, concentration amplifies risk, and diversification is a fundamental principle of prudent portfolio construction. Do your own research and manage risk appropriately.

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Crypto Basics

What are 3D NFTs and How Do They Work?

Token Metrics Team
6 minutes

3D NFTs, or Non-Fungible Tokens, are the latest trend in digital asset ownership. They are a form of digital asset that is unique, completely non-fungible, and immutable, allowing anyone to securely own and trade digital assets in a brand new way.

3D NFTs are created using 3D modeling tools such as Blender and 3D Studio Max, and stored on the blockchain, making them secure, transparent, and immutable. It’s now possible to own and trade digital assets in a new way. This article will take a closer look at what 3D NFTs are, how they work, and how you can use them to your advantage.

How Do 3D NFTs Work?

In order to own a 3D NFT, you will need a digital wallet that supports the creation and trade of 3D NFTs. These wallets will store your 3D NFTs, making them easy to trade with others and view your ownership rights in the blockchain. If you want to trade your 3D NFTs, you can easily do so by sending your 3D NFTs from your wallet to the wallet of the individual you want to trade with.

How are 3D NFTs Different from Other Digital Assets?

3D NFTs are different than other digital assets in that they are completely non-fungible. This means that each 3D NFT is completely one of a kind, making each one completely different from the next. Because each 3D NFT is one of a kind, each one will have its own value that can fluctuate depending on the demand for that 3D NFT.

Benefits of 3D NFTs

There are many benefits to using 3D NFTs over other digital assets. First and foremost, each 3D NFT is completely one of a kind, making them completely unique and interesting. This makes them much more exciting to collect, trade, and own. Since each 3D NFT is completely one of a kind and can be anything, they are much more interesting to own than other digital assets.

3D NFTs are also secure, transparent, and immutable, meaning that they can’t be hacked, all ownership rights can be seen by anyone, and they can’t be changed or manipulated in any way. Finally, they are also easy to create and trade, meaning anyone can start collecting and trading these digital assets.

How to Create 3D NFTs?

To create a 3D NFT, you need to follow these steps:

  1. Create or obtain a 3D model: You can create a 3D model from scratch using software like Blender or obtain one from an online marketplace.
  2. Convert the 3D model into a GLTF file format: This format is supported by most NFT marketplaces and makes it easier to display and view the 3D model in various environments.
  3. Mint the NFT: Minting is the process of creating a unique, one-of-a-kind token on the blockchain. You will need to use a blockchain platform like Ethereum and a tool like OpenSea to mint your 3D NFT.
  4. List the NFT for sale: Once you have minted your NFT, you can list it on various marketplaces such as SuperRare, Rarible, or OpenSea.

Where to Buy and Sell 3D NFTs?

There are various places where you can purchase and sell 3D NFTs, making them easy to trade with others. You can purchase 3D NFTs from online 3D asset marketplaces, such as Rarible, which allow you to purchase and sell unique 3D NFTs.

You can also use other known marketplaces, such as OpenSea or Magic Eden, to easily purchase and sell 3D NFTs.

How to Store 3D NFTs?

You will need to store your 3D NFTs in a digital wallet that supports 3D NFTs. Several different wallets support 3D NFTs; many even have mobile apps that make it easy to trade and collect your 3D NFTs.

How to Use 3D NFTs for Your Business?

If you want to use 3D NFTs in your business, they can be a great way to engage with your customers.

You can create your own 3D NFTs to give to customers, allowing them to trade and show off their digital assets.

You can also sell unique 3D NFTs, allowing customers to own rare, one-of-a-kind assets.

You can also use 3D NFTs as a loyalty reward, giving your customers a unique digital asset to show their loyalty to your brand.

The possibilities are endless. Reddit is a good example of this.

Types of 3D NFTs

There are various types of 3D NFTs you can collect and trade. You can collect unique video game characters, unique pieces of art, limited-edition sneakers, or even use 3D NFTs for marketing campaigns.

No matter what type of 3D NFT you collect, they will all be completely one of a kind, making them much more interesting to collect and trade than traditional digital assets. Also, 3D NFT projects are numerous and range from digital art to virtual real estate. 

Some of the most popular 3D NFT projects include:

  1. Decentraland: A virtual world where users can buy, sell, and build on virtual real estate using NFTs.
  2. Axie Infinity: A game where players can breed, battle, and trade creatures called Axies using NFTs.
  3. Bored Ape Yacht Club: A collectible game where players can own and trade unique, cartoon-style apes as NFTs.

Legal implications of 3D NFTs

There are very few legal implications to collecting and trading 3D NFTs. While you should always research to ensure you follow all applicable laws, most of these laws focus on trading and selling 3D NFTs rather than collecting and owning them.

The Bottom Line

In conclusion, 3D NFTs are a new and exciting development in the world of digital assets, providing a way to prove ownership and authenticity of 3D models and monetize digital art, games, and virtual assets. With the potential for limitless applications, 3D NFTs are poised to revolutionize the way we think about and trade digital assets.

Crypto Basics

Ethereum Vs. Ethereum Classic: What's the Difference?

Token Metrics Team
4 minutes

Ethereum and Ethereum Classic are two of the most popular cryptocurrencies in the world today. Both of these digital currencies have exploded in value over the past few years and have become some of the most sought-after investments in the crypto market. 

But what is the key difference between ETH and ETC? 

Ethereum (ETH) and Ethereum Classic (ETC) are both blockchain networks, but they have a few key differences that make them unique. Ethereum is a newer platform that is designed to be more scalable and secure than Ethereum Classic. Ethereum Classic, on the other hand, is an open source blockchain network that has a focus on decentralization, immutability, and censorship resistance. In this article, we'll compare the two networks and explain why Ethereum is the better choice for most investors.

Overview of Ethereum and Ethereum Classic

Ethereum (ETH) is a decentralized blockchain network that runs smart contracts and enables the development of decentralized applications (dApps). Ethereum was created by Vitalik Buterin and officially released in 2015. 

Ethereum Classic (ETC) is an extension (not a clone) of the original Ethereum, which was forked away by the Ethereum Foundation by launching a new protocol just an year later in 2016. 

To be precise, Ethereum Classic was created when the original Ethereum network and currency were split following the DAO hack in 2016. Ethereum and Ethereum Classic are both open source networks that are maintained by their respective development teams. Unlike Bitcoin, both Ethereum and Ethereum Classic use a Proof-of-Work consensus algorithm. Both these networks also use a native digital token to fuel their networks. 

As Ether is the native token of the Ethereum network, you can use it to pay for transaction or computational services on the Ethereum network. Similarly, ETC tokens are used by participants on the Ethereum Classic network.

But, the majority of the crypto crowd still needs a clean chit over the key differences that make them absolutely distinct. 

So, let’s get into it.

Differences between Ethereum and Ethereum Classic

Scalability - Ethereum (ETH) and Ethereum Classic (ETC) are both open-source blockchain networks that allow you to build decentralized applications. However, Ethereum has been designed to be more scalable. That means the network can handle more transactions at a higher speed, making it a better choice for everyday applications. 

Security - While both Ethereum and Ethereum Classic are secure blockchain networks, Ethereum is more scalable and has a better security track record. Ethereum Classic has been dealing with network security issues since its inception. 

Decentralization - Decentralization is one of the core values offered by blockchain networks like Ethereum and Ethereum Classic. Decentralization on the Ethereum network is slightly better than Ethereum Classic, but both networks have a long way to go before they can be considered decentralized. 

Immutability - Immutability is another core value offered by blockchain networks. However, the Ethereum and Ethereum Classic networks are still very far from achieving full immutability. Both networks have suffered from various instances of data manipulation. 

Censorship resistance - Censorship resistance is another core value offered by blockchain networks. However, both Ethereum and Ethereum Classic are far from achieving full censorship resistance. Both networks can be subjected to censorship by governments and other centralized entities. 

ETH vs ETC - Which is the Better Choice for Investors?

While both Ethereum and Ethereum Classic are great investments, we believe Ethereum is the better choice for most investors for a few reasons. First, Ethereum is more decentralized. Second, Ethereum has been around longer than Ethereum Classic. This means the network is more scalable, secure, and well-established than its competitor. Finally, Ethereum has a wider range of applications than Ethereum Classic.

Overall, Ethereum is the better blockchain network when compared to Ethereum Classic.

The Bottom Line

Ethereum and Ethereum Classic, both of these networks have exploded in value over the past few years and have become some of the most sought-after investments in the crypto market.

When the DAO got hacked and lost $50 million, Ethereum needed a solid technology to replace the old one. So, a hard fork was done. But many traditional supporters of Ethereum did not want to go with the hard fork, and they stayed with the old blockchain technology. As a result, Ethereum Classic was born.

Disclaimer: The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Announcements

Token Metrics TradingView Indicator - Trade Cryptocurrencies with Confidence

Token Metrics Team
7 minutes

Trading indicators are a crucial aspect of the investing world, and in the volatile world of cryptocurrency, it becomes all the more important to have them on your side. 

TradingView, the leading social trading platform, provides traders with the tools they need to make informed decisions and take their trading game to the next level.

Among the tools offered by TradingView is the Token Metrics Indicator, a powerful tool that combines multiple technical analysis indicators to provide Long/Short signals for crypto assets.

In this blog, we will dive into the Token Metrics TradingView Indicator and how it can help you to improve your trading strategy. 

Whether you are a seasoned trader or just starting out, the Token Metrics TradingView Indicator can help you make informed investment decisions and potentially avoid costly mistakes.

That said, let’s get started.

What is Token Metrics TradingView Indicator? 

The Token Metrics TradingView Indicator is a powerful tool for crypto assets on TradingView, combining multiple strategies to give you clear Long and Short signals for your trades. 

It gives you a clear picture of the market with four key components: Clouds, Trend Line, Signals, and Channels. The Clouds show the current trend (green for bullish and red for bearish), the Trend Line provides a long-term market outlook with resistance and support levels, the Signals provide buy/sell signals and the Channels help to determine the previous swing high and low to get an idea of where resistance/support might be forming and where breakouts can occur.

The backtesting feature allows users to assess the strategy's historical performance and understand its potential, risk profile, and suitability for different market conditions. 

The Token Metrics TradingView Indicator offers customization options to match individual trading preferences through its inputs.

Users can adjust these values based on risk tolerance and market conditions, allowing optimal performance and profitability. Whether you prefer a fast-reacting or slow-adapting strategy, the Token Metrics TradingView Indicator has you covered.

Supports All Types of Traders

The Token Metrics Trading View Indicator offers traders two distinct approaches to cryptocurrency trading: long-term and high-frequency trading. Each style has its considerations and best practices to maximize profitability.

For long-term traders, the Token Metrics TradingView Indicator provides a trend-following strategy best suited for Daily and Weekly timeframes. This approach excels in trending markets but may produce false signals in choppy or range-bound markets. It is important for long-term traders to keep in mind that the goal is to gain exposure to strong trends without excessive trading.

On the other hand, high-frequency traders can take advantage of the mean-reverting capabilities of the Token Metrics TradingView Indicator. This approach is best suited for 15min, 30min, and 1hr timeframes and works best in choppy and range-bound markets. Mean-reversion is stronger on low time frame charts, making this strategy ideal for traders looking to buy at the bottom of the channel and sell at the top. It is important for high-frequency traders to remember that this strategy is not intended for exposure to prevailing trends.

Whether you prefer long-term or high-frequency trading, the Token Metrics TradingView Indicator provides the tools and customization options to match your individual style. By understanding the strengths and limitations of each approach, you can make the most out of your trading strategy with the Token Metrics TradingView Indicator.

How to Get the Token Metrics TradingView Indicator

The Token Metrics TradingView Indicator is included in all Token Metrics Plans

You can also get this indicator as a standalone product by visiting this page to learn more.

Conclusion

In conclusion, the Token Metrics TradingView Indicator is a versatile tool that can be customized to fit the needs of both long-term and high-frequency traders.

Whether you're looking to gain exposure to strong trends or to take advantage of mean-reversion in choppy markets, the Token Metrics TradingView Indicator provides the features and flexibility you need to achieve your trading goals.

With its comprehensive backtesting capabilities, you can get a deep understanding of the performance of your strategy, allowing you to make informed decisions and achieve consistent profits in the cryptocurrency market.

Crypto Basics

What is Crypto Yield Farming and How it Works?

Token Metrics Team
6 minutes

In this guide, we will answer what crypto yield farming is and how to do it.

Yield farming is a revolutionary way of earning passive income through cryptocurrency investments. It is a relatively new concept and has gained much attention in the crypto world. Yield farming involves using your cryptocurrency assets and taking advantage of lending platforms, decentralized finance protocols, and staking pools to generate incentives for interest payments, rewards, and capital gains. 

In this descriptive guide to crypto yield farming, you'll learn about the different types of yield farming, the rewards available, and the associated risks. You can earn passive income through yield farming with the right strategies and knowledge. So, let's dive right in and learn about crypto yield farming.

What is Crypto Yield Farming?

Yield farming is a process of using your cryptocurrency assets to generate incentives in the form of:

  • Interest payments, 
  • Rewards, and 
  • Capital gains. 

In other words, it is a form of passive income from cryptocurrency assets. Yield farming can also be considered a strategic investment strategy that allows you to earn income from your idle assets by lending them to other users. This process is similar to how people earn income from their savings accounts. 

These idle assets that you can stake can be your:

  • Computer's processing power
  • A certain amount of coins from your portfolio, or 
  • A certain amount of tokens from your portfolio. 

But how is this beneficial to you? 

Benefits of Yield Farming

Yield farming offers a wide range of benefits for both individuals and businesses. 

  • For individuals, yield farming can be a great way to earn extra income. It can help you diversify your crypto portfolio and hedge against some of the risks associated with investing in cryptocurrencies by generating extra income from your idle assets. This is why they call it an excellent way to earn passive income, which is one of the core benefits of cryptocurrency. 
  • For businesses, yield farming can help you expand your customer base and increase revenue. You can earn income by lending your idle assets while helping people earn interest and build their crypto portfolios. Although yield farming was once primarily used by mining operations, it can now be done by individuals, organizations, and other entities that are involved with cryptocurrency.

How Does Yield Farming Work in Real-time?

So, what do you need to do to get started with yield farming?

To begin with, the yield farmers will need to deposit their coins or tokens into decentralized applications or dApps of their choice for the following: 

  • Crypto trading 
  • Lending, or 
  • Borrowing. 

A few examples of dApps include crypto wallets, DEXs, decentralized social media, and more. Since these investors enhance the liquidity in their chosen dApp, they're referred to as liquidity providers. The crypto that yields farmers' deposits into DeFi protocols gets locked into autonomous smart contracts.

Types of Yield Farming

There are three types of yield farming - lending, providing liquidity, and staking. 

Lending refers to lending your idle cryptocurrency assets to earn interest payments. You are generating revenue through interest payments when you lend your cryptocurrency assets. This process is similar to how people earn interest from their savings accounts. 

Providing liquidity to decentralized apps for traders to trade on can also generate you fees. However, keep in mind that there exists impermanent loss in the process.

Staking refers to lending your coins to earn rewards through coins and staking fees. You are generating revenue through rewards and staking fees when you stake your coins. Rewards can come in the form of coins, tokens, or other types of digital assets. You are lending your coins to earn rewards.

Types of Rewards Available

Rewards are the incentives earned when you lend idle coins and cryptocurrencies to earn interest payments and generate passive income. There are many different rewards available to those who participate in yield farming. Some include interest payments, votes, staking rewards, and airdrops. 

Interest payments: This is the primary reward generated by yield farming. Interest payments are generated when you lend idle coins and cryptocurrencies to other participants. 

Votes: This refers to the ability to vote on certain network issues. 

Staking rewards are rewards generated by staking crypto assets for a certain period. 

Airdrops: This refers to the free crypto coins and tokens resulting from participating in a certain network or blockchain project.

Is Yield Farming Safe and Profitable?

Now that you know the benefits of yield farming, it's also important to know the risks. This is because no investment is risk-free, and the same is true for yield farming. When you decide to earn income from yield farming, you must consider the risks associated with it. Some risks associated with yield farming include network, liquidity, counterparty, and regulatory risks. 

Network risk refers to the risk associated with the security of the network/blockchain and its ability to function as expected. 

Liquidity risk is associated with the ability to liquidate your assets when you need them. 

Counterparty risk refers to the risk associated with the ability of the person/entity with whom you have the contract to fulfill the obligations. 

Regulatory risk is the risk associated with the ability of the government to enact new laws that can affect your earnings.

Smart contract risk is the risk associated with the probability of smart contracts getting hacked due to a bug or backdoor.

That said, there are definitely risks involved that you need to be aware of.

Strategies for Yield Farming

There are many strategies you can use for yield farming. Some of them include lending your idle assets to earn interest payments, staking your coins to earn rewards, and using different DAFs to generate passive income.

Lending your idle assets: This is one of the most common ways to earn income through yield farming. You can use your idle assets, such as your computer's processing power, to lend them to others who need them. 

Staking your coins: This is another popular way to generate passive income through yield farming. You can lend your coins to earn rewards. 

Using different DAFs: This refers to the use of decentralized autonomous funds that can generate passive income.

What's Next for Yield Farming?

Yield farming is a dynamic space that tends to change quickly; it often requires vigilance and time for farmers to cull out the best possible strategies. However, for someone who can manage it, yield farming will be highly profitable in 2023, even in the bearish market.  

That said, yield farming is significantly risky with rug pulls, hacks, impermanent loss, etc.

So, choosing your battle is important before getting into the ring. 

Platforms for Yield Farming

Many different types of yield farming platforms are available for you to use.

You can use these platforms to take advantage of your idle assets to generate income through interest payments and rewards.

Some popular yield farming platforms include Yearn Finance, Lido, and Liquity.

The Bottom Line

Yield farming is a revolutionary way of earning passive income through cryptocurrency investments. It involves using your cryptocurrency assets to take advantage of lending platforms, decentralized finance protocols, and staking pools to generate incentives in interest payments, rewards, and capital gains. While lucrative, it can be a riskier investment depending on the platform you go for and the type of yield you are generating.

Crypto Basics

What is XRP (Ripple) Crypto - A Comprehensive Guide

Token Metrics Team
7 minutes

BUY XRP FROM MEXC!

Cryptocurrencies have quickly become an important part of the global financial system, allowing users to make secure, low-cost transactions without needing a bank or other financial institution. One of the most popular and well-known cryptocurrencies is XRP (Ripple), a digital asset designed specifically for payments, remittances, and other forms of financial transactions. 

In this beginner’s guide to XRP, we'll look at how this cryptocurrency works, its benefits, and how it differs from other digital assets. We'll also discuss the process for buying and selling XRP and some potential issues that users need to be aware of. Whether you're new to cryptocurrency or just looking to learn more about XRP, this guide should provide a comprehensive overview of this digital asset and its potential uses.

What Is XRP (Ripple)?

XRP/Ripple is a blockchain network and digital token created to facilitate low-cost, secure, and fast international payments. Unlike other cryptocurrencies, XRP was designed from the beginning to be used for these financial transactions instead of a more general purpose like Bitcoin, Ethereum, and Litecoin. 

XRP can transfer money across borders quickly and with extremely low fees, making it ideal for banks, payment providers, and other financial institutions. XRP can complete these transfers quickly due to its use of a consensus protocol that allows it to confirm transactions within just 4 seconds. 

The XRP token is used to pay network fees for these transfers and is also used by financial service providers as a source of liquidity for cross-border payments. However, the XRP token is not required to use the Ripple network.

Benefits of Using XRP

There are many benefits to using XRP, including:

  • Low fees
  • Fast transaction times
  • High scalability
  • A large network of liquidity providers. 

These benefits make it an ideal choice for banks and other financial institutions that need to process international payments quickly and cheaply. Individuals can also use XRP to make international transfers, but they'll need to purchase the asset before doing so. XRP has advantages over other cryptocurrencies, including Bitcoin, as it was designed specifically for financial transactions. 

"Ripple can process almost 1500 transactions per second, compared to Ethereum's 21 and Bitcoin's 7."

How does an XRP Transaction Work?

To send money from one person to another, the sender must create a transaction sent to the network and verify. This process also involves creating an "offer" where the sender specifies the amount of XRP and the network fee. Once completed, the sender's wallet submits the transaction to the network and the fee. 

The network then forwards the transaction to one of the XRP "liquidity providers," who will purchase the amount of XRP specified by the sender and release it to the receiver of the transaction. These liquidity providers hold large amounts of XRP and sell it to other users. After the transaction has been verified by the network and the fee paid, the receiver will receive the money in his or her account.

How to Buy and Sell XRP?

Anyone with access to internet can purchase XRP and store it in a digital wallet. However, some exchanges require users to undergo a verification process before they can begin trading. In addition, most exchanges charge a small trading fee for each transaction, which can add up if you buy and sell frequently. 

Once you've obtained XRP, you can store it in a digital wallet, allowing you to access it from anywhere and providing you with control over the private keys.

Various wallets are available for storing digital assets, including hardware and paper wallets.

Potential Issues with XRP

Like all cryptocurrencies, XRP has potential network risk and governance issues. The community has debated these issues since XRP was first created, but they still need to be resolved.

XRP has a large network of validators that are responsible for verifying transactions. However, the network is centralized, which means it is vulnerable to a single point of failure. If the validators decide to act maliciously, they may be able to prevent other transactions from being verified or even reverse transactions that have already been approved.

XRP vs. Other Cryptocurrencies

XRP is different from most other cryptocurrencies because it was created specifically for financial transactions. This means that Ripple can process almost 1500 transactions per second, compared to Ethereum's 21 and Bitcoin's 7. XRP differs from other digital assets because it is not mined like other cryptocurrencies.

XRP Price History Over The Years

Ripple's token, XRP, became available in 2013 when the company conducted its first fundraising round. Following this initial coin offering (ICO), the price of XRP remained relatively low for several years, with the coin's price dropping below $0.01 in 2016.

However, XRP saw a significant spike in value in 2017, increasing by more than 36,000%. Since then, the price has fluctuated, but it has remained relatively high, and at the time of writing, the price of XRP stands at just under $0.50.

XRP Mining

Unlike other cryptocurrencies, Ripple was not designed to be mined like Bitcoin and Ethereum. Ripple's creators created 100 billion XRP tokens at the start of the project and distributed them to investors.

However, new XRP tokens are added to the network every few months through a process known as "escrow," where the network creates enough tokens to provide liquidity to the global financial system.

XRP Wallets

Some of the best XRP wallets you can use to store your coins in include:

  • Ledger
  • Trezor
  • Coinbase
  • Binance
  • Kraken

Top Exchanges To Buy XRP

Now that you know what XRP is, you can simply create your account in any of the exchange platforms below, complete your KYC and instantly buy your XRP tokens.

  • Binance
  • Kraken
  • Huobi
  • Bitfinex
  • eToro

Is XRP a Good Investment?

Owing to the technical analysis of the XRP, it is expected to reach a minimum price of $0.54 and a maximum of $0.64. Hence, the average trading price at $0.56. Experts believe that this crypto asset has great potential in terms of growing in value.

Having said that, it is always suggested for you to do your own research before arriving at a decision.

The Future of XRP

Ripple aims to create a global network of financial institutions and payment providers that use XRP for cross-border payments. If this vision is achieved, Ripple's cryptocurrency could become one of the world's most widely used digital assets, with billons of dollars flowing through the network daily.

There are some challenges that Ripple will have to overcome to achieve this goal. For example, Ripple needs to expand its network to include more financial institutions while convincing them to use XRP instead of their existing payment networks. 

The Bottom Line

Ripple has streamlined the process of global payment network while providing a useful service for existing financial institutions. Although there is also uncertainty about whether the XRP token should remain centralized or if it should be decentralized, it is one of the coins to keep an eye on. 

Disclaimer

The information provided on this website does not constitute investment/trading/financial advice and you should not treat any of the website’s content as such. Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you.

Do conduct your own due diligence and consult your financial advisor before making any investment decisions. We only offer comprehensive information which may change over time.

Crypto Basics

What is Polkadot (DOT) Crypto and Is It a Good Investment?

Token Metrics Team
8 minutes

Polkadot is an innovative, interoperable blockchain network that has the potential to revolutionize the crypto industry. It is the brainchild of Dr. Gavin Wood, one of the co-founders of Ethereum.

Polkadot provides a platform for different blockchains to interact with each other, enabling the exchange of data and assets between them.

With its scalability, robust security features, and cross-chain compatibility, Polkadot is quickly becoming one of the most popular networks for developers and users. This comprehensive guide will provide an overview of the Polkadot network and its features and a look at some of the projects built on the platform. From its scalability to its security and interoperability, this guide will cover the basics of Polkadot and why it is revolutionizing the blockchain industry.

History of the Polkadot Network

The Polkadot network is a scalable, interoperable blockchain network designed to connect numerous blockchain networks and facilitate data and asset transfer between them. It was proposed by Gavin Wood, one of the co-founders of Ethereum, and was funded by a successful ICO in 2017. 

The network is powered by a native token known as DOT, which governs the network and exchanges data between chains.

Polkadot is unique in that it is designed to be "hack-proof", due to its implementation of a "democratic" consensus mechanism. While a small number of miners control other blockchain networks, Polkadot's consensus is controlled by a large pool of validators who are democratically elected by users of the network. This ensures that no one party can completely control the network, making it resistant to cyber-attacks.

Polkadot's Scalability

One of the biggest issues affecting the blockchain industry is scalability. Networks like Ethereum can only process 15 transactions per second, which is far from sufficient for mass adoption. If a blockchain network hopes to be used by large corporations and governments, a low transaction capacity is a huge barrier to entry.

Polkadot uses a unique relay chain system to solve the scalability problem. The relay chain system acts as a bridge between different blockchains, allowing them to connect to each other. The chains are controlled by validators who process transactions for chains they are not a part of. 

This allows for transactions on the Polkadot network to be processed by a network of blockchains instead of one single blockchain. This allows for a significant increase in transaction capacity, with one estimate showing 200,000 transactions per second.

The Security Benefits Of Polkadot

Polkadot is committed to providing secure, stable blockchain networks that are not susceptible to cyber attacks. To achieve this, Polkadot uses a unique governance model that allows a large pool of validators to secure the network against attacks.

Any party can become a validator on the network by staking DOT tokens. Validators are then rewarded for their work by being paid a portion of DOT token fees generated by the network. 

Validators have a lot of power on the Polkadot network and are responsible for:

  • Confirming transactions
  • Producing blocks
  • Processing cross-chain communication, and 
  • Governing the network. 

If a validator behaves maliciously on the network, the network can punish them by reducing their reward or completely removing them from the network.

Polkadot's Interoperability

One of the biggest problems facing blockchain networks is interoperability. Blockchains cannot communicate with each other, which is a significant barrier to the implementation of blockchain technology on a large scale. Polkadot uses a unique system known as the relay chain to enable cross-chain communication between different networks. 

For example, let's say that a business wants to move funds from a corporate blockchain network to a public blockchain network for the purpose of trading digital assets. Currently, there is no way for these blockchains to communicate with each other, which makes the process extremely difficult and expensive.

With Polkadot's relay chain, the funds are sent from one blockchain to the relay chain; then they are sent to the other blockchain. The relay chain allows blockchain networks to communicate with each other and exchange data, removing the interoperability barrier.

Projects Built on Polkadot

Polkadot has a handful of projects being built on its network. Acala is one such project.

Acala is the ultimate DeFi solution, providing a secure and scalable blockchain platform built on Polkadot, along with a variety of cross-chain financial tools. Users can trade, borrow, provide liquidity, access staking derivatives, and earn high-interest returns on their digital assets. Compatible with Ethereum and optimized for DeFi, Acala's all-in-one network offers endless possibilities for decentralized finance.

How to Buy Polkadot Crypto?

To buy Polkadot’s token, follow these 3-simple steps:

1. Select a Cryptocurrency Exchange

If you’re new to investing in cryptocurrency, you’ll have to open an account with a cryptocurrency exchange. If you’re deciding between exchanges, pay attention to the platform’s security features, account minimums and added fees. Eg: Binance, Coinbase, Kraken

2. Submit Your Polkadot Order

Once you get an exchange account, you can fund it by either linking your bank account or entering your debit card information. Some exchanges allow you to use a credit card, but think twice before using credit as it might charge excess fees. When you’re ready to purchase Polkadot, use the ticker symbol—DOT—and enter the amount you want to invest, such as $50 or $100.

3. Store Your Polkadot

Whenever you buy cryptocurrencies, you have to handle storage on your own. Properly storing your investment is essential to ensure you keep your tokens safe. There are several storage options:

Hard Wallet: A hard wallet resembles a flash drive or USB drive. It’s a small, physical device that plugs into your computer or laptop and stores your private and personal crypto keys. They are considered “cold” because they aren’t connected to the internet or a network when not actively in use.

Paper Wallet: This form of storage is less popular than it used to be but can be a viable storage option. With a paper wallet, you write down keys or apps to download a QR code. If you lose it, you can recover your cryptocurrencies.

Software Wallet: Software wallets are apps or programs you can download to manage your cryptocurrencies electronically. Because they’re connected to the internet and networks, they’re less secure, but they make it easy to trade your holdings.

Crypto Exchanges: Some cryptocurrency exchanges, such as Coinbase, has built-in storage and store cryptocurrencies on your behalf. But relying on an exchange for storage can be risky, and you may want to consider other solutions for long-term storage.

Is Polkadot A Good Investment?

Although Polkadot might experience a bearish 2023, this indeed can be the right time to invest. Because, In 2021, Polkadot concreted its worth to potential traders and investors with apparent proof.

How?

Polkadot has actually kept its promise as the DOT token went on to hit an all-time high along with ranking well among the crypto peers in 2021. Despite a market crash or a price drop, Polkadot is still estimated to be in the profit zone. 

To cut it short, crypto prediction experts suggest that 2023 is the ideal time to buy DOT tokens, yet, it’s suggestible to do your own research and analysis before you make the call.

Future Of Polkadot Crypto

Polkadot is a fairly young asset of the crypto world,  but it saw a great surge in its popularity among cryptocurrencies in 2021 and 2022. Experts project that Polkadot's position would rise over time and confront other high-ranking cryptos like Ethereum.

Polkadot’s big aspect is its interoperability with various independent blockchains. Interoperability is a broad term used in the crypto space to describe the process of interacting between two or more different blockchains.

Although many networks share similar concepts, Polkadot is the only platform that makes this vision a reality, as it is the first solution that can achieve significantly high interoperability.

The Bottom Line

The Polkadot network aims to be the internet of blockchains by allowing different blockchain networks to connect with each other and exchange data. With its scalable network, robust security features, and cross-chain compatibility, Polkadot is quickly becoming one of the most popular networks for developers and users.

With the implementation of the relay chain, Polkadot is positioning itself as the first truly interoperable blockchain network and a game-changer in the blockchain industry.

Crypto Basics

Cardano (ADA) Crypto – What It Is and How It Works?

Token Metrics Team
8 minutes

Cardano (ADA) can be described as a blockchain platform that’s designed to enable the development of decentralized applications and smart contracts. It is the first blockchain platform to be built on a scientific philosophy and to be developed through peer-reviewed research and scientific rigor. Developed by a global team of leading researchers and engineers, Cardano is set to revolutionize the way we use and interact with blockchain technology. 

This beginner's guide to Cardano will provide you with all the information you need to understand the platform, its features, and how to use it. From its unique consensus algorithm to its native token ADA, this guide will provide you with a comprehensive overview of Cardano. Whether you're a beginner interested in learning more about Cardano or a blockchain expert looking for the latest information, this guide has you covered from end-to-end. 

History of Cardano

Cardano was founded by Charles Hoskinson, who also co-founded Ethereum. However, Cardano is a very different platform from Ethereum regarding its design and goals. Whereas Ethereum is a decentralized application ("dapp") platform designed to power all sorts of different decentralized applications, Cardano is designed to be a "first generation" blockchain platform that can be used to build decentralized applications, as well as other things.

The Cardano Foundation, IOHK, and Emurgo are developing the Cardano platform. The three groups are working together to build the Cardano platform and will hold a stake in the Cardano ecosystem. 

The first phase of Cardano's development began in 2015. At the time, a company called Input-Output (IOHK) was contracted to build the platform. In 2017, IOHK decided to hand over control of the project to the Cardano Foundation and Emurgo. The three partners are now working together to bring Cardano to market. The next development phase has been completed sometime between 2020 and 2021. After that, Cardano emerged as a fully decentralized blockchain.

How Does Cardano Work?

The Cardano platform uses a proof of stake (PoS) consensus algorithm to manage its decentralized network. Proof of stake is a consensus algorithm where the right to add new blocks to the blockchain is determined not by computing power but by coin ownership. In PoS-based blockchains, users must "stake" or "deposit" their coins to add new blocks to the blockchain for a certain amount of time. The more coins a user stakes, the greater the chance that the user will be selected to add a new block. Cardano uses the Ouroboros proof of stake algorithm. 

Ouroboros is the first proof of stake algorithm to be proven secure in a peer-reviewed paper. This unique algorithm uses a "random selection of a catch-up fellow" to create a network with no central authority. In other words, no single person or group can control the network. The algorithm works by randomly selecting a "follower" who can "catch up" with the "leader."

The leader is the person responsible for adding new blocks to the blockchain. The follower has one job: to predict what the leader will do. If the follower is correct, they are promoted to the leader and given a chance to add a new block. If the follower is incorrect, they remain a follower, and another random person is selected to catch up. The Ouroboros algorithm was expected to be completed by June 2020. But, according to recent reports, Charles Hoskinson said that the Ouroboros Genesis implementation will be in 2023.

Cardano's Development and Governance

The development and governance of Cardano are handled by three large organizations:

The Cardano Foundation: The Cardano Foundation maintains Cardano's core. This group promotes the platform, manages its marketing and communications, and defends the brand.

IOHK: IOHK leads the team behind Cardano's core. This group is responsible for developing and maintaining the platform's core software and bringing new features to the market.

Emurgo: The third group, Emurgo, brings businesses and investments to the Cardano ecosystem. Emurgo helps businesses integrate with the Cardano network and encourages others to build projects on the Cardano platform.

The functioning of Cardano stands tall because of the highly secured and powerful ecosystem as mentioned above. Now, what is Cardano’s native token ADA?

Cardano's Native Token - ADA

Cardano's native token, ADA, sends money on the Cardano blockchain. It also rewards people who help maintain and build the network. The team behind Cardano has stated that ADA is more than just a token: it also serves as "the fuel that drives the Cardano ecosystem." Cardano’s development team has stated that the platform will be fully decentralized once the network has been around for a few years. Until then, the platform will be maintained by a group of stakeholders who have a vested interest in the platform's success. These stakeholders have a stake in the system and are rewarded with ADA for helping maintain the platform. 

There are 3-easy ways to earn ADA

  • Hosting a node, 
  • Providing software assurance, or 
  • Contributing to the development of Cardano's software or research.

Apart from these, Cardano’s powerful 3-layered ecosystem makes it reliable and trustworthy. 

The 3-Layered Cardano's Ecosystem

Here are the three secured-layers that constitute Cardano (ADA): 

The Cardano Network: The Cardano network is the blockchain that runs the ADA token and smart contracts. It is maintained by the stakeholders, who receive ADA for their work.

Cardano's core technology: The Cardano core represents the core software that powers the Cardano network. This includes the programming languages used to build decentralized applications and the virtual machine that runs those apps.

All the projects built on top of the Cardano platform: The Cardano projects layer lists all the decentralized applications built on top of the Cardano network.
To top it all, you can also enjoy the benefit of smart contracts on Cardano. 

Smart Contracts On Cardano

Although Cardano is designed to be a dapp platform, it can also be used to build smart contracts. The programming language used to build smart contracts on Cardano is called Haskell and Cardano's virtual machine, called the "Computing Resources And Dispatcher" (CRDD), can execute many programming languages.

Any decentralized application built in any programming language can be hosted on the Cardano network. Cardano's smart contracts are unique because they are the first to be verified by a formal verification tool called the "Industrial Strength Verification" (ISV). This tool will help you confirm whether or not a smart contract is safe to use.

Cardano's Use Cases

Use Case #1: The first use case for Cardano is a decentralized application platform. This means that developers can build apps on top of the Cardano blockchain. These dapps will be able to send and receive ADA and use other features like the ability to create a wallet or sign a transaction. 

Use Case #2: The second use case for Cardano is as a financial asset. Investors can buy and sell ADA on cryptocurrency exchanges, and the token could also represent ownership in a company.

Now, let’s see the security measures that Cardano aims to offer.

Security on Cardano

One of the most common questions about Cardano is how secure it is compared to other blockchains. Cardano does not claim to be more secure than other blockchains but seeks to be as secure as possible. The team behind Cardano has said that one of their goals is to be the "safest and most reliable blockchain." 

One way Cardano strives to be more secure is through its unique design. While other blockchains are designed to do one thing well, Cardano is designed to do many different things less well. Cardano's design means no single platform part is crucial to its operation. If one part of the platform fails, many other parts can take its place. This indicates safety at its best.

Is Cardano a Worthy Investment?

There we are swinging again to whether or not Cardano is a good investment. Let’s check out the latest updates before we decide, shall we?

According to the Cryptoglobe’s Report, ADA’s price might soar up to 100% by 31st January, 2023. Major upgrades are being anticipated by investors to improve DeFi’s significance through its oracles.

So, Cardano is something to look forward to owing to its upcoming features. 

Future of Cardano

Let’s dive a bit further into the future. Cryptopolitan thinks the price of ADA will soar up to $21.35 on an average, with a minimum price of $20.55. Changelly also believes that ADA price will rise, but the website thinks the coin price will only peak at $15.69, with an average of $13.92, similar to the data from Price Prediction. The website’s analysts predict that the coin’s maximum price will be $15.69 with a minimum of $13.55.

Most experts predict that Cardano might see a bright future in 2023. With persistent developments Cardano’s ecosystem has been witnessing, and in the crypto asset market as a whole, Cardano can potentially reach a new high.

The Bottom Line

Cardano aims to be a "first generation" blockchain technology. The platform is being built by a group of organizations, each with a specific role in the project.

The team hopes this design will help Cardano achieve its goal of being the most secure blockchain. The platform uses a unique consensus algorithm, and its native token is storable in various wallets. The token can be used to represent ownership in a company. 

Crypto Basics

Dogecoin (DOGE) Crypto - What It Is and How It Works?

Token Metrics Team
7 minutes

Dogecoin (DOGE) has been making headlines lately as cryptocurrency continues to gain mainstream attention. But what exactly is Dogecoin, and should you consider investing in it? This article aims to explain Dogecoin's basics, how it works, and what you should consider before investing. 

Dogecoin is a cryptocurrency created in 2013 as a joke but has since become a serious player in the cryptocurrency market. At its core, Dogecoin is a decentralized, open-source, peer-to-peer digital currency that allows users to send and receive money with low transaction fees. It is based on the Litecoin protocol, a modified version of Bitcoin. 

Dogecoin has recently gained popularity due to its rapidly-growing user base, low transaction fees, and fast transaction speeds. Despite its novelty, Dogecoin is a legitimate cryptocurrency with many advantages over other currencies, including its security, low costs, and ease of use. Whether or not you choose to invest in Dogecoin is ultimately up to you. But by understanding the basics of the currency and doing your research, you can make an informed decision about whether or not Dogecoin is right for you.

A Quick Overview Of Dogecoin

Dogecoin is a decentralized, open-source, peer-to-peer digital currency that uses Litecoin's Scrypt algorithm as proof of work. Users can send and receive DOGE, while miners can also produce new Dogecoin as a reward for verifying transactions. As of December 2022, there are over 132 billion DOGE tokens in circulation, with a total supply expected to be in the trillions. 

Dogecoin's supply has no limit, meaning it can be mined infinitely. The maximum number of coins that can be mined per day is 100,000,000, while the maximum number of coins that can be mined per hour is 6,000,000. Dogecoin is traded on an average of 50 exchanges, with the highest daily volume being over $560 million. Bitcoin's market capitalization is $320 billion, while Dogecoin stands at $11.96 billion.

How Does Dogecoin Work?

As mentioned above, Dogecoin is a decentralized, open-source, peer-to-peer digital currency that uses Litecoin's Scrypt algorithm as proof of work. The Scrypt algorithm is based on the SHA-256 algorithm, which is used by cryptocurrencies like Bitcoin. The SHA-256 algorithm is parallelized, meaning it can be divided into independent sections and computed simultaneously.

The Scrypt algorithm, on the other hand, is designed to be less predictable. This makes it more difficult for people to calculate a mining reward and for ASICs to be used for mining. This makes mining Dogecoins more decentralized, with users across the globe contributing to the mining process.

Advantages of Dogecoin

The top three advantages of Dogecoin are stated below for your best understanding:

  1. Security: Dogecoin's proof-of-work algorithm is much less susceptible to hacking than centralized, third-party payment providers. 
  1. Low costs: Dogecoin's low transaction fees and high supply make it a cheaper alternative to services like PayPal. 
  1. Fast transaction speeds: Dogecoin's block time of one-and-a-half minutes makes it one of the fastest cryptocurrencies regarding transaction speed.

Disadvantages of Dogecoin

On the other hand, there are a couple of disadvantages that might need your attention, especially if you are looking for an active investment in Dogecoin:

  • No proper accountability: While no entity owns or controls Dogecoin, there is no accountability if the cryptocurrency is hacked. This means that no one can reimburse you if your Dogecoins are stolen. 
  • Fraud risk: Because Dogecoin is not monitored by a central authority, there is a risk of fraud. This means you need to be extra cautious when investing in Dogecoin and always double-check the legitimacy of any exchange or company you plan to do business with.

Dogecoin's Market Performance

Dogecoin's market performance since its inception has been impressive. In 2022 alone, Dogecoin experienced a 350% increase in value, making it one of the top-performing cryptocurrencies in the last year. While it is difficult to determine what exactly caused this surge in value, there are a few things we can point to.

Dogecoin recently announced that it would partner with a company called Dogewallet to release a new cryptocurrency wallet. This news likely drove Dogecoin's value up, allowing the currency to become even more accessible to its growing user base. Dogecoin has also made headlines due to its sponsorship of a NASCAR race car and a social media tipping campaign.

Now that you know the performance of Dogecoin over the years, let’s look at the simple process of buying and owning it.

How to buy Dogecoin?

Buying Dogecoin is not difficult. Just follow four basic steps:

  1. Account Creation: Create an account on a cryptocurrency exchange that lists Dogecoin.
  2. Finish your KYC: Complete the identity verification process. Exchanges typically require a scan of an identity document such as a driver's license or passport.
  3. Do the Money Transfer: Transfer money from your bank account to the cryptocurrency exchange. The exchange may accept other payment methods, but bank account transfers generally have the lowest fees.
  4. Just Click on “Buy”: Once the money is available in your account with the exchange, select the "buy" option to purchase Dogecoin.

Right there, you have it all ready to trade or store Dogecoin. 

The Controversy Around Dogecoin

If you are aware of Dogecoin, then you might know the controversy surrounding it. When Elon Musk first tweeted about it - supporting it - its prices soared to the sky but came down crashing. There is also a $258 million lawsuit against him for this that states:

According to an amended complaint filed in the Manhattan court, Elon, his companies, Tesla and SpaceX, Boring and others intentionally drove up the price of the Dogecoin to more than 36,000% over two years and then let it crash. As a result, the defendants made tens of billions of dollars which came at the expense of other Dogecoin’s investors, while knowing that it has less intrinsic value and will rise up or go down only by marketing. 

This might make you worry about the future of Dogecoin and make you think if you should invest in DOGE or not.

Should You Invest in Dogecoin?

Dogecoin is a cryptocurrency that has experienced impressive growth since its inception. It has several advantages over other cryptocurrencies, including its security, low costs, and ease of use. These advantages make Dogecoin a viable investment option for those who want to try their hand at cryptocurrency but do not want to start with Bitcoin. That said, cryptocurrency trading is risky, and investing in Dogecoin can come with risks. 

There is no guarantee that Dogecoin's value will continue to rise, meaning that there is a risk that you could lose money. Additionally, investing in Dogecoin means you must be comfortable keeping your money in a digital wallet. If you are interested in investing in Dogecoin, be sure to do your research, make an informed decision, and invest only what you can afford to lose.

The Bottom Line

Dogecoin has seen exponential growth followed by a drastic fall due to the fact that its value depends on the market sentiment. One tweet from Musk can spike its price overnight, and, in the long-run it might be a risky investment.

This is just our opinion as per data. Having said that, we would suggest you to always have a complete analysis of the market response to Dogecoin and how it keeps changing with times. This way you will be able to make an informed or rather a wise decision.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your own due diligence and consult your financial advisor before making any investment decisions.

Research

12 (Upcoming) Best Cryptocurrencies To Invest In 2023

Token Metrics Team
6 minutes

Investing in crypto can be intimidating, especially when a bear market is set in. And if you want to kickstart your 2023, here are a few projects you can look forward to. Note that some of these are not launched yet while some are trading.

Remember, the idea behind this is to Buy Low & Sell High; i.e., you have to get in early, accumulate, and, once you see the risk on you, start taking profitable steps to yield good returns.

Best Crypto Projects to Invest in 2023

Let's see what cryptocurrency projects you might need to look out for investment in 2023.

1. Airstack

Airstack provides data infrastructure for web3. Their APIs enable easy querying across projects and blockchains — powering a new world of data-aware experiences. It’s founded in 2014 by Ariel Seidman and Ben Wong, which now stands at a total funding of $23M - so, it's worth looking into.

2. Airchains

Airchains is a popular middleware SaaS platform that allows you to build and deploy your own dApp on any of the chains below:

  • Avalanche
  • Cosmos
  • Polygon Edge
  • Polkadot
  • Celestia 
  • Ethereum

Founded by Ankur Rakhi Sinha in 2021, it stands at a total funding of over $638M as of now. If you are a developer, who doesn’t like building tons of services all by yourself, then this is for you. The inbuilt features are something to look forward to.

3. Nolus

Nolus is the world's first DeFi Lease platform. It might sound risky at first, but let's say you borrow collateral that's more capital efficient; you can borrow 150% of your collateral but is locked in their ecosystem, and you can't get out until it's repaid. It does take a while to get it, but it's worth it.

The aim is to combine the leverage of Tradfi and DeFi with the advantages that decentralization brings to the table. With the Nolus DeFi Lease, users will hold the complete authority of customizing the parameters of the on-chain contractual agreement.

4. Nibiru Chain

Nibiru is an open-sourced platform and a member of the interconnected family of Cosmos Ecosystem. It's a competitor for dYdX; it can unify leveraged derivatives trading, staking, and bonded liquidity provision into a seamless user experience. It enables users with over 40 blockchains to trade with leverage using a suite of composable dApps.

5. Nillion

Nillion is a secure processing layer for web3 which is equipped with new capabilities and use cases for blockchain and the real world. It focuses on quick decentralized computation. Andrew Masanto, a serial entrepreneur and investor, is the Co-founder of Nillion and as of Jan 2023, it has a standing funding of over $20M. And it can be positive choice to invest in the near future.

6. Blockless

Blockless helps you launch your project on a decentralized global network. It is a WASM-based verifiable serverless functions platform that can ensures top-class security and reliability. They recently introduced Blockless ZK, a prover as a service solution powered by zkWASM. This is an added feature to guarantee the execution correctness to your WASM apps with just a single click.

7. Hivemapper

Hivemapper is the world's first crypto-enabled dashcam representing a fundamental shift in how maps are built by enabling people using dashcams to mine their cryptocurrency, HONEY.

It's yet to be launched, but you can earn tokens to drive. The dashcam costs around 600 bucks, and it's a no-brainer to get started. This has a good potential of 100x because if you are already driving, you might as well get paid for it.

8. Canto

Canto is a cutting-edge Layer-1 blockchain solution that aims to bring the benefits of decentralized finance (DeFi) to a wider audience. By leveraging the power of free public infrastructure, Canto aims to create a new type of digital commons where individuals can take control of their financial assets and engage in a wide range of financial transactions without having to rely on traditional financial intermediaries.

9. Moonbeam

Moonbeam is a multi-chain platform that bridges dApps from Polkadot and Cosmos. It is an Ethereum-compatible smart contract parachain on Polkadot with minimal configuration changes and pre-built integrations.

10. Mina Protocol

Mina Protocol is the world’s lightest blockchain powered by participants. Mina is building a low-tech infrastructure for the secure, democratic future - as we all anticipate. There is no risk of your personal information being hacked or sold. You are the only one who owns your data, and it never leaves your device.

11. Harmony (ONE)

Harmony is an open-sourced fast blockchain; running the transactions of Ethereum applications in as little as 2 seconds. It is also 100x cheaper compared to others in the market. The average cost per transaction lies at around $0.0001.

The three pillars that Harmony thrives to balance are: scalability, security, and decentralization.

It encourages random state sharding with a guaranteed security of offering 250 nodes per shard and cryptographic randomness to re-shard regularly.

12. GMX

GMX is a platform that offers up to 50x leverage directly from your wallet for trading BTC, ETH, AVAX and other top crypto currencies. This reduces liquidation risks, saves on costs, and offers a simple swap interface.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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