2 Crypto Assets That Are Suitable For Collection

2 Crypto Assets That Are Suitable For Collection In 2022

Here are 2 cryptocurrencies that are most suitable for collection in 2022.. So, what cryptocurrencies are they?. Please read this article to the end.

The producers of crypto assets had a big harvest in 2021 yesterday. How not, their crypto asset investments are really booming, some of which are Ethereum and Polkadot. The price of these 2 cryptocurrencies has soared until now the price is very expensive.

Launching The Motley Fool, Ethereum and Polkadot are programmable blockchains, designed to support smart contracts (i.e. self-running software).

In turn, these types of technology form the core of decentralized financial applications (DeFi), tools that make financial services more efficient by eliminating intermediaries such as banks.

Not surprisingly, it's value proposition has translated into rapid growth.

DeFi investment has skyrocketed more than 1,300% to $248 billion in the last year, and the huge increase in adoption has not gone unnoticed.

Institutional investors are increasingly interested in cryptocurrencies.

And when it comes to programmable blockchains, Ethereum and Polkadot are the two most popular digital assets among crypto hedge funds. That fact alone is an interesting investment thesis.

Also Read: 15 Most Popular Selected Cryptocurrencies To Invest.

These are the 2 (two) cryptocurrencies that are most suitable for collection.

Here's an explanation of Ethereum and Polkadot that you should know, as quoted from The Motley Fool:

(1). Ethereum.

Ethereum was the world's first programmable blockchain, and remains the most popular.

Currently, there are around 2,900 decentralized applications (dApps) in use on this platform, and US$155 billion invested in DeFi products.

In other words, Ethereum accounts for the vast majority of all dApps and 63% of all DeFi investments. That popularity creates a good cycle.

Users tend to migrate to platforms that offer the most variety, and developers tend to build dApps for the most widely used blockchains.

However, the popularity of Ethereum also poses a serious problem: it lacks scalability.

In fact, Ethereum can only handle 30 transactions per second (TPS), whereas Visa credit card processors can theoretically process 24,000 TPS.

And as the Ethereum network becomes more congested, transaction speeds slow down, causing delays and skyrocketing transaction fees.

Luckily, the ETH upgrade (Ethereum 2.0) aims to solve that problem. Assuming dApps and DeFi products on the blockchain continue to gain traction, the demand for the underlying ETH token will increase, as users are required to pay transaction fees with blockchain native cryptocurrencies.

In turn, increased demand for ETH will result in higher token prices.

Also Read: How to Create Faucetpay Account to Earn Bitcoin?.

2. Polkadot.

Gavin Wood is the co-founder of Ethereum, and he actually invented Solidity, the programming language used to build smart contracts on the Ethereum blockchain.

However, Wood eventually left the project to pursue his own vision. In 2017 he founded the Web3 Foundation, a nonprofit dedicated to building a decentralized internet.

Under his leadership, the Web3 Foundation launched Polkadot in May 2020.

From the start, Polkadot was built to be scalable and interoperable with external networks, two qualities made possible by its unique architecture.

Specifically, single central chains (i.e. relay chains) use stake consensus proofs to secure the entire network, while multiple programmable side chains (i.e. parachains) support a diverse dApps ecosystem.

In addition, the existence of a special parachain type bridge - allows Polkadot to share data and assets with other blockchains.

In November, Polkadot auctioned the first parachain slots to developers, and in December, the first five parachains were attached to the relay chain.

Going forward, Polkadot will continue to auction parachain slots in the future, with the aim of building an ecosystem of 100 parachains. At that time, Wood believed Polkadot could reach a speed of 1 million TPS.

Notably, the Moonbeam parachain was among the first group to be installed. it is very important because Moonbeam is the bridge that allows Ethereum dApps to run on Polkadot.

The catalyst could spark tremendous growth in the ecosystem in the coming months as developers rush to take advantage of Polkadot's interoperability.

As more consumers use dApps and DeFi products on the Polkadot blockchain, the demand for DOT tokens will increase, thus making their prices higher.