May 30, 2023
By Murtuza Merchant
The year 2023 has witnessed a robust Bitcoin rally, with only a select few altcoins surpassing expectations. The outperforming coins can be attributed to their association with strong crypto narratives that have emerged recently.
These narratives include AI, liquid staking, perpetual DEXs, and memecoins, which have dominated the crypto trends of the year so far. However, it’s crucial to consider the potential of future crypto sectors that can generate substantial gains when the altcoin season truly takes off. Let’s explore the top four sectors and their respective tokens.
Layer 2 (L2):
Layer 2 solutions for Ethereum have gained significant traction, providing faster and more cost-effective transactions while preserving the network’s security. Although various Layer 2 projects exist, identifying the most successful ones remains challenging. Key projects to watch include Polygon ($MATIC), Arbitrum ($ARB), Optimism ($OP), Immutable X ($IMX), Loopring ($LRC), zkSync, Starknet, and Scroll.
Decentralized storage:
Decentralized file storage is crucial for the success of Web 3.0, providing dApps with the necessary space to store data. Unlike traditional centralized storage, decentralized storage allows data to be stored across multiple networks operated by users globally, ensuring security, accessibility, and ownership. Promising decentralized storage projects include Internet Computer ($ICP), Filecoin ($FIL), BitTorrent ($BTT), Arweave ($AR), Siacoin ($SC), and Storj ($STORJ).
Gaming/Metaverse/Play-to-Earn:
Play-to-Earn Metaverse-style projects represent a compelling crypto sector that can drive mainstream adoption of cryptocurrencies. Web 3 gaming platforms offer advantages such as player participation in decision-making, ownership of digital assets, and the ability to earn native tokens while playing.
Successful Web 3 gaming infrastructure relies on robust Layer 2 and decentralized storage solutions. Noteworthy gaming projects to monitor include The Sandbox ($SAND), Decentraland ($MANA), Gala ($GALA), SuperVerse ($SUPER), Vulcan Forged ($PYR), Render ($RNDR), Illuvium ($ILV), Ultra ($UOS), Highstreet ($HIGH), and Wilder World ($WILD).
Decentralized identity:
Decentralized identity systems built on public blockchains offer individuals greater control over their personal information, enabling them to manage and authorize access to their data without relying on central authorities.
This enhances privacy, security, and verification processes for various applications, such as universal logins, KYC verifications, and online voting. Key decentralized identity projects to watch include Ontology ($ONT), Civic ($CVC), SelfKey ($KEY), Metadium ($META), VerusCoin ($VRSC), and KILT Protocol ($KILT).
In the dynamic world of cryptocurrencies, prices are heavily influenced by emotions and hype. To maximize profits, staying ahead of the crowd and positioning oneself within the right narrative is essential.
By monitoring the developments and trends within these four crypto sectors, investors can gain a competitive edge and position themselves early for potential gains when the altcoin season flourishes.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
