Altcoins experienced many challenges in 2018.
Many altcoins are struggling to rise after the bear run in 2018 that caused significant price drops.
Optimistic traders believe that the solutions that these cryptocurrencies support are here to stay and so are cryptocurrencies. Recently, Bitcoin price fell below the $4,000 mark. Many perceive this as an opportunity to jump into the market.
It’s important to understand that the digital assets industry is currently in its nascent state.
Driven by sentiment and characterized by wild volatility, the market continues to trouble investors when it comes to assigning a value to the solutions that the cryptocurrencies support.
We’ve handpicked 3 altcoins which we believe possess the fundamental characteristics that can justify cryptocurrency traders including them in “keep a watch” list for 2019.
We’ve taken into consideration a number of things regarding the cryptocurrencies we’ve chosen:
- Number of decentralized apps developed
- Increase in on-chain transactions
- People behind the scenes — social media promoters and financial backers.
- Apparent liquidity — significant exchange listings and fiat on-ramps.
- Amount of Github activity
- Size and enthusiasm of an asset’s community.
- Exposure to potential legislative action
Our aim is to identify few fundamental cryptocurrency attributes that might become value indicators in the near future as the market matures.
The Tron platform with its attached native token TRX, is regarded as a Web 3.0 disruptor.
The Tron blockchain has already started taking its first, shaky steps towards evolving into a true crypto-asset platform. The team behind Tron has more ambitious projects in their roadmap.
Analysts estimate that their upcoming projects have more potential than anything that has already been built.
Stepping into The Torrent Community with Project Atlas
The most exciting of the announced initiatives is Project Atlas. Tron purchased the Bittorent client in June 2018 and is looking to integrate it into the blockchain under this project.
According to a recent estimate by BitTorrent, they have over 170 million active users a month, and 45 million users use the platform daily. Although only a small portion of these users might interact with Project Atlas, the purchase allows quick access to a huge pool of potential users who can be enticed to start using the platform down the line.
Currently, under Project Atlas, Tron provides TRX based rewards to peers who actively seed. Seeding simply means when someone opts to keep uploading and sharing the file with others on the network after it has been downloaded successfully by the seeder.
Gambling Focused Dapps
The Tron Dapp store has fourteen Dapps, most of which are gambling-based.
In this regard, Tron competes directly with Ethereum which has a larger and more varied database of Dapps on its Dapp store. But the trading volume and active wallet address metrics between the two cryptocurrencies are comparable, with Tron’s blockchain casino getting popular quickly in recent weeks.
Decred is a hybrid Proof-of-work + Proof-of-stake blockchain. The community has welcomed its unique solution to network governance & decision making. Decred has established itself as a direct competitor of Bitcoin and Litecoin as it is also capable of creating and supporting a P2P payments ecosystem secured over an immutable blockchain.
Increased Hashrate and Security
Since April 2018, the hashrate for the Decred blockchain has increased by 2000%. But DCR’s price has continued to struggle. Over the same period, DCR’s price has fallen by 74%.
The increase in hashrate for Decred corresponds to greater immutability and better security against future bad actors like 51% attackers.
The main reason for this explosion has been linked to the development and usage of ASIC capable Decred mining units built by companies like Micro BT.
Usually, the hashrate of Proof-of-work blockchains decreases as the price of its rewarded token decreases. This is because as the price falls, miners earn less per block reward and they start mining that token less frequently.
The fact that Decred’s miners are not slowing down because of short-term price changes indicates a long-term belief in the potential of the DCR token and Decred’s solution.
New Platform to Support Decred’s Governance
Politeia is a platform being developed to facilitate the submission, tracking, and discussion of Decred governance proposals by the stakeholder community. It is expected to launch in 2019 and is the next big thing on Decred’s roadmap.
Proposals can be made to:
- Generate support for a network update like a software development
- Request the usage of DCR towards a proposal’s aims
The launch of Politeia will add to the value of utility of the Decred’s blockchain and also to the DCR token. Depending on the proposals put forward by the community as part of Politeia, the evolution of Decred is likely to be significantly influenced.
Zcash is designed as an open, permission-less cryptocurrency that keeps transactions private using zero-knowledge cryptography.
The concept of zero-knowledge proof cryptography is interesting: if you’re the prover, you have to prove the hypothesis to the verifier to be true. But you cannot reveal any other information about the hypothesis other than it being true.
Reduction in Processing Time and Adoption Barriers
Zcash provides the flexibility to have shielded (more private) or unshielded transactions. But the shielded transactions take more time to process because of obvious reasons. This has affected Zcash’s adoption rate severely.
But the October 2018 update for the Zcash network has changed the scenario completely. The evolution of the Zcash network from its initial release has led to a 90% processing time reduction and 97% reduction in memory usage over shielded addresses.
As a result, several vendors, mobile providers, and exchanges are now more inclined to open their arms and embrace Zcash’s shielded transactions.
There has already been a tangible positive shift in network shielded transaction usage in the lead up to and since the October 2018 update, indicating community enthusiasm for the update as well as the efficacy of the solution it provides.
The Coinbase effect
On November 30th, ZEC went live on bluechip crypto exchange Coinbase. Coinbase has a very high reputation is the crypto trading circles. The ‘Coinbase effect’ is a well-known phenomena which is associated with a rise in price. There is also a perception of momentum generated for cryptocurrencies leading up to and around the times of listing.
Consider this: after news started floating that Coinbase was exploring the idea of listing ZEC in July, the price of the token rose by 30% in just 12 days, peaking at $226.33 on July 26th. The average daily price of ZEC has not been higher than this since the initial announcement of trading.
Tron, Decred, and Zcash seem to be on the rise in 2019 with their solid roadmap and community support.
Tron has a market cap of almost a billion dollars and trades on a multitude of exchanges with a wide range of available pairs. But SEC can create trouble for it if they decide that Tron is a security and not a utility token.
Decred’s hashrate indicates a strong long-term growth which just might survive the crypto winter and emerge as a project with strong value propositions when the market’s bear run ends.
Zcash also continues to redefine its value and position in the market. With a major network update and a change to the fundamental structure of its mining on the blockchain, 2018 has been a transitional year for the ZEC. It’s now primed for 2019 and will show good growth once the overall market sentiment turns positive.