Although the cryptocurrency markets have recently shown some signs of life, overall, we are still smack dab in the thick of a bear market. However, that does not imply that nothing intriguing is occurring. Here are three blockchain and cryptocurrency initiatives to keep an eye on this week.
3. Polygon (MATIC)
A Proof-of-Stake blockchain platform compatible with Ethereum is called Polygon. After Ethereum began to experience problems with high transaction fees, it quickly became one of the most well-liked Ethereum alternatives. MATIC, a native element of Polygon, is used for important network functions including staking and paying transaction fees. The team was able to launch a variety of initiatives to further speed growth thanks to Polygon, one of the first Ethereum scaling platforms to experience considerable usage.
Nubank and Polygon Collaborate, and Reddit NFTs Take Off
The project recently announced a cooperation with Brazil-based neobank Nubank, which would be developing a crypto token leveraging Polygon's technology. Polygon has been successful in acquiring important partnerships.
Nubank intends to use the cryptocurrency token, called Nucoin, as a client loyalty token. The Polygon Supernets technology, which enables the development of blockhains tailored for particular uses, will be used to launch Nucoin. The estimated release date for Nucoin is the first half of 2023.
Some of the prior alliances that Polygon established are also paying off. The Collectible Avatars on Reddit, which are NFTs on the Polygon blockchain, have gained the most attention lately. According to a Dune Analytics dashboard, there are currently approximately 3 million owners of Collectible Avatars, with an estimated $8.7 million in sales.
2. Klaytn (KLAY)
Kakao, one of South Korea's top publicly traded internet businesses, announced the public blockchain project Klaytn in June 2019 through their blockchain division GroundX.
The Klaytn project aims to provide a straightforward, user-friendly experience to maximize the adoption of blockchain technology, making the user experience similar to that of websites and mobile apps, where the user is unaware of the technology that makes it all possible.
The Klaytn blockchain utilizes a practical Byzantine Fault Tolerance (pBFT) consensus mechanism and is compatible with the Ethereum Virtual Machine (EVM). Three different types of nodes—consensus nodes, proxy nodes, and endpoint nodes—maintain the network. The Klaytn Governance Council, a collection of organizations chosen by Klaytn, runs the consensus nodes. Essentially, this means that in order to improve performance, the Klaytn blockchain must make some decentralization compromises.
KLAY Block Reward Decrease and Buyback Program Helps Klaytn
Due to two major developments that might make the token a more desirable asset to hold, the KLAY markets have been in overdrive lately. The block incentives for Klaytn have been decreased from 9.6 KLAY each block to 6.4 KLAY per block, which is the first significant change. This modification is a part of a governance proposal that also changed how the block reward is allocated to various Klaytn ecosystem stakeholders:
- Governance Council: 50% of the block reward
- Klaytn Growth Fund: 40% of the block reward
- Klaytn Improvement Reserve: 10% of the block reward
The Klaytn Foundation has revealed a buyback scheme in addition to the modifications to block rewards. The program involves buying KLAY on the open market and then burning the tokens you just bought. With the help of its stablecoin holdings, the Klaytn Foundation is paying for the purchases. How much the foundation intends to spend on the repurchase program is not yet apparent.
The price of the token doubled between October 22 and October 27 as a result of these occurrences, which also contributed to a significant increase in the KLAY markets. This may also indicate that the KLAY markets are overbought and that a price correction is imminent. In any event, it will be fascinating to watch the KLAY markets during the coming days.
1. Dogecoin (DOGE)
A cryptocurrency called Dogecoin was introduced in 2013 as a mockery of the rumors around Bitcoin and other cryptocurrencies. Despite its comical beginnings, Dogecoin has endured in the quickly changing cryptocurrency market and continues to have a significant fan base. The 2021 cryptocurrency market bull run attracted a lot of attention to Dogecoin, which helped it rise to the top of the market cap rankings.
Elon Musk, the CEO of Tesla and SpaceX, frequently mentioned and supported Dogecoin, which was one of the main reasons it gained popularity. Due to Dogecoin's popularity, numerous imitation "meme coins" have been made, most notably Shiba Inu (SHIB).
Because Dogecoin and Litecoin both employ the same Proof-of-Work algorithm, miners can simultaneously "merge mine" both cryptocurrencies. Dogecoin has managed to exceed Litecoin in terms of market valuation, despite the fact that it was formerly thought of as a "byproduct" of Litecoin mining. The maximum supply of DOGE is theoretically limitless, in contrast to the majority of Proof-of-Work cryptocurrencies, which have a limitation on their maximum supply. Every year, the DOGE coin supply grows by 5 billion.
Twitter's Acquisition by Elon Musk is Expected to Increase Awareness of Dogecoin
The Dogecoin market is all about hype and momentum, and Elon Musk, the project's biggest supporter, has recently returned to the news after completing his contentious purchase of Twitter.
Dogecoin's potential role in Musk's ambitions for Twitter will undoubtedly be the subject of considerable discussion, even if the news surrounding Musk's purchase of Twitter is likely to be mostly focused on changes to the company's C-suite.
The acquisition news gave DOGE a boost after it had been trading in a range from October 15 to October 24 around the $0.060 price point. Before sellers entered the market to make money, the Dogecoin price rose to a local high of little about $0.085 in value.
Regardless of the validity of the dogecoin and twitter rumors, it is certainly normal to anticipate increased levels of volatility in the dogecoin market while the Twitter acquisition rumors are still fresh.