Bitcoin is great, but the real crypto innovation has moved elsewhere

Something is brewing, and those with finely tuned noses can smell it. As traders expect, Bitcoin ( BTC ) is doing “Bitcoin things” by bo...



Something is brewing, and those with finely tuned noses can smell it. As traders expect, Bitcoin (BTC) is doing “Bitcoin things” by bouncing between the usual “key” support and resistance levels, and to be fair, it’s all starting to feel a bit boomerish.

Bitcoin’s long-awaited ‘moon’ depended on buy-in from institutional investors, shattering the previous record of $ 19,000, and a set of other firmly held beliefs. Well, it all happened, and the race to $ 64,900 surpassed many investors’ wildest dreams. But despite this, the whole BTC situation looks predictable and boring if you are of the opinion that the top-ranked cryptocurrency will eventually break above $ 100,000 in the current bull market.

So, back to what else is in preparation …

Decentralized Autonomous Organizations (DAOs) are hot, Non-Fungible Tokens (NFTs) are hot, games to win are hot, and the metaverse is hot.

That’s where the real heads are right now – speculating, building, thinking, networking and doing stuff that really matters. And what’s unique about those who really work in the crypto trenches is that this popular approach and trend towards bottom-up construction is leading to some of the most groundbreaking projects in space.

Take Dom Hofmann’s “Booty»Project as an example, or the recent one Good bridging and PontLoot drops in the avalanche ecosystem.

Rather than don a costume, prepare a friendly presentation, and chase after venture capital dollars, Loot was hit free by interested attendees willing to pay the gas costs, and the community placed a value on the NFTs. via OpenSea sales.

The value of the new ideas was agreed upon by a flurry of discussion in Discord, and anyone with an idea was free to launch their own derivative contract where loot holders could then replicate the typing and signing cycle again.

Will papper dropping from 10,000 Adventure Gold (AGLD) to Loot NFT holders, quickly grew to over $ 50,000 and catapulted the entire project to stardom and the history books. It was essentially the “YFI” of NFTs, some would say.

There is a seismic change at your fingertips

What’s unique and intriguing about Loot is that it set a precedent for what is emerging as a new model of drop in space. The process is to create a product (be it an NFT or a protocol), mention it to an interested community, and allow them to coin tokens for free in the 7,777 supply range. to 10,000. After that, the creators let the community, speculators, believers and OpenSea do the rest.

Hofmann encouraged the whole family to do whatever they wanted with the project – he basically said, “This is yours! Go and build, my children! The anon genius behind the drop in Good Bridging (GB) tokens has also done the same, but with even less guidance.

Basically, 16,000 early users of Avalanche’s Ethereum-to-Avalanche bridge got a token drop of 895 GB, which at its peak price of $ 2.60 per GB was worth around $ 2,300. Not too ugly, eh?

To add to that, GB holders who didn’t immediately liquidate the drop were eligible to hit a non-gas NFT BridgeLoot as a reward, and a few hours later the Avalanche Snowflake-based NFT Marketplace checked and listed BridgeLoot. , where many holders have listed their DTV for 20 to 100 AVAX.

From a market perspective, money is chasing money. Investors are looking for liquidity, and this is part of what drives price action in the markets.

We see this happening with all the first layer incentive launches where hundreds of millions of dollars are transferred from ETH to Fantom, or ETH to Arbitrum, or ETH to AVAX, or ETH to LUNA, or from ETH and USDC to decentralized exchanges based on Web3. like dYdX and GMX.

The point is, crypto is driven by liquidity and trends. The whole Loot phenomenon let the cat out of the bag and enlightened builders on a feature that has always been around but was only discovered recently.

Bottom-up fundraisers, useful NFTs in the metaverse, DAOs, and the great liquidity sucked into the Layer 2 ecosystem are here to stay.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.