The cryptocurrency markets are currently experiencing a period of negative price depreciation known as the bear market. Due to current macroeconomic conditions, markets around the world are experiencing huge resets. During these uncertain times, investors are looking to conserve their capital and wait out this bear market. Many cryptocurrency projects are trading at a discount to their true value and this presents an opportunity for investors.
Investors can use this time to purchase cryptocurrency projects with solid fundamentals that are sure to rebound when the bear market ends. In addition, cryptocurrency investors can use this opportunity to remove projects they feel won’t perform well from their portfolio. It is important for investors to conduct thorough research before they invest into any projects during these volatile times.
Three cryptocurrency projects to watch in this bear market are: Uniswap (UNI), Compound (COMP), and Supontis Token (PON). These three projects are changing various areas of crypto and continue to provide utility for their users. Furthermore, their strong use cases ensure that there is a continued demand for their services. Here is a brief summary of these projects.
Uniswap (UNI) is a decentralized exchange that allows the trading of ERC-20 tokens using an Automated Market Maker model. ERC-20 tokens are built on the Ethereum (ETH) blockchain and use its standards. Uniswap launched in 2018 and trading on the protocol is open to all ERC-20 token holders. Users are free to swap and trade tokens on the protocol using liquidity pools. The Uniswap liquidity pools are funded by liquidity providers who are users that deposit tokens in pools for a share of trading fees.
Uniswap provides solutions to the problems posed by the earlier exchanges in crypto (both centralized and decentralized). Furthermore, it has succeeded in creating a stable token trading protocol. UNI is the governance token of the Uniswap protocol and it grants its holders voting rights. The Uniswap DAO has more than 300,000 members that control its $1.6 billion treasury. Users who hold the UNI governance tokens automatically become members of the Uniswap DAO.
Compound (COMP) is a DEFI lending protocol that allows users to borrow various cryptocurrency using collateral and paying a fee. The protocol uses liquidity pools funded by users known as liquidity providers. When liquidity providers deposit tokens into a pool they receive cTokens which serve as a deposit receipt. For instance, if you deposit ETH tokens, you will receive cETH tokens in return. These cTokens can be exchanged for the original tokens plus fees accrued at any time. Liquidity providers supply their tokens because they receive a share of the fees while borrowers are happy to use the liquidity.
Compound collects collateral deposits plus fees from borrowers in exchange for a loan. The protocol maintains an LTV (loan-to-value) ratio of between 50-75% depending on the crypto asset used as collateral. Interest rates charged by Compound are dependent on the crypto asset borrowed while borrowers get liquidated if their collateral falls below expected price ranges.
Supontis Token (PON)
Supontis Token (PON) is a cross chain bridge for the Fantom (FTM), Binance (BSC), Tron (TRX), and Ethereum (ETH) blockchains. It would connect these blockchains together and enable assets on one blockchain to be used seamlessly on another. Furthermore, it would allow these transactions to occur using lower fees and fast transactions. Supontis is a next generation bridging solution that would help users move seamlessly between blockchains without worry.
PON is the native token of the Supontis Network and it would also serve as its governance token. The protocol would be controlled by its DAO which would decide how it operates and the decisions it takes. In addition, PON holders can stake their tokens to earn more rewards as the bridging protocol uses a Proof of Stake consensus mechanism to secure the network.
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