The smell of anything brewing can be detected by people with finely trained senses of smell. As traders have come to expect, Bitcoin (BTC) is bouncing around between the same “key” support and resistance levels, and to be honest, it’s all starting to seem a little boomerish.
In order for bitcoin to reach its long-awaited “moon,” it needed institutional investor buy-in, breaking the previous all-time high of $19,000, and a number of other fundamental beliefs to come true. All of this transpired, and the subsequent rise to $64,900 well exceeded the expectations of many investors. However, if you believe that Bitcoin, the world’s most valuable cryptocurrency, will eventually reach a peak of roughly $100,000 during the present bull market, the entire situation feels predictable and monotonous.
So, let’s get back to what else is in the works…
Decentralized autonomous organizations (DAOs) are in vogue, as are nonfungible tokens (NFTs), play-to-earn games, and the Metaverse, all of which are hot topics right now.
This is where the real brains are right now – speculating, building, contemplating, networking, and doing stuff that genuinely matters to the world around them. It’s also worth noting that this grassroots approach and bottom-up development tendency is resulting in some of the most ground-breaking projects in the cryptocurrency field, which makes them stand out among other crypto enthusiasts and enthusiasts alike.
To give you an example, consider Dom Hofmann’s “Loot” project, as well as the recent Good Bridging and BridgeLoot drops in the Avalanche ecosystem.
- – randomized adventurer equipment – no graphics or stats are displayed. intended to be left out for the benefit of others to understand – no fee, simply gas
– a total of 8000 bags
The following is a link to opensea: https://t.co/qSRJ1FD0n
etherscan can be found at https://t.co/bF9p0RSHX2.
Only available on a contract basis. It has not been audited. Picture of mint at your own peril. twitter.com/uLukzFayUK
on August 27, 2021, by dom (@dhof)
The NFTs were created for free by interested participants who were prepared to pay the gas costs, and the community assigned value to the NFTs through OpenSea sales rather than dressing up in a suit and putting together a c-suite-friendly presentation and chasing after venture capital money.
After a flurry of talks in Discord, it was decided that new ideas were worth something, and anyone with an idea was free to establish their own derivative contract, where Loot holders may then replicate the minting and listing cycle again.
Upon its release, Will Papper’s airdrop of 10,000 Adventure Gold (AGLD) to Loot NFT holders quickly grew in value to more than $50,000, catapulting the entire project to fame and into the annals of history. Some would call it the “YFI” of NFTs, and it was effectively the same thing.
There is a tectonic change taking place.
What makes Loot so unique and exciting is that it has established a precedent for what is quickly becoming a new drop model in the gaming industry. An NFT or protocol is developed, and it is then made known to an interested community, which is then given the opportunity to mint tokens for free within the range of 7,777 to 10,000 tokens available. After that, the designers step back and allow the community, speculators, believers, and OpenSea to take care of the rest.
As part of his encouragement, Hofmann effectively declared, “This is yours! You can do whatever you want with it!” “Go forth and construct, my children!” The anonymous genius who orchestrated the Good Bridging (GB) token drop did the same thing, but with much less direction.
Essentially, 16,000 early adopters of Avalanche’s Ethereum-to-Avalanche bridge received an airdrop of 895 GB tokens, which were valued around $2,300 at the time of the airdrop’s peak price of $2.60 per GB. That’s not too shabby, is it?
GB holders who did not immediately liquidate the drop were entitled to mint a gasless BridgeLoot NFT as a prize. A few hours after that, the Avalanche-based NFT marketplace Snowflake confirmed and listed BridgeLoot, where many holders listed their NFTs for 20 to 100 AVAX each.
From the standpoint of the markets, money is always chasing after more money. Investors are constantly on the lookout for liquidity, and this is a major factor in the movement of prices within markets.
Hundreds of millions of dollars are being transferred from ETH to Fantom, or ETH to Arbitrum, or ETH to AVAX, or ETH to LUNA, or ETH and USDC to Web3-based decentralized exchanges like dYdX and GMX, as a result of all of the layer-one incentive launches that have taken place.
The argument is that cryptocurrency is driven by factors such as liquidity and market trends. The entire Loot phenomena let the cat out of the bag and educated builders on a characteristic that has been around for a long time but has only just been discovered by accident.
Bottom-up fundraises, non-fungible tokens with utility in the Metaverse, decentralized autonomous organizations (DAOs), and the great liquidity suck into the layer-2 ecosystem are all here to stay.
Unless otherwise stated, the thoughts and opinions expressed here are exclusively those of the author and do not necessarily reflect the views of Cointelegraph.com or its subsidiaries. Risk exists in every investment and trading decision; therefore, before making a decision, you should conduct your own study.