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ERC-20 tokens are going to rule the cryptocurrency market: When Ethereum was launched back in 2015 by Vitalik Buterin and his team, it hardly gathered any attention. Over the years, the Ethereum network has become a formidable force in the global cryptocurrency market that powers other cryptocurrencies, virtual machines, dApps, and other decentralized services. Its protocol ERC-20 is known to have powered several leading crypto tokens like Shiba Inu and Tether.
The ERC-20 protocol is popular among developers because of the ease with which it can be customized and managed. Next, as Ethereum is compatible with multiple blockchains, ERC-20 has multi-chain capabilities and can be used with several wallets. It allows developers to create smart-contract-enabled tokens that can be used with other products and services. These tokens are a representation of an asset, right, ownership, access, cryptocurrency, or anything else that is not unique in and of itself but can be transferred.
ERC-20 is the standard protocol for fungible tokens made with the Ethereum blockchain. A token that can be swapped with another token is said to be "fungible." ERC-20 enables the exchange of various smart-contract-enabled tokens. Tokens are a way to represent an asset, cryptocurrency, or anything else that isn't unique but can be transferred from one entity to another.
Here are the top 5 ERC-20 tokens that are going to rule the cryptocurrency market:
In the world of cryptocurrencies, Tether was launched in 2014 as a platform that issues blockchain assets linked to the value of government monies. Consequently, it created USDT, the first and still most widely used stablecoin. Since then, others have been added, and Tether currently supports the Chinese Yuan (CNHT), the Euro (EURT), a stablecoin linked to an ounce of gold (XAUT), and the USDT token.
It should be noted that Tether's value has occasionally fluctuated away from the currency it is pegged to, but its popularity should reassure investors that this doesn't happen often. In times of volatility, such as now, a Tether token is a recommended addition to a portfolio.
Shiba Inu is a decentralized cryptocurrency named after a breed of Japanese dog. It was launched in 2020 by an anonymous developer called Ryoshi and was designed to see what would happen if a cryptocurrency was entirely run by a community.
Like other meme coins, SHIB tokens are prone to volatility. A tweet from a celebrity can significantly impact price. However, the community is large and engaged, the price has risen considerably since launch, and the ecosystem benefits from being on the Ethereum blockchain.
The Sandbox is a decentralized 'gaming metaverse' built on the Ethereum blockchain where users buy virtual plots of land and then create experiences and games on them that can be shared with others. The platform lets users create games – which they can monetize – and build structures, items, and even 3D creatures, all of which they own and can trade or sell through the use of NFTs.
The platform uses three core elements. The first is the Voxel Editor, which lets people build models and animate them. Then there is the Marketplace, where people can trade in-game tokenized NFT ASSETS that they or others have made. Finally, there's the Game Maker, where users can build 3D games on their land using ASSETS.
The Aave platform directly connects crypto borrowers and lenders without needing an intermediary. It does this by using a system of smart contracts that automatically execute transactions based on software.
The advantage of using liquidity pools is that users can borrow different cryptocurrencies. For example, someone could add ETH to a pool and borrow an equivalent value of MANA or DAI. Similarly, lenders can add a variety of assets to a liquidity pool and earn interest.
Wrapped Bitcoin was developed to act as a bridge and facilitate transactions between Bitcoin and Ethereum. It allows Bitcoin users to access the growing Ethereum ecosystem of decentralized finance applications. It also provides more liquidity for Ethereum-based dApps.
Until the Wrapped Bitcoin project was established, there weren't many bridges linking Ethereum and Bitcoin, the two largest cryptocurrencies. The price of wBTC is backed by BTC at a 1:1 ratio, so it is directly affected by fluctuations in Bitcoin price.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
