In my last article, I talked about the race to see which blockchain wins the title of the #1 smart contracts platform. And we looked at how Bitcoin Layer 2’s were entering this race in the form of inscriptions and runes.
I was speaking with a friend who is very well-respected and well-known in crypto, and while talking we both had an epiphany; the FUNCTIONALITY of these blockchains isn’t what determines the winner! If that were the case, BSC (Binance Smart Chain) would have already been crowned King during the last bull run! Think about it: BSC is efficient, fast, cheap, and has almost zero downtime.
So, what then determines the winner? Well, rather than merit, our epiphany was that the “winners” are chosen by influential and powerful people or organizations who put money and effort into bringing liquidity to any particular chain. And, a chain that is “en vogue” today might not be tomorrow. BSC is backed by Binance. Binance has the power to bring attention and liquidity to its chain. However, Binance is mired in controversy at the moment. Hence, BSC is no longer the “chosen one.”
What Are The Current Hot Blockchains?
So, which blockchains are hot right now? I believe it is the following: TON (backed by the Telegram app), BASE (backed by Coinbase), and CORE (a very efficient and well-functioning BTC L2 chain). Of course, Solana has been hot, but that isn’t breaking news. I’m talking about chains which are still quite early.
Each one of these chains has its own ecosystem of gems, of course, so being early can represent a tremendous opportunity.
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While BASE has already been popular, it has mostly just been due to memecoins. I believe we will see BASE evolve into utility usecases, just like we saw with Solana. SolMail, SolSnap, and other utility projects sprung up on Solana AFTER “meme season” had matured. The same may happen on BASE.
TON is showing a similar pattern right now. Memecoins are raging, but probably not for long: soon we will see utility coins start to dominate as the TON chain matures.
Adapting to Market Dynamics
Will BASE, TON, and CORE remain the “hot” chains throughout the entire bull run? Probably not. So, don’t “marry” one particular chain. Rather, try to stay ahead of the game by keeping an eye on where people are rotating next. I didn’t make up the rules; this is crypto and this is just how it works.
In the long run (such as 5-10 years), the winning blockchain probably will be chosen based primarily on “the best technology.” However in the short term (this bull run, let’s say the next 6-12 months), technology is secondary to liquidity, and liquidity is determined by powerful entities like Coinbase, Binance, and Telegram.
If you would prefer a more long-term investing strategy without so much chaos and volatility, I would suggest sticking with large caps such as BTC and ETH. Another narrative with huge potential – and with less volatility and turnover – appears to be DeSci (Decentralized Science). I’ll be covering DeSci in my next article, so stay tuned!
