The cryptocurrency market, known for its rapid evolution and frequent volatility, constantly makes headlines. While media coverage often focuses on record prices and spectacular returns, the most fascinating developments are happening on the technical front. In this space, decentralized finance (DeFi), NFTs, and virtual reality (Metaverse) projects continue to evolve rapidly.
So, which representatives of these segments deserve attention—and why?
Terra: Stablecoins of the Future
Solana: High-Frequency Blockchain
Decentraland: The Digitization of Reality
Dogecoin: A Joke Worth Billions
Ethereum: The World’s Supercomputer
1. Terra: Stablecoins of the Future
In terms of returns, this crypto was the absolute number one in 2021. The token, Luna, gained as much as 11,500% in 12 months and, by mid-November, Terra ranked 14th in market capitalization on coinpaprika.com. Terra is a blockchain that enables the creation of “stablecoins”—tokens with stable value that allow for payments without the volatility risk of market prices. Terra addresses the major problem of exchange rate fluctuations that we know all too well from Bitcoin (which can cost $68,500 one day and be 10% cheaper the next).
This isn’t the first project in this space. The most well-known stablecoin is Tether, but its problem (and others like it) is that it’s centralized and backed by a single company ensuring price stability. Terra, on the other hand, is decentralized and relies on an algorithm and an active community to maintain its stability. Despite only launching in 2019, its high market cap ranking shows strong user interest and trust.
2. Solana: High-Frequency Blockchain
Though launched only in 2020, Solana ranked fifth in market capitalization by November of the same year. Its token, SOL, saw a price surge of nearly 10,000% in one year. Solana is part of the DeFi segment and serves as a blockchain for fast and low-cost transactions. It addresses the scalability and capacity issues of better-known blockchains, particularly Ethereum, which has struggled with network congestion (as seen in 2017 with the CryptoKitties phenomenon).
Solana markets itself as the world’s fastest-growing crypto ecosystem. According to solana.com, on November 22 the network processed 2,705 transactions per second with an average fee of $0.00025. This high throughput is thanks to innovations like its unique transaction serialization method called Proof of History. Solana is considered a third-generation blockchain—combining Bitcoin and Ethereum’s features with superior operational efficiency.
3. Decentraland: The Digitization of Reality
Decentraland is a virtual reality (Metaverse) built on the Ethereum blockchain. It’s a 3D game where users, via avatars, can create their own realities—buying land, building businesses, and monetizing their activities. The game’s cryptocurrency is MANA, which surged by nearly 4,500% in 12 months. NFTs in the game serve as digital property rights.
Decentraland is a blend of the NFT and Metaverse segments. This year saw several major milestones: in June, investment firm Republic Realm bought virtual land in Decentraland for $900,000, and in October 2021, the government of Barbados became the first to open an embassy in the virtual world.
As of mid-November, the Metaverse crypto market had a capitalization of about $40 billion USD, with four projects—Axie Infinity, Decentraland, Enjin Coin, and Sandbox—making up 50% of it. Mark Zuckerberg’s announcement of Facebook entering the Metaverse was a key growth catalyst.
4. Dogecoin: A Joke Worth Billions
This cryptocurrency doesn’t compete technologically or innovatively with the others mentioned here. However, in terms of entertainment and viral success, it’s a true phenomenon in the crypto world. Created as a joke, Dogecoin unexpectedly garnered a massive following—including the world’s richest man, Elon Musk.
While not technologically advanced, Dogecoin has been used for tipping online and funding community initiatives (like the famous fundraising campaign for the Jamaican bobsled team to attend the Sochi Olympics).
Thanks to a passionate community and #dogecointoonedollar campaigns, its market cap rose 6,700% in one year—ranking seventh in the sector. But remember: investing in Dogecoin is purely speculative and comes with high volatility and vulnerability to “pump-and-dump” manipulation.
5. Ethereum: The World’s Supercomputer
Ethereum has long held the number two spot in market capitalization. Though it rose “only” 680% this year, many believe it’s closing in on Bitcoin. As of mid-November, Ethereum’s market cap was $0.5 trillion versus Bitcoin’s $1.1 trillion.
Two major points support Ethereum’s dominance:
The vast majority of alternative cryptocurrencies are built on Ethereum’s blockchain. According to icobench.com, 87% of all token launches used Ethereum.
Ethereum is undergoing a major technical upgrade from Proof of Work (PoW) to Proof of Stake (PoS). Though gradual, this transition is expected to complete next year. If successful, it will greatly boost Ethereum’s throughput and scalability, further solidifying its role as the world’s decentralized supercomputer.
