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Polkadot is one of the projects that were created in order to solve the crypto industry’s scalability issue. After seeing Ethereum’s flaws, Polkadot emerged to try and offer an alternative blockchain — a development platform that will run smoother and faster, with much lower transaction fees and essentially no waiting period for transaction processing.
The project has been growing ever since, and right now, at the time of writing, its ecosystem features around 115 cryptocurrencies that operate within its network. Today, we wanted to list seven of them, which we believe are some of the best investments in this ecosystem. At least, we find these to be tokens worth keeping an eye on in March 2022, and beyond.
It likely doesn’t come as a surprise that we find Polkadot (DOT) itself to be the top token in Polkadot’s own ecosystem. The project has created a unique solution by developing the main chain, accompanied by numerous parallel chains that are there to take over a portion of the work, thus preventing the main chain from becoming overburdened.
These so-called parachains have another very important ability, and that is the capability of connecting to other blockchains. In doing so, Polkadot can use them to create a cross-chain network, with its own ecosystem at the heart of it, and allow projects to quickly and easily send money and data through its parachains.
This alone makes its contribution to the development of Web 3.0 invaluable, which is why its token is the top-ranking one on our list, and also why it ranks so high in the crypto industry itself.
To learn more visit our Investing in Polkadot guide.
Next up, we have Ren (REN), which is an open protocol created to provide interoperability and liquidity between different blockchain platforms. Initially, the project was called Republic Protocol, but it then rebranded into Ren. It also launched a virtual machine mainnet called RenVM, and it uses its native cryptocurrency, REN, as a bond for those who run nodes and power RenVM.
One of the Ren project’s main goals is to expand the interoperability of the cryptocurrency industry. In doing so, it hopes to also boost its accessibility, particularly when it comes to decentralized finance. DeFi holds huge potential as it is, and it has been one of the biggest trends of the crypto sector since it explode in 2020. By making it more accessible to people all over the world, Ren can help people in need finally reach banking services, even if they are decentralized ones, instead of traditional ones. Its contribution to achieving its goal revolves around removing hurdles involved in liquidity between blockchains.
To learn more visit our Investing in Ren guide.
In the third spot, we have Centrifuge, which is a project on Polkadot that wishes to bring real-world assets into the digital world. The project’s goal is to help connect the real world with the DeFi sector. As such, Centrifuge can be described as a decentralized asset financing protocol, whose aim is to reduce the cost for small and mid-sized companies. And, of course, the project is not ignorant of its investors’ needs and interests, which is why it offers them a way to receive passive income on regular basis.
Centrifuge, however, doesn’t work in the same way as DeFi protocols usually do. It can be used to generate profit, yes, but unlike the situation in DeFi, where the profits come in the form of rather volatile digital coins, Centrifuge aims to transfer real monetary value from the real world’s fiat currencies into the digital world. This is fairly similar to the way stablecoins work.
This method can be used by mid-sized and smaller companies to access the liquidity that the DeFi sector has to offer. They can also use other advantages of the blockchain industry, such as the ability to tokenize assets, use tokens as collateral for loans, and alike. All in all, it is an interesting project that has great potential, which is why we believe it deserves a place on this list.
To learn more visit our How to Buy Centrifuge guide.
4. Ocean Protocol
Moving on, we have the Ocean Protocol, which is our fourth choice. This is an ecosystem that offers its services to individuals and businesses alike, and it can provide them with an easy way to unlock the value of data. As most people likely know, data has grown to become the most important asset in the online world.
It is wanted by everyone, from government agencies to private companies, and even hackers and scammers. Every website is logging the users’ information, and many of them sell it to larger entities, such as advertisement companies, solely for the purpose of making a profit. However, the user, who is the actual owner and producer of that data gets nothing. Ocean wishes to change this by allowing users to monetize their data and only share it with entities that they wish to share it with, and never for free, but in exchange for proper compensation.
The project features special datasets, each of which is represented by a unique datatoken, and these tokens can be used to wrap a dataset or a compute-to-data service. Essentially, this allows 3rd parties to perform various operations using said data, without it leaving the secure enclave of the data publisher.
The project certainly has great potential for the future of data, as well as for the potential to earn from it, which is why we believe it should be closely watched moving forward.
To learn more visit our Investing in Ocean Protocol guide.
5. Celer Network
In the fifth spot, there is the Celer network, which is a project that aims to explore new opportunities, not only in Polkadot’s own ecosystem, but also on other chains, including Ethereum. It is a layer-2 scaling platform application whose main goal is to offer off-chain transaction handling for different blockchains. Of course, to achieve this, it is also seeking integration with these different chains.
The project was created for a similar reason as many other projects that aim to improve scalability — because of the problems that Ethereum’s network is experiencing. Polkadot, for example, decided to run parachains and outsource a portion of the work to different side chains. Celer Network, on the other hand, decided that an additional solution is required.
The project does expect that a day will come when some blockchain will be powerful, fast, and scalable enough to handle all the transactions that the entire world will require it to handle. But, until that happens, it will be offering its own solution to make transactions fast, secure, and simple.
To learn more visit our Investing in Celer Network guide.
Nearing the end of the list, we have renBTC. This is a project that aims to free Bitcoin of its isolation and grant it access to other blockchains and their features, capabilities, and benefits. Essentially, it is a competitor of Wrapped Bitcoin (wBTC), but it is not just another similar project. Its offering differs from other Bitcoin-backed tokens because this is not a synthetic token.
As such, renBTC does not need to rely on any liquidation mechanisms to make sure that it will remain pegged to Bitcoin’s value. Instead, it features a direct supply peg, which further means that there will always be enough Bitcoins in the project’s reserve to cover the circulating renBTC supply.
And, since it is all based on blockchain, it is also fully transparent and completely safe to use. Minting the renBTC tokens is simple, and so is retrieving Bitcoins from renBTC. And, while the project originally emerged on Ethereum it is also capable of bringing BTC to other chains, including Polkadot.
To learn more visit our Investing in renBTC guide.
Finally, we have Shadows. This is a project that aims to become a leading protocol for those who are interested in lending/borrowing and derivatives trading on Polkadot. The project has a strong focus on the DeFi sector, which is fairly clear. Like other DeFi protocols, its goal is to provide users with a quick and simple way to access the financial industry.
However, Shadows’ main focus is on accessing the massive derivatives industry. This is an industry that regularly sees massive amounts of money flowing through, and it is estimated to be worth billions of dollars right now. Shadows believes that its users could use this to their advantage, and by accessing the industry, they could find countless new opportunities.
Eventually, Shadows hopes to redefine what investment opportunities are in the blockchain sector. It offers an application known as Shadows dApp, which is a web-based derivatives platform that lets users issue derivatives, trade them, or even stake them.
To learn more visit our Investing in Shadows guide.
Polkadot has a lot of potentials, and that goes for many cryptos that operate in its ecosystem, including DOT itself. The list above is showing seven tokens that we liked the most based on what they do, how popular they are, and similar criteria. So, if you are interested in Polkadot’s ecosystem and you wish to get more involved with it, we recommend looking into these 7 coins. You might find that some other crypto is better suited for you, and that is perfectly fine. With this list, we only wanted to give you a place to start your research and share our own thoughts on what Polkadot has to offer.