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Sunday, September 19, 2021

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What makes Filecoin, Graph viable for long-term investments, alongside Ethereum

Lately, people have started looking at decentralized protocol tokens as viable long-term investment options. In the crypto industry, the term decentralization is generally used as an absolute. However, that is not exactly the case.

Decentralization can be considered a spectrum, and some protocols, such as those created on Ethereum, are much more decentralized compared to their counterparts. Here’s everything long-term HODLers need to know about this.

Decentralization: the way forward

Tokens associated with decentralized protocols have been gaining in value lately. In hindsight, the market has also witnessed an increase in its demand. Consider Filecoin, to begin with. It is a decentralized L1 protocol that allows anyone to provide verifiable storage and other parallel services.

Filecoin currently has more than 3,000 storage providers and 10,000+ developers building applications on its network. The wide use of this protocol has been able to generate more than $ 1.4 billion in revenue per protocol.

Source: Token Terminal

Similarly, the popularity of the Graph token has exploded lately, thanks to the buzz built around application programming interfaces (APIs). According to data from the latest “Spencer Noon” Newsletter, API Key Creation experienced 195% growth over the past 2 months as dApps have been migrating their subgraphs from the hosted service to The Graph Network. Interestingly, the migration was primarily intended to defend the sanctity of decentralization.

Source: Spencer Noon Newsletter

Status of on-chain metrics

Well, the on-chain metrics for FIL and GRT looked attractive at the time of writing. The buying impulse was quite present in both markets. For example, the buy operations associated with GRT had been able to outrun the sale trading at more than 10 million tokens in the last 12 hours alone.

Filecoin’s trading volume also witnessed an increase in recent days. For most of August, FIL’s volume hovered around the $ 500 to $ 800 million range. However, the same has been hovering well above $ 2 billion lately. The value of these two alternatives appreciated by more than 41% (FIL) and 13% (GRT) only in the last week.

Source: MonedaMercadoCap

The dominance of the market capitalization of these two tokens also witnessed a rebound. At the time of writing, FIL managed to claim a 0.2% dominance in the market, while GRT’s dominance stood at 0.17%.

Furthermore, these two tokens share a high correlation with Ethereum and are in a pretty good position to benefit from their next meeting as well. Therefore, long-term investors may consider adding these two alternatives to their portfolios alongside the largest alternative on the market. Over time, when adoption of these two tokens increases, their respective values ​​will rise even higher.

This is a machine translation of our English version.

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Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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