Mainstream currencies generally refer to the top digital currencies with larger market value on exchanges, and these currencies are also recognized and supported by most crypto enthusiasts.
The main indicators for examining mainstream coins are as follows:
Fundamentals：Code submission activity (Git repository usage), number of active nodes/addresses, credit level, popularity, network difficulty, market environment, etc.
Adoption：Derivatives transaction size, market size as a means of payment/store of value, etc.
Formation：Currency prices and their trends, including volume, market cap, and market sentiment
Stablecoins are cryptocurrencies pegged to the U.S. dollar. These include Tether and USDC. Their purpose is to allow cryptocurrency traders to keep their tokens in the crypto ecosystem without experiencing the volatility of Bitcoin and Ethereum price fluctuations.
Many cryptocurrencies are designed to provide utility or service. Memecoins offer no utility prospects and exist purely as speculative assets. Dogecoin is the best known, but there are many, many more.
Shitcoin is an altcoin that provides no utility, be it a memecoin or a void altcoin. Chinese investors generally refer to such coins as “air coins”.
A token designed to provide some kind of functionality. These can be accesses to applications, services or games. Examples include Filecoin, which grants access to blockchain-based digital storage, and Link, which connects smart contracts for off-chain types of data.
The platform token is the platform token issued by the digital currency trading platform. Generally refers to the tokens issued by the exchange, and the value of the tokens is increased through regular repurchase and destruction, mortgage fees, such as: BNB (Binance), BIG (BigONE), OKB (OKEX), HT (Huobi) Holding platform Coins can generally obtain the following related benefits:
- Enjoy transaction fee discounts and deduct transaction fees;
- Vote for listing to get token rewards;
- Used to participate in platform activities, obtain airdrop rewards, etc.;
- The on-chain fuel used for the decentralization of the platform in the future can be understood as the fee paid to the miners;
- It is used to realize the rights of some investors, such as repurchase, preferential subscription of listed new coins, income dividends, etc.;
The logic of the algorithmic stablecoins on the market is similar. Basically, it is based on the anchored price of 1USD, and uses additional issuance, deflation, bonds, dividends and other tools to solve the problem of anchoring 1.
Blockchain fork is a unique method for solving the contradictions of blockchain participants. It is divided into soft forks and hard forks. BCH and BTG are the products of hard forks. Now LTC It’s the product of a soft fork.
Given that the blockchain is a public ledger for recording transactions, since there are multiple blockchains, which means that there are multiple versions of the transaction ledger, it is natural that other tokens will appear. Just like Ethereum, there was a hard fork because of the TheDao incident, and as a result, it was divided into two blockchains, and there were two ethers, ETH (Ethereum) and ETC (Ethereum Classic). In addition to Bitcoin and Ethereum, many other public chains have also generated new forked coins.
Due to the birth of famous DeFi projects such as MakerDAO, Compound, Aave, Uniswap, etc., governance tokens also came into being. A governance token is a token that grants its owner voting rights in a specific protocol.
There are currently two ways to calculate voting power for governance tokens: token-weighted voting (equivalent to protocols) and time-weighted voting (like curves). Voting power is weighted by the number of tokens, meaning the more governance tokens a holder holds, the more weight they have in a decision on an issue. And time-weighted voting rights give more power to those who lock up governance tokens for longer periods of time.