OpenSea is a New York-based online marketplace that allows users to create, buy, sell, and exchange NFTs.Read our review
Uniswap is a decentralized exchange that processes trades using Ethereum smart contracts.Read our review
Ethereum Name Service
Ethereum Name Service is a naming system that allows users to convert long crypto addresses into simple domain names.Read our review
Chainlink is a blockchain platform that allows smart contracts to access real-world data, thereby bridging the blockchain and the real world.Read our review
Summary: Our investing thesis is that Layer 1 blockchains are the “operating systems” of crypto, and Ethereum is currently the leading operating system by far, making it a promising long-term investment. For those who want to invest in individual “applications” running on top of Ethereum, we’ve rounded them up here.
Ethereum has become the largest and most popular Layer 1 blockchain. It is home to thousands of blockchain projects, also known as decentralized apps (dapps). These dapps run financial, gaming, trading, NFT and many other services, built on top of on the Ethereum blockchain.
For investors, this piece will cover some of the top projects building on the Ethereum network. We will also look into what they are trying to achieve and how rapidly they are growing.
|Number of Transactions||Transaction Value (USD)||Avg. Transaction Fee||Number of users||BMJ Rating|
|Ethereum Name Service||1.68m||$10.3m||$9.38||406k||4.5|
Number of Transactions: 5.61m
Transaction Value: $57m
Avg. Transaction Fee: $9.71
Number of users: 1m
OpenSea is a New York-based online marketplace that allows users to create, buy, sell, and exchange NFTs. Since its launch in 2017, OpenSea has become one of the leading Ethereum projects. The NFT trading platform currently services well over a million users. It is often regarded as the largest NFT marketplace.
OpenSea is similar to an art gallery filled with unique sculptures and paintings. Anyone can walk into this gallery and buy art from the gallery owner. The gallery owner then gives the artist the earnings after taking their cut. In this case, the art is the NFT, and the gallery owner is OpenSea. Creators can list their NFTs on OpenSea, and other users can buy them. OpenSea charges a transaction fee of 2.5% for every NFT traded on its platform.
This platform offers its users a choice of more than 700 different NFT projects.
Users can trade rare digital assets like sports NFTs, art, virtual worlds, collectibles, decentralized domain names, and trading cards. Over 80 million unique NFTs and 2 million NFT collections are available on the platform.
NFTs are traded through smart contracts giving creators complete control over their intellectual property. OpenSea hopes to be the most secure NFT marketplace in the world, and with its ever-growing user base, the platform is on its way to achieving that goal. (BMJ Rating: 4.5)
Number of Transactions: 3.43m
Transaction Value: $10.1m
Avg. Transaction Fee: $0.13
Number of users: 3.9m
Uniswap is a decentralized exchange that processes trades using Ethereum smart contracts. It was founded in 2018 and allows users to seamlessly swap Ethereum-based tokens without a central authority or intermediary. These swaps are powered by liquidity providers, investors that provide the capital for the liquidity pool. Uniswap charges a small fee on every trade. This fee is paid to the liquidity providers, allowing them to make their money work for them.
The Uniswap platform uses an automated market maker to determine the price of a token based on the supply and demand in a specific liquidity pool. The more token there is in a pool, the lower the price and vice versa.
For example, a liquidity pool that contains Ethereum tokens and Basic Attention Tokens (BAT) will lower the price of Ethereum if there are more Ethereum tokens in the pool. And it will increase the price of BAT if there are fewer BATs in the pool.
Uniswap V3 was launched in 2021, introducing the concept of concentrated liquidity. This concept allows liquidity providers to earn higher returns on their initial capital by selecting a price range to allocate their capital. Another improvement to V3 is that it runs on the Optimistic Ethereum network. This allows it to process transactions faster and reduce transaction fees. (BMJ Rating: 4.5)
Ethereum Name Service
Number of Transactions: 1.68m
Transaction Value: $10.3m
Avg. Transaction Fee: $9.38
Number of users: 406k
Ethereum Name Service is a naming system that allows users to convert long crypto addresses into simple domain names. This computer protocol runs on the Ethereum blockchain and solves the problem faced in the early days of the internet. Back then, if a user wanted to open a website, they would have to type in the full IP address of the website. This created a problem because IP addresses are long and difficult to memorize, just like crypto addresses. To solve this problem, the Domain Name System (DNS) was developed in 1983. DNS turned long IP addresses into short memorizable addresses like bitcoinmarketjournal.com.
ENS was created to solve a similar problem on the blockchain. This naming system connects long crypto addresses to simple, human-friendly names. ENS allows users to create and manage domain names on the Ethereum blockchain. Crypto addresses are long machine-readable addresses that are almost impossible to memorize. Ethereum Name Service converts these addresses into simple human-readable addresses or nicknames. As a result, ENS reduces the possibility of errors when entering a recipient’s address.
This Ethereum project boasts more than a million registered names on its platform, with over four hundred thousand users. ENS names are decentralized domain names that can be traded on NFT trading platforms like OpenSea. (BMJ Rating: 4.5)
Number of Transactions: 446.66k
Transaction Value: $6.4m
Avg. Transaction Fee: $14.33
Number of users: 667k
Chainlink is a blockchain platform that allows smart contracts to access real-world data, thereby bridging the blockchain and the real world. Founded in 2017, this decentralized platform uses oracles to transfer off-chain data to the blockchain. This data can be weather, stock prices, or even sports game results. Using Chainlink, real-world data can be securely uploaded to the blockchain.
The platform uses a network of oracles to transfer information to decentralized applications. Oracles are software that connects off-chain data sources to on-chain smart contracts.
Without platforms like Chainlink, the blockchain has no way to access data outside its ecosystem. This innovation allows the blockchain to connect with the external environment.
Chainlink’s ERC20 token, LINK, rewards entities that provide smart contracts with truthful real-world data. These data providers are referred to as oracles. (BMJ Rating: 4.5)
Number of Transactions: 949.42k
Transaction Value: $8.8m
Avg. Transaction Fee: $14.95
Number of users: 585k
StrongBlock is a blockchain platform that allows users to build blockchains without prior knowledge of blockchain technology. This platform uses a node as a service (NaaS) system to simplify the process of creating blockchain nodes.
It introduces a new way to operate blockchain networks that do not require much effort or knowledge of blockchain technicalities. With this platform, anyone can launch a blockchain node whenever they want. The StrongBlock platform does all the heavy lifting involved in creating a node. It also maintains and updates the blockchain nodes for its users.
StrongBlock issues an ERC20 token called STRONG. This token runs on the Ethereum network and was launched in 2020. StrongBlock also runs a governance protocol that allows STRONG token holders to vote for changes to the protocol.
StrongBlock’s goal is to increase blockchain participation by making the process easier and faster. The platform currently boasts over 500k users. (BMJ Rating: 4.5)
Number of Transactions: 6.33m
Transaction Value: $21m
Avg. Transaction Fee: $3.18
Number of users: 4m
Tether is a decentralized platform that issues stablecoins, which are cryptos pegged to stable assets to reduce volatility. The most popular stablecoin on the Tether platform is USDT, a stablecoin that is pegged to the United States dollar. USDT has established itself as the largest stablecoin by market cap, ranking third on the list. This has made it a go-to for investors looking to protect their money from the volatility of most altcoins.
It has become one of the most recognized stablecoins on the market. Tether launched in 2014, and it operates out of Hong Kong. The main goal of the Tether stablecoin is to allow users to trade fiat currencies on the blockchain. US dollars back tether USDT tokens. This money is collateral, allowing users to exchange their USDT for US dollars seamlessly. (BMJ Rating: 4.0)
Number of Transactions: 510.43k
Transaction Value: $9.1m
Avg. Transaction Fee: $17.04
Number of users: 1m
1inch is a decentralized exchange headquartered in Grand Cayman. It compares token prices across decentralized exchanges to discover the best exchange rate for its users. This DeFi aggregation platform drastically reduces the time users spend browsing for the cheapest rates. It uses an algorithm to analyze other DEXs and offer the best prices in the market.
1inch divides its users’ crypto funds and swaps them on exchanges like Uniswap to ensure they receive the best rates. The platform’s algorithm creates the best exchange routes possible for its users, making it quite popular amongst crypto holders.
1inch V4 is the fourth version of the 1inch exchange platform. This version allows users to trade altcoins at a much lower fee because of the improvements made to the platform. V4 also added 19 new tokens to the 1inch platform. (BMJ Rating: 4.0)
Number of Transactions: 923.74k
Transaction Value: $8.8m
Avg. Transaction Fee: $9.09
Number of users: 1k
Ethichub is a peer-to-peer marketplace built on the Ethereum blockchain. The Madrid-based crowdlending platform was launched in 2017 and has acquired over a thousand active users. Ethichub uses blockchain technology to connect investors who want to make a profit while making a positive impact on farmers who cannot access bank loans. It also uses blockchain technology to process transactions between lenders and borrowers. Ethichub uses smart contracts to secure transactions for both parties. The platform has processed almost a million transactions.
With this blockchain-based platform, investors can make up to 8% annual interest on their investments. Ethichub hopes to bridge the gap between unbanked farmers and financial loans. Ethichub’s native token is Ethix, an Ethereum-based token that secures investments made on the platform. (BMJ Rating: 4.0)
Number of Transactions: 2.00m
Transaction Value: $7.3m
Avg. Transaction Fee: $0.19
Number of users: 1.3m
San Francisco-based Zeroex (or 0x) is a decentralized exchange that allows users to exchange ERC20 tokens. It was launched in 2016, and since then, it has acquired over 1.3 million users. Like other decentralized exchanges, this platform does not rely on a third party to process transactions. Instead, it uses Ethereum smart contracts.
Zeroex issues an ERC20 token known as ZXR used to vote for improvements to the Zeroex protocol. ZXR is also used to pay entities that maintain the Zeroex order books. These entities are called relayers.
Zeroex launched the ZXR token in 2017, a year after the exchange platform went live.
ZRX is available on several exchanges like Binance and Coinbase. With a transaction value of $7.3m, Zeroex is one of the leading decentralized exchanges running on the Ethereum blockchain. (BMJ Rating: 4.0)
Number of Transactions: 163.18k
Transaction Value: $73.4m
Avg. Transaction Fee: $449.75
Number of users: 27k
Otherdeed is a collection of NFTs built on the Ethereum network. They allow holders to redeem land in Otherside, an interactive and immersive metaverse game world. Otherside allows users to create characters and buy plots of land within the virtual world. Otherdeeds are like regular land deeds, only for a virtual world. This land can be bought and sold just like in the real world.
Otherdeeds are issued by Yuga Labs, the same company that manages Bored Ape Yacht Club, a collection of NFTs also built on the Ethereum network. Like Bored Ape NFTs, Otherdeeds can be traded on OpenSea.
Otherdeed launched in 2022 and is a collection of 100,000 parcels of land. However, only 55,000 parcels can be bought. The remaining 45,000 parcels are given to partners and employees of Yuga Labs and holders of the Bored Ape NFT. (BMJ Rating: 3.5)
How many projects are building on Ethereum?
There are currently thousands of projects built on the Ethereum blockchain, and the number continues to increase as developers discover new ways to solve blockchain-related problems.
The Ethereum blockchain supports over 200 Decentralized Finance (DeFi) projects, more than any blockchain. It also supports several decentralized marketplaces, gaming, social networks, and exchange platforms.
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