Should you invest in Waves crypto in 2023?
Waves crypto, like several projects that joined the blockchain-powered economy over the past five years, has contributed significantly to the decentralized finance (DeFi) and non-fungible token (NFT) sectors of the industry.
While the project has seen millions of dollars in total value locked in its decentralized applications (DApps) and sales from digital arts stored on its blockchain, should you spend time on Waves crypto at a time when the market looks like it is on a downtrend?
What is Waves crypto?
Waves is the blockchain and WAVES is the native asset behind the blockchain project.
Founded in 2016 by Ukrainian-born Sasha Ivanov, a technology entrepreneur who helped create platforms such as indexing site Cooleindex and defunct-instant exchange Coinomat, the purpose of the platform is to allow stakeholders of the virtual currency market to create and launch custom crypto tokens.
The stakeholders are not necessarily computer scientists or blockchain developers but anyone interested in creating and trading cryptocurrencies.
This is because Waves was designed in a way where there is little need for a user to have extensive knowledge about smart contract programming.
WAVES is a crypto coin that maintains and operates the network. It also plays an integral role in the creation of custom tokens.
Like, ether (ETH), bitcoin (BTC), and other crypto assets, it also serves a function as the primary cryptocurrency used to pay for transaction fees. With an insight into the project, what pros and cons should you consider before risking money on the cryptocurrency?
Pros of buying Waves crypto
Supported by DApps – In 2018, Waves Mainnet saw the addition of smart contract functionality, which enabled the building of DApps by third parties. This has led to the creation of DApps such as Vires Finance (lending), Neutrino (Index), WX Network (exchange), Pluto (reserve currency), Pepe Team sWAVES (liquid staking), and Swop (exchange). According to the project’s official website, these DApps have contributed to more than $200 million in value locked with Waves processing at least 23,000 daily transactions, and all-time transactions above 260 million. With other areas in DeFi, such as insurance and yield aggregation, yet to be triggered by developers contributing to the development of the platform's ecosystem, the addition of more competitive applications with real-world use cases could impact the price of WAVES positively in the not-too-distant future.
Supported by a strong NFT community – The digital collectibles market remains the most profitable for most traders in 2023. As of 6 June, 2023, it ranks 20th on the biggest NFT blockchains by all-time sales volume with approximately $24 million, data from aggregator CryptoSlam showed. While this value is relatively lower than competing chains such as Ethereum, Ronin, Solana, Flow, and Avalanche, among others, the Waves Duck sale became the highest-selling NFT outside of Ethereum. In April 2021, the NFT sold for $1 million and, at the time, beat sales from most digital art carved out of the NBA in Top Shots (housed on Flow). Many digital assets benefit from positive news about the NFTs housed in their respective ecosystems, and the native currency will be no different.
Supported by Enterprise – In 2019, Waves Enterprise was marketed by the development team. Unlike Waves which is tailored to the needs and interests of a decentralized world, Enterprise is primarily focused on institutions. Combining public and private networks, this platform ensures reliability, scalability, confidentiality, data immutability, and high throughput solutions. Enterprise provides deployment, consulting, and support services. Some of the use cases of Enterprise include employee motivation programs (human resource), digital lawyer of the year awards (e-voting), and cash pooling (liquidity, treasuring, and finance). Due to the numerous scam incidents that have mired the blockchain industry, having real-world use by institutions bodes well for the entire project. The effect is positive for traders associated with the currency who can see the possibilities of the chain reflected in the activities of real institutions.
Highly accessible – One of the primary factors to look out for is the accessibility of a cryptocurrency. Without it being available to millions of traders, liquidity (trading volume) needed to push the coin beyond the price you bought it to make gains will be lacking. As of 10:00 UTC on 6 June, 2023, the coin was supported by more than 40 exchanges and was available in over 90 markets.
Cons of buying Waves crypto
- Infinite competition – There are around 25,500 cryptocurrencies on the market. There are several smart contracts-backed blockchain technologies in the market as well, thanks to the success of Ethereum. All these platforms are fighting for the same number of developers to add more DApps to their platforms and investors to pour liquidity into their tokens.
As a result, consider the risks against the rewards before buying the crypto. If the rewards of investing in Waves crypto outpace the potential risks of losing your hard-earned money, you can consider adding the coin to your investment portfolio.
But beyond all things, do your own research before throwing money behind any digital currency due to its volatility.
Author: Raphael Minter
Raphael Minter/ Albert Zuhnden (preferred pen name) is a crypto finance writer, data miner, and fundamental analyst. Raphael has written hundreds of articles about centralized and decentralized financial instruments such as precious metals, commodities, stocks, and cryptocurrencies. He broke into digital finance in 2016 and believes digital assets and blockchain technology is the future of finance.