Polkadot projects with a lot of room for expansion. Polkadot's testnet is called Kusama. Kusama is similar to the Spanish Stallion in that it is built for speed and bold experimentation. Polkadots, on the other hand, are a gentler breed that is more stable and conservative.
Polkadot and Kusama are both general-purpose blockchains, which means they may be used to develop apps on top of them. Kusama's ecosystem is being built up in part through parachain auctions, which began this summer, whereas Polkadot's parachain auctions just started last month.
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Now, I'm little new to Kusama, but I was curious about its pricing performance over the last few years to see how it would perform in the future. Kusama was trading for as little as $1.20 per token as late as December 2019. You would have 516X your money if you had bought at the bottom and sold at the peak in March of this year.
Now, I'm not suggesting that you buy low and sell high because that's about as tough as winning the renowned German Innovation Award, but there's plenty of room for 100Xs and 200Xs on the path to 516X. Kusama's price performance over the last two years is being examined.
Projects starting on DOT and Kusama, in my opinion, might reap similar benefits. With a market cap of only $3 billion, I believe Kusama still has a lot of room for growth. It wouldn't surprise me if Kusama tokens traded for between $4,000 and $6,000 at some point.
RMRK Metaverse Token
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The Polkadot ecosystem's top Metaverse token is RMRK. By allowing NFTs to equip their own NFTs, they're helping to usher in a new era of NFTs. It reminds me of the Russian dolls that have NFTs within NFTs.
Now, I don't believe the Metaverse Bull Run is ended yet, thus I expect new price discovery to continue. RMRK has been absolutely burning up the market throughout November and into this month, saying no to No-Nut November. It went from $13 when we first covered it here to well then $66 now.
With a market cap of $500 million, I believe we still have room to expand and possibly compete with Decentraland in terms of market capitalization.
To get in early use a clever way
Another way to get big returns in the Polkadot ecosystem is to directly participate in parachain auctions. So, a parachain can be thought of as Polkadot's unique word for a blockchain within a blockchain.
As a result, the Polkadot and Kusama parachain auctions will both finish once all 100 spaces have been filled. When a project is awarded a Polkadot or Kusama parachain, it indicates it can begin developing on that chain.
Many of the projects that debut on Kusama or PolkaDot have sibling projects. So, even if the other project hasn't debuted yet, we can get a glimpse into its performance.
Moonriver Token
Moonriver, which won a Kusama parachain auction earlier this summer, was created by the same team that created Moonbeam, which recently won the second Polkadot parachain auction.
So, we've discussed Moonbeam before, but Moonriver is currently trading, so one technique I use to make gains in the Polkadot ecosystem is to wait for a huge market pullback so that I can obtain discounts on Kusama and Polkadot tokens that have already won parachains and are listed on exchanges.
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So I see Moonriver is presently on sale from its all-time high of approximately $490, and it wouldn't surprise me if Polkadot and Kusama's popularity continues to grow, it can reach $2500 a token, especially given that they have one of the most passionate communities in crypto and a really unique use case.
Moonriver has even been rumored to be a top ten token, which would allow for a 40X if that were to happen. One disadvantage I see here is that because Moonbeam is releasing on Polkadot and Moonriver is launching on Kusama, Moonbeam may outperform Moonriver.
However, I believe both will do well because they are created differently and developed for different purposes, although all of the tokens on this list are higher-risk tokens.
Parallel Finance Token
Then there's Parallel Finance, which is also competing in the Polkadot parachain race. Parallel Finance, like other Polkadot coins, offers a unique use case, and I could see getting in early here paying off handsomely.
Parallel Finance, in my opinion, has the best chance of winning a parachain auction. Now, investing in Parachains can be a great idea, but keep in mind that if you want to join in on the ground floor, you'll need to lock up your DOT tokens for two years.
But don't worry; if you don't want to lock up your DOT, you can always buy PARA or any other auction token on an exchange after the parachain begins.
Clover Finance
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Clover Finance is a Multi-chain compatible layer-1 blockchain. That's a lot of words in one sentence. It is comparable to moonbeam and moonriver in terms of use case, however, it concentrates largely on DeFi applications.
So, one of Clover's most notable features is their Multi-chain collected wallet, which allows users to store tokens from other chains such as Ethereum, Polkadot, and Polygon in a single location, which is critical. I can't wait for the day when we only have to carry one wallet.
They're also working on a decentralized finance app store that will allow users to browse a variety of dApps, derivatives, and loans that have been implemented on Clover. Clover Finance is still in the running for a parachain auction.
So, unless you want to wait for it to be listed on an exchange, you'll need to lock up a minimum of 5 DOT tokens for two years in order to participate.
Make sure to look at this
Here's a crucial point to remember. Tokenomics are different for each crowd loan auction. So, for example, Clover Finance's reward pool for parachain auctions is 200 million tokens out of a total supply of 1 billion, so 20% of the supply and also 28% of the tokens are distributed immediately upon parachain activation, and the other 72% is released over the next 23 months in a drip.
This means that if you lend Dot to vote on this project, you will receive 28 percent of the tokens immediately after the parachain is completed, and the remaining tokens will be released monthly.
Also Read: Is it Possible to Trade and Retire with Crypto Tax Free? Crypto Retirement Accounts
Kilt Token
Now, KILT was created to address a major issue that we are all aware of. It's the gathering and use of our personal information over the internet. When a centralized business, such as Facebook, holds your data, it can simply sell it to generate revenue, which is how Mark Zuckerberg became so wealthy that he bought an entire island in Hawaii.
They may target extremely exact ads to your feed because of this data. The KILT protocol intends to put data control back in the hands of its users. Donnie Baggs, the most well-known Polkadot influencer, just dropped several teasers on KILT yesterday.
He claimed he couldn't reveal the bank's name or the amount they paid for anything. But he said that's a big thing, and we'll just have to see how it goes.
You should know that data ownership in Europe differs significantly from that in North America or Asia. For years, they've had legislation in place to protect Internet users' privacy. For decades, we've been freeballing our data in the United States. Only for the Zucc to take a look at.
KILT has already started operating nodes on smart home meters in Germany - right now, no one knows, but there are KILT nodes running on smart meters in German houses - and it's a good medium to long-term hold, in my opinion.
This project blew up after it launched on Kusama, and it was particularly hard affected by the crypto crash in the last month, so now would be a good time to take a look.
Manta Network
Manta Network is a ready-to-use privacy network that is currently bidding on Polkadot parachain auctions. The technology is based on cutting-edge zero-knowledge cryptography. On-Chain transactions are not anonymous, to be sure.
This is a typical misunderstanding among crypto newbies, and it's also how Coffeezilla is able to figure out that kids aren't being saved. And, at the moment, most blockchains aren't concerned with privacy. Most developers in this field appear to be focused on DeFi and NFTs.
Manta now aspires to be the privacy chain for networks without a privacy layer, so they don't have to go through the trouble of creating one themselves, and holders don't have to worry about getting into boating accidents in order to prevent certain things.
MantaPay, which allows users to send crypto tokens discreetly, and Manta Dex, which allows users to swap tokens anonymously, are two of the network's most popular services.
As the crypto sector evolves, I believe there will be a continual desire for anonymity, particularly when crypto OnlyFans takes off. Joking aside, Imagine, supposing anyone could look at your credit and debit card statements and see exactly what you're buying.
It would most likely irritate you. Polkadot parachains are also being bid on by Manta Network. Calamari, their sister network, won the Kusama parachain earlier this summer.
Also Read: Which are the most undervalued Cryptocurrencies? 5 Most Undervalued Cryptocurrencies
Phala Network
Phala is a Privacy chain, just like Manta. But why do we need Phala since the Manta network will very certainly win a parachain as well? According to the co-founder of Manta, Phala and Manta have collaborated and are networks that complement rather than compete with one another.
Privacy swaps and lending will be available through Phala. If the bull market continues, I believe Phala will provide a good return. Phala may be traded on a few exchanges right now.
Astar Token
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Shiden's sister network, Astar, has won the Kusama parachain auction. It's similar to Moonbeam in that it adds Ethereum support to Polkadot, but there are several important distinctions to note.
Moonbeam is mainly focused on compatibility with the Ethereum virtual machine, but Astar allows developers to build on the Astar blockchain using a standard programming language called "WebAssembly." Astar is now a feasible investment in the Polkadot ecosystem, in my opinion.
Because it recently won a parachain auction, Astar will soon be tradable. Now, I do want to provide a word of warning. Be cautious about investing in any projects shortly after the exchange launches, as there may be a huge price correction in the beginning. Not usually, but there are situations when caution is required.
Buying a project that is on its way down, even if it is a good project, will leave you with a terrible taste in your mouth. Another option is to use dollar-cost averaging to avoid this. Instead of going all-in on day one, you may stretch out your purchases across a month, smoothing out some of the volatility.
Acala Token
Then there's Acala and its one-of-a-kind use case. Polkadot's DeFi hub, as it's been named. Acala allows developers complete access to Ethereum's top features as well as the Polkadot ecosystem's full potential.
Consider all the Ethereum-based dApps like Curve, Aave, and SushiSwap merged into a single hub. This is what Acala intends to achieve. Acala is a scalable, Ethereum-compatible, and DeFi-optimized layer-1 smart contract platform.
The team has now developed its own AMM exchange, decentralized stablecoin, AUSD, Liquid DOT Staking, and Ethereum compatible machine.
Liquid Staking allows people to stake any amount of DOT without having to lock up their assets, making it a viable alternative to self and exchange staking. And for a platform, this is something I've been thinking a lot about.
Making staking easy for the common investor fascinates me, and I believe it is conceivable to create some form of the liquidity pool to eliminate staking lockups and simply make it easier to use.
Closing Words
As you can see, I'm a big fan of Polkadot and Kusama projects because they provide access to new tokens with interesting use cases and established communities. It's almost like the ideal formula.