In this article, we will look at 5 cryptocurrencies Redditors are buying after the Merge. If you want to read our detailed discussion of the Merge and its possible benefits and risks, you can take a look at Redditors are Buying These 10 Cryptocurrencies After the Merge.
5. Ethereum Classic (ETC)
Market Cap as of August 31: $4.5 Billion
Ethereum Classic is a blockchain-based distributed computing platform that provides smart contract functionalities. The Ethereum Classic’s native token is ETC. Ethereum was forked off of Ethereum Classic back in 2016 when a hack caused the DAO to lose roughly $50 million. The Ethereum Classic network achieves consensus via a proof-of-work consensus mechanism. As of August 31, Ethereum Classic has a market cap of roughly $4.5 billion and over 136 million ETC in circulating supply.
Ethereum Classic has come to the attention of Redditors as the date of the Merge approaches. For Redditors, Ethereum Classic is the new Ethereum, as it retains the original back-end functionalities of the original Ethereum network. On July 27, leading Chinese crypto mining company Bitmain invested $10 million to further the development of the Ethereum Classic ecosystem.
4. Uniswap (UNI)
Market Cap as of August 31: $4.6 Billion
Uniswap is a decentralized cryptocurrency exchange and UNI is the native currency of the network. The Uniswap exchange differs from other centralized exchanges as it makes use of liquidity pools for market making, rather than traditional market making. Liquidity providers are tasked with keeping the liquidity pool flooded with assets to ensure the functioning of the network. Uniswap incentivizes liquidity providers by giving them a share of the fees charged to traders on the Uniswap network. As of August 31, Uniswap has a market cap of $4.6 billion and over 745.5 million UNI tokens in circulation.
Reddit is eyeing Uniswap as the Merge date draws closer. Uniswap can benefit from the Ethereum Merge as investors will make use of the platform to partake in liquidity staking for Ethereum, a service that is expected to gain popularity as Ethereum shifts to the proof-of-stake consensus mechanism.
3. Polygon (MATIC)
Market Cap as of August 31: $7 Billion
Polygon is a proof-of-stake blockchain network that uses a series of side-chains to validate transactions. With the main chain unoccupied, once transactions are validated a block can be readily added to the main chain, therefore promoting scalability and speed. Ethereum applications can also run on the Polygon blockchain network as the blockchain has its own Ethereum Virtual Machine. Polygon has a transaction speed of 65,000 transactions per second. As of August 31, Polygon has a market cap of roughly $7 billion and 8.68 billion MATIC tokens in circulation.
Redditors see upside for Polygon after the Merge due to Ethereum’s dependence on the network’s scaling capabilities. While the Merge will reduce Ethereum’s carbon footprint and make it more energy efficient, the gas fees are expected to remain roughly the same. This is why individuals staking Ethereum will flock to the Polygon network to utilize its scaling solutions.
2. Polkadot (DOT)
Market Cap as of August 31: $7.88 Billion
Polkadot is a layer-0 proof-of-stake blockchain platform that solves the interoperability problem of blockchains by making use of a relay chain and a series of parachains. The Polkadot network serves as the hub for other blockchains to come and connect with each other. Parachains serve as the communicators between other blockchains and Polkadot’s relay chain. By using parachains and one central relay chain, Polkadot allows for the interconnectivity of blockchains and resolves conflicts among their use cases.
Dot is the native token of the network. As of August 31, Polkadot has a market cap of roughly $7.88 billion and over 1 billion Dot coins in circulation. The Reddit community sees long-term potential in Polkadot and explosive potential right after the Merge. As Ethereum merges into a proof-of-stake model, Redditors are favoring mining Polkadot over other PoW altcoins.
1. Cardano (ADA)
Market Cap as of August 31: $15.2 Billion
Cardano is a proof-of-stake cryptocurrency founded by Charles Hoskinson, one of the founding members and lead developers of Ethereum. Cardano makes use of epochs to validate transactions. Cardano can currently handle over 500 simple transactions per second and up to 10 smart contract transactions per second. The network’s native cryptocurrency is ADA. As of August 31, Cardano has a market cap of $15.2 billion and has roughly 33.7 billion ADA tokens in circulation.
Redditors are bullish on Cardano and plan on buying the cryptocurrency after the Merge. Charles Hoskinson has announced the Vasil hard fork will be taking place at roughly the same time as the Merge, and the Cardano mainnet will see four new improvements. The four new Cardano Improvement Proposals are namely the CIP-31: Reference Inputs, CIP-32: Inline Datums, CIP-33: Reference Scripts, and CIP-40: Collateral Outputs. The CIP-31 and CIP-33 are expected to reduce the transaction costs on the network.
You can also take a look at 10 Best Cryptocurrencies to Invest in According to Reddit and 10 Best Cryptocurrencies to Buy for Early Retirement.
