In the long term, over 90% of crypto projects Fail. If you are a long-term holder, your job is to figure out which projects will survive.
Additionally, the largest cryptocurrencies are trading more than 50% below their all-time highs (ATHs). As such, investors are looking for long-term crypto projects that can be profitable in the next few years.
Here are some of theprojects that will likely survive the market for a long time.
There is a reason we are long-term bullish on ETH. The issuance rate for ETH since the Merge is at -0.009% in a bear market. In comparison, Bitcoin has an issuance rate of 1.716%, and ETH, before the Merge, had an issuance rate of 3.5%.
This is a significant reduction by any metric and proves that ETH can be deflationary with usage.
Additionally, with the success of L2 Networks such as Optimism and Arbitrum and the launches of Zk networks, Ethereum is one of the major contenders for being the consensus layer for other blockchains to build upon.
Lastly, Ethereum has the strongest network effects of any blockchain, with a developer community that dwarfs other L1s.
Many trends come and go, but infrastructure will always be needed. There has not been one protocol with infrastructure services as much as Chainlink. While many consider Chainlink as an Oracle provider, that ignores many of their other products powered by LINK.
Products such as VRF, DECO, Chainlink Automation, and CCIP are all services that are integral to Blockchain Applications. Thus, I think it is more fitting to think of Chainlink as an infrastructure service powered by the LINK token.
Along with this, the introduction of Chainlink 2.0 will give utility to LINK, which solves major utility criticisms for the LINK token and the connections that Chainlink has built with major web2 companies. This puts Chainlink in place to bring the commercialization of web3.
The Frax Finance developer team stands out in web3. No matter the market, the team has been shipping and established its ecosystem with FraxSwap, Fraxlend, FPI, and frxETH.
As such, these products will support the demand for $FRAX, which supports the price of $FXS. Revenue generated from Frax products will be for buying back FXS, distributed to veFXS holders.
Along with this, Frax is also one of the largest holders of CRV and CVX and has used that spot to incentivize FraxBP to take over the 3CRV pools.
Curve Finance has been one of the hallmarks of Stableswaps since the early days of DeFi, and I think it has the community, resources, and attention to survive in the long term.
While there is healthy competition with protocols like Balancer, no other platform has innovated and attracted as much TVL as Curve. The upcoming introduction of crvUSD could also drive more interest and TVL, which could support the demand for $CRV and $CVX.
Bottomline
Long-term investing in cryptos can be a safer way for investors to avoid the regular price movements and volatility observed in the markets.
However, before venturing into the projects, do your own research. This is not financial advice.
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