Key crypto takeaways
- Meme crypto Dogecoin has gained and lost tremendous value due to influencer-based market momentum
- Polygon brings utility to any project or user on the Ethereum network
- Axie Infinity’s AXS and SLP tokens are part of a play-to-earn gaming model
BELGIUM (CoinChapter.com) — The year 2021 has proven to be interesting for many different crypto assets.
Of course, an influencer a la Elon Musk may swing the price of Dogecoin in either direction by Tweeting random things. Still, other projects appreciate because they bring value to a community. Polygon, Axie Infinity, and Small Love Potion are just three examples of more useful crypto assets that don’t need influencers’ help.
Dogecoin Had A Good Run
Everyone who keeps tabs on cryptocurrencies will remember when one DOGE was worth $0.7 for a brief moment.
It is an exciting milestone for the meme crypto of the internet, although one that is entirely fueled by speculation. Triggering that speculation is Elon Musk, who seemingly orchestrates price surges by mentioning “Dogecoin” in any context.
Of course, it makes little sense to onlookers, but many people made good money, assuming they got out at the right time.
Unfortunately for those buying the top, there is a considerable downside to influencer-fueled crypto price surges.
They come crashing down violently and wipe out multiple support levels quickly. For DOGE, there was support at $0.5 before dipping to $0.35 and even going below $0.2. It now seems some stability exists near $0.2, depending on when Elon Musk decides to Tweet again.
Polygon (MATIC) Has Utility
The price appreciation of Polygon, or MATIC, is very different from the Dogecoin one.
It has nothing to do with influencers trying to make the market do their bidding. Instead, the team has built a viable solution for developers and users who want to avoid Ethereum’s network congestion issues and high transaction fees. Although Ethereum may address those drawbacks in the ETH 2.0 upgrade, that is still months, if not a year or more away.
The Polygon blockchain attracts many projects, primarily those in the DeFi space.
Everyone wants to avoid high gas fees and potential transaction delays. Polygon checks those requirements, as is visible by crypto projects like Aave, SushiSwap, and others, enabling support for this solution. However, it is an ecosystem with utility, and MATIC is required to pay for transaction fees.
The crypto is suited for staking too and has governance rights, which all contribute to its overall market performance. In 2021, its value has gone from $0.01 to $2.15. It currently trades at $1.05 and shows signs of a new uptrend taking shape.
Dogecoin has none of these projects exploring its blockchain, as it is not designed for anything other than DOGE.
Crypto Duo: Axie Infinity And Small Love Potion
The blockchain gaming industry is making many headlines lately, primarily due to Axie Infinity.
Their concept of play-to-earn has given rise to a game that many people enjoy playing. It requires three Axies to play, which one can buy from the marketplace or acquire through a scholarship. Axies are one way of potentially making money with the game.
Crypto users are in complete control of their in-game assets. That aspect brings more value to Axie Infinity and its AXS token, which is used to buy land, farm, or breed Axies. As a result, AXS crypto has been intensely bullish this year, as its price went from $0.73 on January 1st to $49.2 today.
A substantial growth without any involvement from Elon Musk, who remains focused on Dogecoin, for now.
The second option is the Small Love Potion or SLP.
These are earned when playing the game and can be used to breed new Axies. However, acquiring these potions in sufficient quantities can be time-consuming, hence why players may be inclined to buy them off the marketplaces.
It is a secondary layer to the play-to-earn mechanic, as SLP has utility and value to players. In addition, SLP has an intriguing price curve, with values ranging from $0.08 to $0.35 and hitting all weights in between. Overall, it shows a strong uptrend due to continuous demand from Axie Infinity players.
Building a blockchain game with a marketplace is only the first step.
Bringing value to that ecosystem is something else. Axie Infinity has a strong community of players, which gives the AXS and SLP assets a certain financial appeal. It is a very different approach from Dogecoin, which seemingly can only gain value if an influencer Tweets about it.
That doesn’t mean AXS, SLP, and MATIC will not go down in value. These are still volatile crypto assets, but they all serve a specific purpose.