The cryptocurrency marketplace revealed a great display throughout 2021. Experts expected it to continue into 2022. Unfortunately, there has been a crash. In fact, experts consider it to be one of the worst crashes in the history of crypto falls. A major reason for the crash has been the unfriendly atmosphere created by changing geopolitical and economic conditions across the globe. Secondly, cryptocurrency were due for a correction after the superb performance in 2021. Of course, some coins have managed to recover, and are not doing too badly. However, three coins suffered tremendously. Therefore, investors are staying away from them. For Crypto trading related tips check our website Bitcoin smart
It is the altcoin of the Avalanche network. It had progressed well in earlier years. In fact, it was all set to take its place amongst the 10 best crypto assets. However, the crash has destroyed this dream. It has already lost almost 50% of its value. It does not help that it is taking time to recover from the adverse effects of the crash, unlike other major coins. In fact, investors seem to have lost faith in it!
Avalanche (AVAX) had gained popularity, because it proved to be a blockchain and cryptocurrency platform that rivaled the Ethereum platform. Furthermore, the platform used smart contracts to get its various blockchain projects going.
The Avalanche blockchain is capable of processing 4,500 transactions every second. It is versatile, affordable, fast, secure, and accessible.
It is the token of PancakeSwap, which is a decentralized cryptocurrency exchange. It is suitable for swapping BEP-20 tokens.
The model that PancakeSwap prefers is an AMM one. AMM stands for automated market maker. It means that the investor may undertake trading of digital assets on this platform. However, the trading takes place against a liquidity pool, and not against someone.
Users deposit their funds into the liquidity pool. In return, they receive LP or liquidity provider tokens. An investor may use the tokens to claim his/her share, as well as, some amount in trading fees. Thus, the PancakeSwap platform permits trading in tokens, addition of liquidity, and garnering of rewards.
With so much in its favor, PancakeSwap had become a favorite amongst investors. It had even done quite well, before the crash occurred in May 2022. However, the fall has been great, going beyond 45%. Regardless, investors are hoping that it will pick up soon.
This coin relates to THORChain. It seems to have suffered the most, in comparison with the other two coins. It has already lost almost 50% of its value, and investors do not expect it to recover any time soon.
What was so special about THORChain?
It refers to an independent blockchain, built upon groundbreaking technology. Using the AMM model, it offers RUNE, its native token, as a base swap pair. Investors may navigate diverse asset pools, using RUNE. However, RUNE is not too overt in its functioning. Then again, it rewards people staking or depositing assets in the liquidity pool. They are the liquidity providers or LPs. The rewards are offered in the form of trading fees, albeit just a portion of them. Auto compounding is a feature of liquidity positions. Therefore, there need be no conscious effort by any investor, to claim rewards.
THORChain permits decentralized swaps over a blockchain that it supports. It is completely transparent in its functioning. It is possible to view the nodes involved in the network, the vaults that the blockchain hosts, and the entire value (locked) of the network.
As the network’s value, which is locked within it, increases, so does the value of RUNE, THORChain’s native token.
There is another unique feature of THORChain. It takes recourse to a specific consensus mechanism, the Tendermint Byzantine Fault Tolerance (BFT). Another consensus mechanism is Proof-of-Stake (PoS). PoS is meant to keep Sybil attackers at bay. Sybil attacks are visible on peer-to-peer platforms. The attacker ensures that multiple identities become active simultaneously, giving the impression that every identity is genuine. Every account has even a legitimate IP address connected to it.
The PoS consensus mechanism permits validators to use RUNE tokens to operate nodes on the network, and give validity to transactions. THORChain permits the delegation of tokens to these validators. These token holders are eligible for rewards.