What are the best cryptocurrencies according to Outlier Venture

First, the report Blockchain Development Trends was submitted by Outlier Ventures. This is an England-based company that has been working in the rapidly evolving metaverse world since 2014. Each year, the teams write a report about key indicators and trends in the development of blockchains and cryptocurrencies. As below with the analysis of the entire cryptocurrency market regarding the year 2021.

In this article we will focus on the edition published for the year 2022, where the company explains that it is looking into the basic infrastructures of cryptocurrencies. The basic decentralized protocols like Ethereum make it possible to host the applications and it is there according to the teams that the relevant information is hidden. Core development analysis is important to provide transparency and to more easily understand the progress and innovation of cryptographic protocols.

It is important to know how to be in an open-source environment compared to closed environments and hybrid models of the traditional world. Web3 is a new, growing area. It is not easy to follow all the new projects or even to have a global view of the structure of the cryptocurrency industry. This report sheds light on the developments, innovations and main indicators concerning the basic infrastructures of decentralized blockchains.

The data collected

It is important to note that this entire report is based on the top 50 protocols. Based on cryptocurrency capitalization or total value locked (TVL) for basic blockchain projects and decentralized finance protocols. The two indicators were selected via a snapshot taken on 1er January 2022 via Coinmarketcap for capitalization and Defipulse for TVL.

In a second step, the analyzes of the different protocols will be compared thanks to the commitments published and carried out on each project. It is the representation of the category ” commits » available within each project on the Github platform. The commits form the pillars of a project timeline. They are created to show the progress of a project over time.

Compared to last year, the number of commits remained stable. It’s about 550,000 commits carried out over the entire year between the different blockchains for the development of Web3. All crypto projects are compared to the number of commits produced and published during the year 2021.

Total Commits Top 50 Blockchain Cryptocurrency

1. Cryptocurrency Protocol

TOP 10 cryptocurrencies

This category represents the best protocols in terms of commits published over the previous year. In first position we find the Cardano blockchain with 926 CPM (the monthly average of commits). There is a high number of commits focused on project coordination and not necessarily on infrastructure development.

In second place ranks Polkadot, with 822CPM an 11% difference with Cardano. Ethereum ranks third and continues to grow with 692CPM, a similar average to last year. We find the Solana blockchain in fourth position with a total of 472CPM and an increase of more than 96% compared to last year.

After these four cryptocurrencies, we find in the top 10 projects like Flow, Cosmos, Iota and Filecoin.

This category represents various fields of activity such as basic infrastructures to host decentralized applications, Ethereum, Cardano or Solana. Blockchains at the service of interoperability with Cosmos and Polkadot. Flow represents the world of NFTs, Filecoin the decentralized storage and Iota, the Internet of Things.

TOP5 Blockchain Commits

The challengers

This category lists the blockchains that have increased the most in comparison to the number of commits achieved over the year 2020 compared to the year 2021. There is a growing interest in decentralized storage solutions with the presence of Arweave (AR) going from 785 CPY to 2200 CPY, an increase of more than 180%.

In this category we find blockchains such as Avalanche, Terra, Oasis Network, Cronos from Crypto.com, Zcash, Theta Network or even Chainlink. Many sectors complete the top 10 blockchains. We find oracles, personal data, decentralized streaming, private blockchains and the first centralized exchange.

Challenger basic protocol
Challengers – Basic Protocol

Important note: the report also mentions the blockchains that achieve the least commits compared to last year. In this category we find blockchains like Harmony, Tron, BitTorrent, Bitcoin Cash, THORchain, Dogecoin or Axie Infinity. All of these projects are losing ground against the robust competitors mentioned above.

To close this analysis about basic blockchains, some of them maintain a stable level of development compared to last year. In this category we see the appearance of blockchains such as Bitcoin (14,000CPY), Ethereum (36,000CPY) and Elrond (17,000CPY). Other infrastructures like Stellar, Fantom, Basic Attention Token, Celo, Mina are part of this asset class.

Developers

In the basic blockchain category, the number of developers has increased significantly. An increase of more than 20% from 6,200 to 7,500 for the top 50 protocols. No change in the top 5, the most represented blockchains are Cardano, Ethereum, Polkadot and Solana.

Basic protocol and cryptocurrency developers

Solana, Avalanche and Terra confirm, the number of developers is increasing sharply within these protocols. A newcomer, The Sandbox is showing strong growth in the number of developers on board (+112%). In this category we note the appearance of projects such as Helium or Internet Computer. Blockchains in decline are represented by the same blockchains as mentioned above with the appearance of the EOS and Klaytn projects. Since in general the commits are issued by the developers. If the number of developers decreases, then the number of is impacted in the same way.

2. Decentralized finance project

Let’s move on this time to the analysis of the protocols of decentralized finance. First of all, we note the evolution of the number of commits achieved in comparison between 2021 and 2020. From 101,000 to 125,000 respectively, which represents an increase of more than 20%.

Total DeFi Commits

TOP 10 cryptocurrencies

In the top 5 major decentralized finance projects in number of commits published and produced include: Synthetix, Maker, SushiSwap, Balancer and KEEP Network. Maker takes the first position with 9,500 CPM, followed by Synthetix with almost 9,000 CPM achieved and SushiSwap in third position with 7,500 CPM. In the top 10 we find applications like Uniswap, Bancor, Loopring and Yearn Finance.

TOP5 DeFi cryptocurrency commits

The challengers

In the category of DeFi challengers: we find Loopring in good shape with an increase of more than 278% from the year 2020 to the year 2021 concerning the increase in the total number of commits. Followed by projects like Idle Finance, Rari Capital or Aave which more than double their achievements of commits compared to the previous year. Projects like Set Protocol, InstaDApp and Tornado Cash are popping up in this category associated with decentralized finance.

challengers challenge

As for the previous category, the report mentions projects that are losing momentum through the publication of commits over the two years. The top 5 are represented by Enzyme Finance, Opyn, dYdX, KEEP Network and Metronome. We also find in this category a project like Compound, RenVM and Sablier. Importantly, we find Maker losing about 20% compared to last year. While he remains the first of the Top 10 in terms of commits made. Can we speak of a loss of speed on the side of the DeFi sector? (It should be taken into consideration that this analysis is based exclusively on DeFi within Ethereum. She does not represent the overall decentralized finance of the cryptocurrency market).

Developers

In this sector, we still note an increase of approximately 43% in the number of developers to work within decentralized finance projects. A clear increase for all projects and development work within this sector.

Challenge Developers

The top 5 is initially made up of Maker but which loses around 20% of its developer base. In second position we find the Synthetix project whose number of developers has increased by 50%. In third position, Compound the king of compound interest reduced its initial position of 2020 by around 16%. Yearn Finance in fourth position meanwhile increased drastically with the number of developers jumping by almost 200% over one year. And finally, Balancer doubled its workforce.

The projects that are increasing the most in terms of developers are represented by: Aave (+167%), InstaDApp (+132%) Set Protocol (+105%) and Uniswap (+106%). As stated previously, declining protocols are represented by Maker, Compound, KEEP Network, Enzyme Finance and dYdX.

Conclusion

A very interesting report that highlights the most important basic blockchains. As well as a relevant analysis of the decentralized finance sector. Some blockchains could not find their places in this statement. Like Near Protocol, Algorand, Ethereum Classic, Decentraland, Enjin, Binance Chain, Polygon, Tezos or even VeChain. Of course, these are not the only blockchains that are not mentioned in this report. This can be explained in relation to the competition which resides in the quality of the infrastructures and networks available within the cryptocurrency markets.

There is a strong development around hosting platforms for decentralized applications with Cardano, Ethereum and Solana. Developers are increasingly present in the cryptocurrency sector. A craze that remains stable on basic blockchains. When enthusiasm increases on the side of decentralized finance depending on the number of commits realized. We also note a slowdown in flagship projects such as Compound, Maker like Synthetix or Year Finance for example.

It should also be noted that the gaming sector is rather underrepresented throughout this study. Outlier Ventures provides a report each year. It deals with development and performance indicators concerning the cryptocurrency market.

Outlier Ventures also offers a report on the metaverse industry.

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Emile Stantina

“Stan – “Chancellor on brink of second bailout for banks” The solitary man thinks alone and creates new values ​​for the community”

We want to give thanks to the author of this write-up for this outstanding web content

What are the best cryptocurrencies according to Outlier Venture


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