Speculations and hype are the two critical elements in the crypto market that cause cryptocurrencies to rally. However, they do not work for long-term growth, which needs a solid foundation and tangible use cases. Therefore, only Collateral Network (COLT), which has seen a surge of 40% in price to $0.014 in stage 2 of the presale, and Ethereum (ETH) have remained bullish, while The Protocol (THE) is facing a threat to its existence.
The Protocol (THE) fails to attract users
The crypto market has witnessed a flurry of meme coins in recent months, and The Protocol (THE) is one of them. According to GenX Analytics’ recent data, The Protocol is one of the most secure meme coins in the industry, which is currently in the 7th position.
However, The Protocol has failed to attract users and investors due to the lack of visible and tangible use cases. As a result, the price movement of The Protocol (THE) has been southward for the past many weeks.
The market value of The Protocol has declined by 13% in the last week. It is down by 10% on the monthly price chart. Thus, THE token is currently trading at $0.001278.
Ethereum (ETH) social dominance grows
Ethereum is set to launch the Shanghai Upgrade, and the crypto community has buckled up for the event. The upgrade, also known as ‘Shapella,’ is a major milestone for the Ethereum (ETH) blockchain since its ‘Merge’ in September last year.
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Hence, Ethereum has seen a massive increase in social metrics. According to the latest data by LunarCrush, the Ethereum (ETH) social mentions have shot up by 50% in the last week. Besides, the bullish sentiment for Ethereum has surged by 57% during the same period.
These positive sentiments have helped the price of Ethereum jump by 30% in the past 30 days. Currently, ETH is trading at $1,998.53.
Collateral Network (COLT) outpaces other cryptos in growth rate
Collateral Network, an ingenious Web3 platform, has simplified obtaining a loan. Collateral Network (COLT) turns your tangible assets into non-fungible tokens (NFTs) and makes them available to multiple lenders intending to fund loans for borrowers against their assets.
Borrowers just need to send their physical assets to Collateral Network, which mints non-fungible tokens which will represent them. For lenders to invest their funds, Collateral Network (COLT) fractionalizes the NFTs into equally valuable fractions so lenders can buy as many as they want in exchange for a fixed interest rate paid out weekly.
Once borrowers repay their loan amount and interest, Collateral Network sends their assets back to their addresses in their original condition. Thus, the platform enables people to obtain loans from their tangible assets without selling them.
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The platform’s ecosystem consists of three elements. The first one is the Marketplace, where Collateral Network (COLT) helps borrowers, and lenders, connect to borrow against physical assets. The second aspect is Crowdlending, which empowers lenders to grant loans to borrowers at a fixed interest rate, thus becoming their own banks. The third element is Auctions, where the platform sells distressed assets to recover the lenders’ funds if a borrower defaults on their loans.
The ecosystem of the Collateral Network is fueled by COLT tokens. COLT holders will have voting rights on key decisions, staking rewards, access to private auctions, and discounts on transaction fees. Presale COLT holders will also earn access to the VIP members club. Hence, COLT tokens, currently available at $0.014 during the second presale stage, are projected to grow by 3500% over the next few months.
