What happened
Today marks yet another impressive day for individual altcoins in the cryptocurrency market. Despite the crypto market being broadly down by approximately 0.3% at the time of writing, there are a few tokens that are absolutely exploding higher today.
As of 9:45 a.m. ET, Internet Computer (ICP 0.37%), Near Protocol (NEAR +2.44%), and Fantom (FTM +4.42%) have rocketed 19.8%, 16.2%, and 14% higher, respectively.
Near Protocol and Fantom are burgeoning layer-1 networks developers are seeking out for new projects. Layer-1 networks are "base" blockchain networks upon which applications and use cases are developed. Ethereum remains the market leader in this area. However, last year, developers increasingly sought out competing layer-1 networks such as Solana, Avalanche, and Terra. This trend appears to be spilling over into smaller, higher-growth layer-1 networks at the moment.
In the case of Internet Computer, investors appear to like the Web3 angle with this cloud computing/internet-focused crypto network. Internet Computer powers what investors hope will be a decentralized cloud computing future.
Image source: Getty Images.
So what
These three tokens share a key similarity, in that each cryptocurrency powers blockchain networks so investors see real-world utility creation. Indeed, it appears many investors have moved past the idea of cryptocurrencies or blockchain networks as a store of value, or a means of transferring money. Rather, investors want to see that these blockchain networks can provide real, tangible value for end users.
In the case of Internet Computer, Near Protocol, and Fantom, it's clear that these networks are still in their early stages of development. Many things need to go right before these networks really take off. However, fortune favors the bold, and investors looking for the next winner in the race for utility-focused solutions appear to want to get in on the ground floor right now.
Now what
Each of these three tokens is one of the top 30 cryptocurrencies by market capitalization. That's impressive in its own right. However, in order for investors to see the "Ethereum-like" growth many expect from these tokens, continued outsize growth will need to occur. These tokens don't have the track record to support that thesis yet.
That said, they are on my watch list now. The market is factoring in some impressive future growth with these networks. Should more progress be made, these tokens could find their way onto my buy list in 2022.
