2 Cryptocurrencies That Could Surge In The Wake Of The FTX Meltdown

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Last Updated November 28th 2022
5 Min Read

The crypto market was affected by a new crypto crash, this time caused by the stunning implosion of FTX - one of the biggest and most potent crypto exchanges. Many experts predicted a massive drop in all crucial currencies, and so far, the market has indeed seen a considerable downturn.

The fallout of the crash may cause global regulators to tighten the screws on trading cryptos which could have a further detrimental effect on the market. With all this going on, now may be the perfect time to invest in sustainable and safe cryptos, which have promising potential for significant growth in the future. 

The fall of FTX has shed light on the value of decentralized exchanges, such as Uniswap and Sushiswap. So here are the two cryptocurrencies that could be in the wake of the FTX meltdown; UNI and SUSHI.

Uniswap (UNI) 

Uniswap is a decentralized exchange built on the Ethereum blockchain. (Decentralized exchanges (DEXs) let investors swap crypto without an account, which is quite unlike centralized exchanges like Coinbase, Binance, or FTX.)

The Uniswap platform transacts north of a billion dollars in cryptocurrency on a daily basis, and it is the most used decentralized exchange in the world.

The Uniswap token is an ERC-20 token, meaning that it uses Ethereum’s blockchain to process transactions instead of having its own network. Many cryptocurrencies use Ethereum’s blockchain, including most non-fungible tokens (NFTs). The main advantage of Ethereum over Bitcoin is its smart contract technology, which enables developers to make valuable protocols on the blockchain, such as Uniswap.

Essentially, Uniswap is just a bunch of smart contracts that work together to make a decentralized exchange. Since smart contracts are code uploaded to the blockchain, they have the same immutable, decentralized, and borderless capabilities as cryptocurrencies. Smart contracts can transfer money autonomously based on the parameters in the code, allowing for extremely efficient financial services.

Earlier, Uniswap launched UNI V3. The biggest upgrade in Uniswap V3 is called concentrated liquidity and Uniswap has the exclusive rights to use this function for the next two years, giving them a big advantage over its competitors. Concentrated liquidity uses non-fungible tokens (NFTs) to let investors set a specified range of prices to provide liquidity.

Volume on the Uniswap exchange soared in the wake of the FTX collapse. From Nov. 7 to Nov. 9, the exchange's trading volume surpassed $5 billion for three straight days, a new record. And on Nov. 14, Uniswap became the world's second-largest exchange by volume for trading Ethereum, surpassing the centralized exchange Coinbase. 

In the last few days, Uniswap has also released two new smart contracts (Permit 2, Universal Router) that aim to make the platform more cost-efficient and secure. These features make UNI one of the top two cryptos to invest in in the wake of the FTX meltdown.

buy uniswap

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Sushiswap (SUSHI) 

SushiSwap (SUSHI) is an AMM (automated market maker) and DeFi token that continues to see growing adoption. The DEX was designed to improve on one of the most popular Ethereum Dapps in the world, Uniswap. Specifically, SushiSwap introduces more community control mechanisms and DeFi features into the platform. 

As of late, AMMs have seen an uptick in users. These protocols are more popular than ever because they improve many of the shortcomings of traditional decentralized exchanges. For example, unlike a centralized exchange like FTX, which relies on an order book to link up traders and dictate pricing, AMMs utilize smart contracts to create markets for any two tokens. In this way, automated trading liquidity can be achieved between any two cryptocurrency assets.

AMMs solve issues such as a lack of liquidity in the market. These unique platforms allow any project to obtain liquidity via smart contracts known as liquidity pools. As such, AMMs are one of the best places to acquire hard-to-find and low-liquidity tokens.

SushiSwap targets DeFi users who can fully own their SushiSwap crypto assets. It only provides the platform for trading, but you hold 100% ownership of your purchases in SushiSwap.

Unlike centralized exchanges, SushiSwap is not bound by books or records to accomplish trades. To accomplish this, the protocol takes the initiative of connecting decentralized exchanges to avoid having a third party track the financial records of its users. 

A secure, decentralized, and anonymous trade is possible by connecting a user’s wallet to the software. Then, both the buyer and seller lock assets into a liquidity pool using smart contracts. The pool has protocol rules that secure the trade to ensure both parties receive the exact amount they agreed upon.

Users are also incentivized to follow the protocols of the liquidity pool to help maintain the security of SushiSwap. The protocols in place at the liquidity pools take a 0.3% cut from transactions, but its maintenance incentivizes users. In addition, this system makes the platform circulate more money than usual by buying and selling DeFi or centralized cryptocurrency exchanges.

On Sushiswap, users can scroll through a huge selection of tokens and trade their digital assets in seconds using this platform. Best of all, since the DEX is non-custodial, SushiSwap never holds your tokens. Features like these make SUSHI one of the top cryptos to invest in in the wake of the FTX meltdown.

buy sushiswap

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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