How do we measure the success of a blockchain?
My thinking around Hedera, Algorand, XRP and other utility chains
How do we measure the success of a blockchain?
Is it price action? TVL? Utility? Real world adoption? Innovation?
The most common measure I think for more people is price appreciation. A common comment I get on my YouTube channel is “All that great news and yet the price is flat.”
I can understand the sentiment, but it’s short-sighted.
Why I focus on utility coins such as XRP, Algorand and Hedera
I don’t make videos about Dogecoin. Why? Because it’s not interesting to me.
Dogecoin got a lot of attention. It’s a wonder of the internet that something created out of thin air, and the power of our human meme culture can drive something so silly to have a tremendous marketcap.
I am not one of the people who will say that something like Dogecoin has no value. It has no intrinsic value, true. Neither does the dollar. It has value because we give it value. That’s how money works. It’s that which wouldn’t have value outside of a medium of exchange.
I won’t even get into how one might value a blockchain. Algorand CEO Staci Warden expressed frustration around how on Earth one would start developing a dollar discount model around a blockchain.
But what I will say is that there is more value around something like Hedera or Algorand. Both are solving real-world problems. That includes payments: Algorand just announced that the Pera Card, which allows users to swipe their Pera Wallet at any Mastercard terminal and have it deduct USDC with minimal fees. It’s now live in several countries and coming to the U.S. soon.
And AI: Both Algorand and Hedera are making moves toward agent-to-agent payments, probably with Hedera in the lead (they launched a number of tools including a specific AI Studio).
Not to mention airline tickets minted as NFTs (and thus resalable), minting supply chains on-chain for easy and accurate tracking, and financial inclusion in countries where some parts of the population don’t have access to banks.
Future focus
That’s why I focus on coins with real utility. I think they will have more value in the future. These chains (and yes, I know Hedera isn’t technically a chain, but it’s hard to find a word to collectively include Hedera otherwise) in the long-term will provide more than speculative value. They’re actually solving real problems.
I think XRP will dominate banking, Algorand will dominate RWAs and Hedera will dominate AI. All three could play a role in all three areas (and probably will) but those are the strengths I see.
The future will be bright for utility coins. But who knows what that means for values.
Be sure to check out
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