Reminder on the definition of a decentralized application
Decentralized applications (dApps) with their associated tokens are digital applications or programs that are executed by digital contracts on a blockchain or a P2P network (e.g. bittorrent) of computers instead of a single computer, and that do not fall under the jurisdiction and control of a single authority unlike Uber, Twitter, Apple's Appstore, etc..
In the context of cryptocurrencies, these dApps are often shared on a decentralized open source public blockchain network and can be used by any user who pays the network fees via the coin associated with the blockchain used (ETH for Ethereum, BNB for the Binance Smart Chain). These dapps also work with a "utility token" that is valued via a reward program like holders who save with a percentage of annual income.
For example: the Autofarm dapp whose associated token is AUTO (recently listed on Binance) with payment of network fees in BNB, offers to block via a smart contract, the deposit of USDC (stablecoin backed by the rate of the Dollar) with an annuity of almost 50% annual paid currently in USDC (16%) and AUTO (35%).You can see the video explaining how it works here
We will follow the path of such a token associated with a dapp with the strategic steps of listing on a wallet (digital wallet), monitoring the evolution of capital and the number of users (dappradar) to have a method to spot a token with high potential according to your analysis.
Dapps on decentralized Wallet
Before listing on a major exchange like Binance, there are intermediate steps for a coin/token, especially if it is a utility token for a dapp.
This study proposes to give a few tips to find the "rare pearl" with great potential in the world of decentralized applications (Uniswap, Pancake swap etc..) according to your final analysis.
First, you can do a sorting for the trendy projects on social networks through influencers, dappradar (see end of article) and / or make a fundamental study of the project.
Once a panel of token selected, we focus on tracking these dapps token on their Twitter accounts and listing on the wallets proposed by Binance.org (different from binance.com which is centralized)
Methodology
- Search for the most popular Wallets on Binance.org
- SafePal Wallet
- MathWallet
- TokenPocket wallet
- Dappradar, track your dapps with token utility
Go to https://www.binance.org/en and click on the "Wallet" icon
These wallet will also be compatible on other blockchain in most cases. You will have more possibilities while surfing on the very bullish trend of the Binance Smart Chain (BSC).
Note: The BSC (linked to the BNB to pay network fees) is currently one of the blockchain with the most growth in number of users and capital locked in dapps.
The SafePal wallet
This is a coldwallet that is highlighted by Binance.org and every time a project's dapps is listed on SafePal (on the marketplace of its smartphone app), it may have a psychological advantage over the hope of a future listing on a major exchange.
You can track the dapp of your favorite token on SafePal with the Twitter account of the tracked project or directly on SafePal's Twitter account here.
This can be a positive indicator of a project's growth in terms of user numbers (see the part dedicated to tracking/monitoring on dappradar) with a potential impact on the price (news effect)
The MathWallet wallet
Mathwallet, proposed by binance.org for the connection to the BSC. It is a software wallet and one of the few to offer a smartphone application (more than half of the world's internet traffic goes through this medium) and a chrome extension. These tools are widely used on computers to manage its wallet and validate transactions and digital contracts (smart contract).
To take the example of Autofarm's corner "AUTO", once the Autofarm dapp was listed on Mathwallet, the application had crossed a new threshold (see data on dappradar at the end of the article) in terms of users and daily volume in dollars. To follow the dapps listing Mathwallet's Twitter profile: here
The TokenPocket wallet
It is not a cold wallet but it could be a good compromise between security (software to download on computer) and a good user experience especially on its smartphone application (link here) quite fluid and a maketplace with recommended dapps of which may be the nugget you follow (for the listing of dapps on its marketplace, see its Twitter account here).
DappRadar, track your token
It is not a wallet but it is essential for the visibility of projects that want to list their dapps on the dappradar marketplace as soon as the application is functional (see picture below).
You can also get an idea of the growth of the users of the studied dapp. We can see that the growth of users follows in most cases the volume and therefore the price (see picture below).
Case study and conclusions: Autofarm
Autofarm is a dapp that works on the BSC, Binance Smart Chain (blockchain network with fees in BNB for each transaction).
Assuming that BNB continues its upward trend with a strong demand on the dapp for a limited supply with currently 25000 AUTO in circulation, the BNB can drag with it the most promising projects in terms of volume especially the dapps of the BSC (we have already seen in the article here)
And this is what happened in January, the BNB was in an uptrend on its price and its RSI with an acceleration of the trend on February 1st (see the chart below, with the RSI of the BNB in black):
To conclude and summarize our study
You can monitor the dapps projects with token utility with high potential on social networks with Twitter, dappradar and the listing on the main wallet cited for the study without forgetting to check the potential of the coin (BNB, ETH, DOT, AVAX, SOL, FTM, POLY....) linked to the chosen blockchain allowing to make the dapps work (network fees).
To go further
In a spirit of money management, it is interesting to study the impact of gains made through "bot trading Kryll" with transfer of values to these "dapps token" and vice versa.
You will undoubtedly have understood, the dapps are great tools and accessible for a quick pre-evaluation on the fundamental analysis of a project that we will see in a future article.
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