June 26, 2024
By Anjali Kochhar
In the midst of a turbulent Q2 2024, smart investors are turning their attention to China-based cryptocurrency projects. Despite the market downturn following an exceptional Q1, where Bitcoin and leading altcoins exceeded expectations, certain Chinese cryptocurrencies are showing promising potential. As meme coins, NFTs, DeFi tokens, and top altcoins like Solana and Ethereum face pressure, diversification into these Chinese projects might be a strategic move for investors.
1. Conflux (CFX): The Chinese Ethereum
Conflux, often referred to as the “Chinese Ethereum,” has been gaining significant traction. This project stands out due to its regulatory compliance and notable partnerships. Conflux utilizes a unique hybrid consensus mechanism, blending the functionalities of Bitcoin and Ethereum, which enables seamless transfers. Its EVM-compatible Bitcoin layer-2 solution has spurred the growth of DeFi and gaming applications on the platform.
The coin has seen substantial growth, rising from as low as $0.021 in January 2023 to a fivefold increase, despite recent market corrections. This resilience and growth potential make Conflux a key player to watch.
2. Neo (NEO): Building a Smart Economy
Founded in 2014, Neo is one of the pioneers of the China narrative in the blockchain space. Neo aims to build a “smart economy,” allowing users to manage their assets and digital identities trustlessly. Recent partnerships with Phoenix to explore AI’s potential in accelerating adoption and with SubQuery for decentralised data indexing solutions highlight Neo’s commitment to innovation.
The anticipation around the new utility for GAS tokens, which will unlock side-chain functionality and scalability, has been a significant driver of interest. Neo’s remarkable growth from all-time lows in 2016, experiencing a 146-fold increase, despite being down 94% from its peak, indicates its enduring appeal.
3. Filecoin (FIL): A Decentralised Storage Network
Filecoin, a leading decentralised storage network, is another noteworthy Chinese project. Integrating Squid Router and initiatives like FIL-RetroPGF-1 demonstrate Filecoin’s active efforts to enhance its network. FIL, the native token, plays a crucial role in prioritising and accelerating paid storage and boosting on-chain activity.
Filecoin is also expanding into emerging markets such as cloud computing and AI. Despite being down 98% from its all-time highs, FIL has increased by approximately 130% from its lowest point, suggesting it may be significantly undervalued.
As the summer progresses and market conditions fluctuate, these China-based cryptocurrencies offer intriguing opportunities for investors looking to diversify and potentially capitalise on the next market surge.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
