Snowfall touts itself as a “multi-chain interoperability” protocol. It is a cross-chain project that will allow for the transfer of fungible and non-fungible tokens across both EVM and non-EVM compatible blockchains. This is considered a breakthrough in the web3 industry and will make blockchain interoperability much easier and smoother.
With a market cap of over $13 billion, Cardano (ADA) is one of the leading cryptocurrencies in the market today. The token has also registered a decent growth spurt this year, jumping nearly 50 percent YTD. However, the smart contract network could be in for some competition in the coming months.
This is because an upcoming cross-chain project, known as the Snowfall Protocol, has been breaking records and could be on track to give ADA a run for its money. But what is the Snowfall Protocol and why is it a threat to Cardano, Solana and others? Tag along to find out.
The Snowfall Protocol: What is it?
Snowfall touts itself as a “multi-chain interoperability” protocol. It is a cross-chain project that will allow for the transfer of fungible and non-fungible tokens across both EVM and non-EVM compatible blockchains. This is considered a breakthrough in the web3 industry and will make blockchain interoperability much easier and smoother.
According to the project’s website, Snowfall will enable “users to swap assets across the most widely used EVM and non-EVM compatible chains. We are building the highways needed for millions of people to communicate to every blockchain.”
Currently, blockchain networks operate in silos. While they offer revolutionary features and functionalities, they are walled ecosystems. Therefore, users of one blockchain can seldom use its native assets to access and utilise the products and services on another blockchain. Users who wish to do so need to use complex token-wrapping protocols or cross-chain bridges. In either case, the process can be quite tricky and unsuitable for novice investors.
Snowfall is looking to change this narrative by conveniently linking all the walled siloes, allowing users to easily enjoy interoperability between the various blockchain networks. Let’s explain this with the help of an example. As we all know, PlayStation and Xbox are two very distinct gaming platforms.
Therefore, any in-game rewards earned on one console are usually non-transferable. It’s a similar case with NFT games on different blockchains. However, Snowfall will allow users to transfer their skins, coins, rare items, and other in-game items between different blockchains. The same can also be said for fungible assets as well.
Why is Snowfall a threat to Cardano, Solana and others?
Snowfall has been making headlines for its record-breaking pre-sale rounds. The protocol’s first pre-sale round closed in a matter of hours, with 95,000,000 Snowfall Protocol (SNW) successfully sold. During this round, SNW tokens were on sale for just $0.005.
The second presale round did just as well, selling out one day before its scheduled close. With tokens on sale for $0.015, those who invested in the first pre-sale round were already looking at 3X gains within the protocol’s presale stage itself. Now, the project is in its third presale round, with tokens priced at around $0.20.
At the time of writing, there were only a few hours remaining in the third round of Snowfall’s pre-sale. According to an article by the Cryptonomist, the project has sold over 300 million tokens to date, with SNW seeing a 500 percent increase since its first presale round. Going forward, experts believe that SNW could see 1000X gains, regardless of the market sentiment. This could put it on track to outperform established coins such as Cardano and Solana.
Conclusion
Snowfall is a project that shows immense potential in the future. With record-breaking pre-sale rounds, the project has already delivered substantial gains to investors and experts believe it could deliver further returns in the future. However, the crypto industry is highly volatile and prices can fluctuate wildly, despite the strongest indicators. Therefore, it is important to do your own research and invest only as much as you can afford to lose completely.
