Crypto Market Review - Not A Lot Of Winners

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As the crypto market continues its downwards trend, it is interesting to see what coins are going against the trend and what coins are especially hit. In this article I will try to cover the winners and losers of the past week and try to explain why they are in these extreme positions of down or upwards trends.

Last Week’s Winners

It is surprising and refreshing to see some coins to be in the green over the past week. Especially in times like these where the whole crypto space seems to get slaughtered there are still some projects which can make good gains. By the time of writing there were only three major projects which noted a positive uptrend over the past week. These were Internet Computer, Chainlink and Dash.

Starting with the Internet Computer it can be said that this coin is traded in general very poorly. It is far away from its all time high which was when it began trading. These short term gains that we are currently seeing have their origins in the release of “district”. For you who don’t know, “district” is a decentralized social media app which is built on this blockchain. It will be interesting to see whether this app will get ahead and will be used as well as how the price of ICP will develop in the future. The continuation of this rally is more than uncertain due to many early investors which are still invested in this project.

Next up is Chainlink which is a decentralized Oracle network which provides data about the real world and smart contracts. There was no specific reason for its recent pump. Although a guess would be that the incredible selling due to liquidation of several DeFi contracts caused a increased demand for data feeds during the last week’s crypto crash. Other than that the only explanation could be manipulation but this would have been a bigger scale than it had last week.

The last project on this short list is Dash. Dash is another blockchain that is set the target to provide a fast and decentralized payment network. For its pump there could be several factors. The first one being that there will be an upcoming release of a Mastercard program. This would allow users to use their Dash Coin at merchants without KYC. Furthermore, Thorchain announced that it is about to add Dash to its cross-chain DEX. This addition would make it possible to trade the Dash Coin for other popular crypto Coins without KYC

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Last Week’s Losers

After the good news, there are also some bad news and with the current market state there could not be enough of them. I think that this list can not give any indication of a trend in any sectors because the like mentioned before the whole market is in the red. The worst five performers were unfortunately Curve DAO Token, Gala, Loopring, Aave and Axie Infinity. Some people might suggest that the Metaverse Sector is on its downfall after the enormous hype, which is why Tokens like Gala or Axie Infinity are falling. But then there are also Exchange Tokens like Aave and Curve Dao that are probably falling because of the massive liquidation and selling pressure on the smart contract protocols. All of these projects did not have any severe bad news which would justify such high negative returns which make sit hard to explain it rather than just the indication that the whole crypto market in general is doing badly right now.

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Conclusion

With that being said, I want to end on a good note and with some hope. Although the past two weeks were rough, and it does not look like we saw the worst happing keep one thing in mind: The crypto space is far from being erased. This is fact because of the massive adoption it had in the past year. Furthermore, a lot of institutional investors are just waiting for the go to invest into crypto more. This is why I think we should treat this crash as a opportunity to stack up on projects that we believe will have a long term future and where you think that institutions will invest in soon. What are your thoughts on this crash? Do you think it will soon be over or that we did not see the worst part yet?

Published by ga38jem on
LeoFinance
On 10th January 2022

Posted Using LeoFinance Beta



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