Altcoins explode higher: Synthetix, Uniswap, and more rally by over 20% 🚨 This article is 4 years old...
Altcoins explode higher: Synthetix, Uniswap, and more rally by over 20%
2 min read
Updated: Feb. 4, 2021 at 8:07 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
“Altcoin season” may have begun as coins aside from Bitcoin and Ethereum take center stage, outperforming strongly against BTC and the U.S. dollar.
Nearly every cryptocurrency in the top 100 by market capitalization is up in the past 24 hours, save for Tron (TRX), NEXO, stablecoins, and Siacoin (SC).
Ethereum has also started to outpace Bitcoin once again, showing the strength of the altcoin market. Many believe that profits that investors took on BTC are cycling into altcoins, hence Bitcoin’s stagnation in price.
Altcoins erupt higher
Altcoins have seen extreme strength over the past 48 hours.
Synthetix Network Token (SNX) is up 30 percent in the past 24 hours, pushing past $10 for the first time ever. The cryptocurrency is erupting higher as there are high expectations for new products and for the launch of a second-layer scaling solution in collaboration with Optimistic Ethereum, a rollup-based network.
Uniswap (UNI), too, is up 21 percent in the past 24 hours. There are also expectations that it will launch some sort of second-layer scaling solution in collaboration with Optimistic Ethereum, yet this has yet to be confirmed by developers.
Cardano (ADA) is also shooting higher. The coin is up 17 percent in the past day.
This may be set to continue, according to prominent trader “CL207”. The trader commented that he just saw a spike of capital flow into the DeFi market via an over-the-counter transaction, suggesting there are large buyers expecting the decentralized finance market to gain steam in the weeks ahead.
“OTC alarm just went off on a 3M buy on DeFiPERP, almost never seen this kind of OTC size on altcoin futures before, think we gana see a lot of defi coins start popping x2 x3 etc soon.”
OTC alarm just went off on a 3M buy on DeFiPERP, almost never seen this kind of OTC size on altcoin futures before, think we gana see a lot of defi coins start popping x2 x3 etc soon pic.twitter.com/aa71hjuMIP
— CL (@CL207) January 5, 2021
Bitcoin preparing for a drawdown
Bitcoin could face a drawdown, though, which could put the ongoing altcoin rally at risk.
Michael Novogratz, the CEO of Galaxy Digital and a former Goldman Sachs partner, says that Bitcoin is “vulnerable” to a pullback after gaining around 100 percent in the past six weeks.
Others have shared this sentiment online, citing the overbought nature of the Bitcoin and cryptocurrency market at current levels.
A Bitcoin drawdown would likely cause altcoins to drop further than BTC, as altcoins often act as “high beta” versions of Bitcoin in bear trends.
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Siacoin
$0.00566
Sia is a decentralized data storage platform that revolutionizes cloud storage by creating a trustless marketplace for direct transactions between buyers and sellers.
Nexo
$1.39289
The Nexo token is the world’s first dividend-paying asset-backed security token and is backed by the underlying assets of Nexo’s loan portfolio.
Uniswap
$13.6295
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
Loopring
$0.21007
Loopring is a decentralized automated execution system that trades across the crypto-token exchanges, shielding users from counterparty risk and reduce the cost of trading..
Stellar
$0.37213
Stellar is a multi-currency payment backend that tens of thousands of people use every day.
Synthetix
$2.19551
Synthetix, formerly Havven, is a cryptoasset-backed network that enables the creation of on-chain synthetic assets.
Cardano
$0.94453
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Galaxy Digital
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy.
Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
Michael Edward Novogratz, born on November 26, 1964, stands out as an iconic figure in the financial realm.