Fear, uncertainty and doubt have clouded the cryptocurrency space in the last week, primarily due to the Biden Administration’s proposal to double the capital gains tax rate. The news caused a strong sell-off across both the traditional markets and cryptocurrencies. While Bitcoin dropped around 23% since its all-time high of nearly $65,000, these cryptos managed to stay far above water.
Solana is a proof-of-stake cryptocurrency similar to Ethereum in that it offers a platform to build decentralized finance (DeFi) applications. In the past seven days, the cryptocurrency has increased over 35%, according to coinmarketcap. The cryptocurrency boasts a 1,828% increase year-to-date on the FTX exchange, according to tradingview. Solana is now worth over $34 per coin.
Some have speculated that cryptocurrencies that offer features comparable to Ethereum but without the high fees for transactions could be the cause.
“It is a combination of people being fed up with gas fees and comparisons on decentralization with other major non-Ethereum blockchains,” said the CEO of the FTX exchange Sam Bankman-Fried in a Coindesk interview.
Nano is a cryptocurrency that intends to create near-instant and feeless payments. Nano runs on a consensus system known as open representative voting. In seven days the crypto increased just over 35%. Its year-to-date performance is just over 618% on the Kraken exchange, according to tradingview.
Nano's steep increase as of late seems to be predominantly speculative. Some have attributed the rise in some of these other cryptocurrencies as a sign of 'altseason,' where alternative cryptocurrencies to Bitcoin start to gain as people begin looking at other opportunities outside of Bitcoin. Nano is currently over $7 per coin.
Maker is a cryptocurrency built using the Ethereum network. Maker is a decentralized application that handles a stablecoin called DAI. DAI is stable to the US dollar, but rather than a company making sure that the amount of stablecoins is represented by underlying dollars in a bank account, Maker does this automatically with code using Ether as collateral.
In the last seven days, Maker has increased by over 22%. Year-to-date, the crypto has increased over 592% and is currently worth $4,241 per coin on the FTX exchange, according to tradingview.
Reasons for its increase are likely due to Ethereums steep rise lately and DeFi's growing popularity.
PancakeSwap is a decentralized automated market maker. The decentralized application was launched on the Binance Smart Chain. Its primary use is as an exchange for Binance Smart Chain Tokens. The system can be compared to Uniswap on the Ethereum network.
In the last seven days, the crypto has seen a nearly 13% increase, and it has grown over 4,000% year-to-date, according to coinmarketcap. Given Ethereum's high transaction fees, users have sought out alternatives like the Binance ecosystem for decentralized finance applications. This has increased the use of things like PancakeSwap, leading to an increase in price. A PancakeSwap coin is now worth over $25.
Celo is a cryptocurrency focused on using smartphones for adoption where cell phone numbers represent public keys. This makes it easier to send and receive transactions.
In the last seven days, the crypto has jumped almost 9% and its year-to-date performance is nearly 237% on the OKcoin exchange, according to tradingview. The jump in price can likely be attributed to Deutsche Telekom's investment in Celo and their plans to start staking the crypto.
The telecommunications company and owner of T-Mobile plan to help build Celo's infrastructure in the coming years, according to a report from Reuters.
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