Why The Sandbox, Polkadot, and Cardano Skyrocketed Today
As of 3:30 p.m. ET, The Sandbox (CRYPTO:SAND), Polkadot (CRYPTO:DOT), and Cardano (CRYPTO:ADA) each saw impressive moves over the past 24 hours. These large-cap cryptocurrencies appreciated 10.3%, 6.5%, and 8.6%, respectively.
The Sandbox has seen metaverse-related interest surge once again, leading the pack among these top tokens. Expectations that Ethereum-based metaverse games such as The Sandbox could see exponential growth have provided more momentum for this token. Last year, The Sandbox surged more than 100-fold, making it one of the best-performing tokens of 2021.
Polkadot’s layer-1 independent parachain-scaling solution has come into focus for many investors of late. This surge in interest has propelled Polkadot to a top-10 spot in terms of market capitalization. Interest in recent parachain launches, including that of Moonbeam, have investors interested in this network
Cardano has continued to move higher, as investors look for tokens built upon stable proof-of-stake networks. Recent news that Cardano surpassed 1 million trees planted in a bid to become a carbon-negative blockchain has many environmentally conscious investors excited. Additionally, network delays have been touted by key Cardano insiders as bullish, as these suggest overall ecosystem growth over time.
Each of these top tokens has a number of idiosyncratic catalysts driving it higher today. Investors interested in the growth of blockchain technologies and the cryptocurrencies that power them may want to consider these tokens on their own merits.
However, today has also been a positive one for investors across most risk assets. New inflation numbers, courtesy of today’s CPI report, suggest that inflation is sitting at around 7%. That’s what the market was expecting, so when the news wasn’t overly terrible and the market was pricing in underwhelming numbers, some level of calm can set in.
This has sent most risk assets higher, with the crypto market surging 3.5% on this news alongside the broader stock markets.
Notably, these three tokens have handily outperformed the market today, even factoring in the bullish outlook investors are taking. Crypto investors are becoming more laser-focused on tokens with growth potential in excess of the broader market. In this regard, these three tokens should remain on investors’ watch lists.
Despite today’s bullish moves among major alt coins, there’s likely to be more volatility on the horizon. The crypto sector has been extremely volatile in its brief existence. The crypto market is also one that hasn’t had to navigate a significant tightening cycle. Accordingly, approaching the crypto sector with some level of caution is always a good idea.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.