After hitting a recent all-time high, Bitcoin remains in a narrow corridor between $63,000 and $66,000 for the second week in a row, with other cryptocurrencies moving up in the market rally.
Solana (SOL) — #4 by CMC
Current price: $235, +52% MoM growth
Polkadot (DOT) — #8 by CMC
Current price: $51,7, +58% MoM growth
Cardano (ADA) — #6 by CMC
Current price: $1.98, -10.5% MoM growth
These projects make it to the Top 10 crypto by market cap rankings, but their price dynamics differ. What is the reason behind that?
Polkadot (DOT) is experiencing significant demand from buyers willing to participate in the parachain auctions that are to start on November 11, while there are not many sellers on the market. Participants need to purchase an open auction slot. Those who provide a two-year (refundable) deposit of a larger DOT tokens amount will be granted a slot in the ecosystem. Driven by the incentive, all projects are competing to attract participants who are willing to lend their DOT tokens. Traders have a unique opportunity to grow capital: buy DOT, stake it, and receive a native token in return (that might eventually grow in value). Overall, the idea looks compelling, but who knows what the price of Polkadot will be in two years, and how successful and efficient the cross-blockchain system will become?
Solana (SOL) continues to develop the ecosystem, meanwhile one of the project’s main investors, the FTX exchange, has closed another $420M funding round. This summer, Solana Labs also closed a significant $314M round of financing, which immediately was reflected in the token price. Over last month total assets locked increased by 50%, reaching $15B.
In the overall positive Q3-Q4 market, Cardano (ADA) shows a decline of its token value. Showing strong price growth in September, after the smart contracts functionality release, a slowdown in trading activity drew ADA’s price down. Once the positive sentiment was exhausted, it turned out that one of the most important features of Cardano blockchain found little support among developers and users. Nevertheless, the Cardano (ADA) community continues pumping the project in social media stating that the project is still in the position to compete with Ethereum.