The Crypto market is booming. Here are the top performers of the rally

Key receivers

The crypto market is breaking out for the first time in weeks, sending the digital asset space back over $1 trillion. Bitcoin regained the crucial $20,000 level, helping other assets to rise. Tokens linked to Solana, Cardano and Ethereum are also on the rise.

Share this article

The last rally brought the total crypto market value back over $1 trillion.

Crypto holds an auction

The crypto market is showing significant strength for the first time in weeks.

Bitcoin and many other crypto assets have rallied over the past 24 hours, breaking out of the tight trading ranges that have marked their price action in recent weeks. The top cryptocurrency moved above the $20,500 level on Wednesday morning for the first time since September 14, signaling a bullish breakout. According to CoinGecko data, it is currently up 7.1% on the day.

The rally sent the total crypto market capitalization over $1 trillion. While this area has served as strong resistance in recent months, a critical break above it has helped confirm the bullish pressure in the market.

There are several possible reasons for the recent crypto upswing. The U.S. dollar index, a tool that tracks the dollar against a basket of other world currencies, has fallen sharply since the start of the week. As crypto and the broader stock market have been inversely related to the dollar in recent months, a drop for the greenback often results in a rally for risk assets.

US Treasury Secretary Janet Yellen said on Tuesday that the government may issue more short-term Treasury bonds to improve market strength. Doing so will increase the liquidity of the US dollar, another metric that seems to be tied to the crypto market. When there is more liquidity in the financial system, crypto assets tend to accumulate.

While Bitcoin usually leads market growth, in this instance, the number two cryptocurrency, Ethereum, has soared. Over the past day, Ethereum has jumped 14.2%, fueled by several rounds of short liquidation. It is currently the top performing crypto asset, beating out other Layer 1 competitors such as BNB Chain and Avalanche. However, it's not just Ethereum that excels. Several other coins and tokens followed his example, making double-digit gains.

Recent top performers

In the Layer 1 space, today's raid featured two highlights. Cardano, which recently completed its Vasyl hardfork update, jumped 12.7 percent on its long-term Layer 1 network, despite hitting a local low of $0.33 in less than a week. The sudden strength may be due to the number of traders who shorted Cardano before the market increased. Due to Cardano's slow growth and technological failures, it is often considered overvalued. However, the eighth largest cryptocurrency is also known by the dedicated community. ADA bulls may have come out aggressively to push the coin higher.

Another Tier 1 project showing strength today is Solana. Like Cardano, Solana appeared to have broken down, hitting a new local low of $27.42 on October 21. However, it has rebounded significantly, probably for the same reasons. Solana's active NFT scene may also have helped it recover quickly due to the demand for SOL among NFT traders.

Several tokens adjacent to Ethereum are also benefiting from the market exit. Lido and Rocket Pool, two liquid level protocols, are in double digits on the day. Rocket Pool jumped 15.9%, one of a handful of tokens to outperform Ethereum. According to data from crypto market data provider Messari, Rocket Pool has grown its market share by 31 percent since September. As Rocket Pool's native RPL token adds validator rewards to the protocol, the increased usage can now be reflected in demand.

The final highlight for the past 24 hours is the Optimist Ops token. The Ethereum Layer 2 project is up 18.4% on the day. It briefly regained the psychological $1 level after trading below it for several weeks. Demand for Ethereum is flowing into the Layer 2 ecosystem. Optimism is currently the largest Layer 2 network with tokens, so investors can view it as a high beta play. Other signs in the ecology of optimism They also benefited from today's rally. Synthetix Network's SNX token rose 9.4%, while Velodrome Finance's VELO jumped 9%.

Disclosure: At the time of writing this piece, the author owned ETH, BTC, SOL and many other crypto assets.

Share this article