Categories: Uncategorized

Polkadot Leads Altcoin Losses After Bitcoin Is Rejected at $52K

Bitcoin failed to hold above $52,000 after briefly breaking through the resistance level on Monday, and slipped below $49,500 in early European trading hours on Tuesday, pulling the broader market lower.

Leading losses among the top 10 cryptocurrencies by market capitalization were Polkadot’s DOT tokens, which fell 8% in 24 hours after being a top gainer on Sunday. Others such as solana (SOL), cardano (ADA) and XRP averaged losses of 3.4%, while binance coins (BNB) gained 0.4%.

A catalyst for DOT’s upward price movement last week was the start of the second batch of parachain auctions on the Polkadot network. Parachains are distinct blockchains that run atop the main Polkadot network. Polkadot, however, has a limited number of openings available. To gain access, a parachain has to win a community-run auction that uses DOT to vote for slots, leading to increased demand for the cryptocurrency.

DOT surged to over $32 on Monday, but traders have since taken profits and the tokens exchanged hands for $28 in Asian trading hours on Tuesday. They are, however, still 20% higher than last Tuesday.

Prices slipped, falling below the 34-day moving average – a tool used to determine market trends using past prices – in Asian trading hours Tuesday. Failing to trade above the moving average indicates DOT’s decline from $54 highs in November is likely to continue.

Other big losers among large-cap cryptocurrencies were tokens of decentralized payments network Terra (LUNA) and Ethereum scaling solution Polygon (MATIC), with both sliding 7% in the past 24 hours.

Tokens of the two surged in the past week following favorable catalysts: decentralized finance (DeFi) activity rose on Terra as crypto investors bet on the network as the next DeFi play, while the launch of top Ethereum-based exchange Uniswap on Polygon saw demand for MATIC increase.

Ethereum rivals, gaming cryptos fall

Outside of the top 20, tokens of Ethereum rival blockchains took hits. Near (NEAR) and Cosmos (ATOM) – which surged last week as traders searched for the next ecosystem that could replicate Ethereum’s success – slid 8%, while Fantom (FTM) dropped as much as 9% in the past 24 hours, data from CoinGecko showed.

Gaming-related cryptocurrencies were another losing sector. Gala (GALA) tokens declined 7%, while fan-favorites Axie Infinity (AXS) and The Sandbox (SAND) both lost 4.4% following record surges in the past few months.

Read MoreFeedzy

Bitcoin failed to hold above $52,000 after briefly breaking through the resistance level on Monday, and slipped below $49,500 in early European trading hours on Tuesday, pulling the broader market lower.

Leading losses among the top 10 cryptocurrencies by market capitalization were Polkadot’s DOT tokens, which fell 8% in 24 hours after being a top gainer on Sunday. Others such as solana (SOL), cardano (ADA) and XRP averaged losses of 3.4%, while binance coins (BNB) gained 0.4%.

A catalyst for DOT’s upward price movement last week was the start of the second batch of parachain auctions on the Polkadot network. Parachains are distinct blockchains that run atop the main Polkadot network. Polkadot, however, has a limited number of openings available. To gain access, a parachain has to win a community-run auction that uses DOT to vote for slots, leading to increased demand for the cryptocurrency.

DOT surged to over $32 on Monday, but traders have since taken profits and the tokens exchanged hands for $28 in Asian trading hours on Tuesday. They are, however, still 20% higher than last Tuesday.

Prices slipped, falling below the 34-day moving average – a tool used to determine market trends using past prices – in Asian trading hours Tuesday. Failing to trade above the moving average indicates DOT’s decline from $54 highs in November is likely to continue.

DOT remain in a downtrend since November 2021. (TradingView)

Other big losers among large-cap cryptocurrencies were tokens of decentralized payments network Terra (LUNA) and Ethereum scaling solution Polygon (MATIC), with both sliding 7% in the past 24 hours.

Tokens of the two surged in the past week following favorable catalysts: decentralized finance (DeFi) activity rose on Terra as crypto investors bet on the network as the next DeFi play, while the launch of top Ethereum-based exchange Uniswap on Polygon saw demand for MATIC increase.

Outside of the top 20, tokens of Ethereum rival blockchains took hits. Near (NEAR) and Cosmos (ATOM) – which surged last week as traders searched for the next ecosystem that could replicate Ethereum’s success – slid 8%, while Fantom (FTM) dropped as much as 9% in the past 24 hours, data from CoinGecko showed.

Gaming-related cryptocurrencies were another losing sector. Gala (GALA) tokens declined 7%, while fan-favorites Axie Infinity (AXS) and The Sandbox (SAND) both lost 4.4% following record surges in the past few months.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Recent Posts

Dogecoin, XRP Trading Volumes Flip Bitcoin’s in South Korea

South Korean traders are known for pushing euphoric rallies on tokens, contributing to buying pressure…

53 minutes ago

Pro Crypto Traders Are Leveraging IBIT Options to Bet on BlackRock’s Bitcoin ETF Doubling to $100: Observers

The bullish sentiment in the IBIT options is consistent with the noticeable activity in the…

3 hours ago

Bitcoin Closing In On $100K: The Case For A Future Valuation Of $1 Million

Since November 5, the day President-elect Donald Trump secured another term in office, Bitcoin has…

3 hours ago

Here’s Why The Bitcoin Price Could Surge To $138,000 Before Recording A 30% Crash

Crypto analyst Ali Martinez has provided insights into what the Bitcoin price trajectory could look…

4 hours ago

Bitcoin ETF Options Attract $2B on Day One, Shifting BTC’s Market Structure

IBIT options went live Tuesday in a first, a move that market participants widely expect…

5 hours ago

Coinbase Delists Wrapped Bitcoin wBTC, Citing ‘Listing Concerns’

Announcement comes shortly after the exchange launched its own ‘wrapped’ bitcoin on Base – cbBTCRead…

5 hours ago