What happened
Three leading altcoins, Tezos (CRYPTO:XTZ), Algorand (CRYPTO:ALGO), and Polkadot (CRYPTO:DOT), were among the biggest winners in the crypto markets today.
As of 1 p.m. ET, Tezos had appreciated 17.4%, while Algorand shot 11% higher and Polkadot ascended 11.3%.
Image source: Getty Images.
So what
Today, most large-cap cryptocurrencies are up substantially, along with risk assets such as growth stocks, as investors debate the seriousness of the omicron variant of the coronavirus. Capital appears to be flowing heavily into risk assets today, with digital assets seeing positive flows in this regard.
Tezos, a self-amending blockchain that is best known for its established role in the security token space, is among the biggest winners in the altcoin space today. Investors appear to finally be factoring in a catalyst from last Friday. Indeed, we saw Black Friday sales take hold in the crypto space, amid concerns relating to the omicron variant materializing after Thanksgiving. However, a piece of news that was seemingly overshadowed on Friday — that music non-fungible tokens (NFTs), including those from a member of Linkin Park, will be launched on the Tezos network — has provided another catalyst for investors bullish on what Tezos has to offer.
At least part of today’s rally in Algorand appears to be tied to some significant venture capital interest in this cryptocurrency. News that a former Citi banker has added Algorand as its first partner for its $1.5 billion fund has sent this token higher. This notable pick from a high-profile investor, and bullish commentary around Algorand representing a “paradigm shift” in the crypto world, has investors excited.
Polkadot appears to be moving alongside broader crypto markets. However, some have suggested Polkadot’s parachain auctions, tied to various rising metaverse-themed cryptos, could be driving the returns investors are seeing with Polkadot.
Now what
Each of these three altcoins are unique in the utility they offer end users. However, it’s clear that these three altcoins are ones with significant momentum today.
These tokens have each erased losses from this weekend, and appear to be resuming a positive trend. For long-term investors looking for altcoins with support right now, Tezos, Algorand and Polkadot look strong.
Of course, market-related headwinds could materialize, should investors turn bearish on risk assets once again. There remains a significant amount of uncertainty around this new coronavirus variant. Accordingly, capital flows into digital assets remain uncertain.
That said, these three tokens appear to be top of mind for investors looking to buy the dip today.
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.