Insights

Strong Weekend Recovery Seen in Cardano, The Sandbox, and Binance Coin

What happened
Yesterday’s rather dismal performance in the cryptocurrency market has many investors down. However, this weekend, a number of top cryptocurrencies are seeing a strong recovery. As of 1 p.m. ET, Cardano (CRYPTO: ADA), The Sandbox (CRYPTO: SAND), and Binance Coin (CRYPTO: BNB) each regained some of yesterday’s losses. Over the past 24 hours, these tokens appreciated 5.7%, 7.8%, and 5.7%, respectively. 
Image source: Getty Images.

Interestingly, Cardano is among the blockchains that’s seeing interest build on this crypto market sell-off. Recent data shows that Cardano’s wallet count has increased by more than 70,000 over the past month, with whale transactions also surging to a 5-month high, as big-time investors seek to buy the dip on this top-10 crypto by market cap.
The Sandbox has continued to surge higher, on anticipation of the token’s listing on Coinbase. The “Coinbase effect” is still a real catalyst for many tokens, which benefit from increased liquidity and increased investor interest, particularly among whales.
Binance Coin, the native token of the world’s largest exchange — Binance — has seen increased interest of late after a multichain staking protocol, Stader Labs, announced it would be deploying on the BNB chain. As the BNB chain continues to see ecosystem growth, investors appear to like how this token’s valuation looks among valuation compression in this sector.
So what
Each of these top tokens has its own specific catalyst carrying it higher today. Of course, strong market-based momentum helps, with the overall crypto sector appreciating 2.4% over the past 24 hours, as of 1 p.m. ET. However, there appears to be good reason why these tokens are being targeted by investors right now.
Wallet growth, exchange listings, and ecosystem growth are key factors investors want to consider with their cryptocurrency investments. In many respects, Cardano, The Sandbox, and Binance Coin do have strong fundamentals, and are top tokens for a reason. In this environment, dip buyers have reason to look for deals, and weekend shopping sprees after weekday selling appears to be in order, at least on these short-term volatile moves. 
Now what
It’s important to keep any weekend move in any specific token in perspective. Trading volumes drop on the weekends, and we won’t know if any sort of rally is truly going to hold until next week. Accordingly, this nice one-day bump in these top tokens may be too early to celebrate, even for those who watch this sector closely on a daily basis. 
That said, the fact that these projects are seeing increased interest today suggests that perhaps the long-term value these tokens provide outweighs the near-term risks volatility in the market presents. There are still buyers out there looking for deals. And while momentum may still be to the downside, there are top tokens with some catalysts to consider, even as short-term plays in this market.
Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Yesterday’s rather dismal performance in the cryptocurrency market has many investors down. However, this weekend, a number of top cryptocurrencies are seeing a strong recovery. As of 1 p.m. ET, Cardano (CRYPTO: ADA), The Sandbox (CRYPTO: SAND), and Binance Coin (CRYPTO: BNB) each regained some of yesterday’s losses. Over the past 24 hours, these tokens appreciated 5.7%, 7.8%, and 5.7%, respectively. 

Image source: Getty Images.

Interestingly, Cardano is among the blockchains that’s seeing interest build on this crypto market sell-off. Recent data shows that Cardano’s wallet count has increased by more than 70,000 over the past month, with whale transactions also surging to a 5-month high, as big-time investors seek to buy the dip on this top-10 crypto by market cap.

The Sandbox has continued to surge higher, on anticipation of the token’s listing on Coinbase. The “Coinbase effect” is still a real catalyst for many tokens, which benefit from increased liquidity and increased investor interest, particularly among whales.

Binance Coin, the native token of the world’s largest exchange — Binance — has seen increased interest of late after a multichain staking protocol, Stader Labs, announced it would be deploying on the BNB chain. As the BNB chain continues to see ecosystem growth, investors appear to like how this token’s valuation looks among valuation compression in this sector.

So what

Each of these top tokens has its own specific catalyst carrying it higher today. Of course, strong market-based momentum helps, with the overall crypto sector appreciating 2.4% over the past 24 hours, as of 1 p.m. ET. However, there appears to be good reason why these tokens are being targeted by investors right now.

Wallet growth, exchange listings, and ecosystem growth are key factors investors want to consider with their cryptocurrency investments. In many respects, Cardano, The Sandbox, and Binance Coin do have strong fundamentals, and are top tokens for a reason. In this environment, dip buyers have reason to look for deals, and weekend shopping sprees after weekday selling appears to be in order, at least on these short-term volatile moves. 

Now what

It’s important to keep any weekend move in any specific token in perspective. Trading volumes drop on the weekends, and we won’t know if any sort of rally is truly going to hold until next week. Accordingly, this nice one-day bump in these top tokens may be too early to celebrate, even for those who watch this sector closely on a daily basis. 

That said, the fact that these projects are seeing increased interest today suggests that perhaps the long-term value these tokens provide outweighs the near-term risks volatility in the market presents. There are still buyers out there looking for deals. And while momentum may still be to the downside, there are top tokens with some catalysts to consider, even as short-term plays in this market.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info