What happened
Today the cryptocurrency market is (finally) moving in the right direction for investors. Starting at 1:30 p.m. EST, Bitcoin (CRYPTO: BTC), Cardano (CRYPTO: NO), and Speckle (CRYPTO: POINT) all rose higher. Bitcoin gained 3%, stepping into the overall market. However, the Altcoins Cardano and Polkadot posted significant gains of 6.3% and 4.9%, respectively, in the last 24 hours.
Year-end risk sentiment has penetrated the equity and cryptocurrency markets, with a Santa Claus rally driving many top tokens up today. As a market leader, Bitcoin’s price performance may reflect general investor sentiment better than other altcoins.
For ADA, founder Charles Hoskinson recently revealed some fascinating growth prospects for the Cardano network in 2022. An open source project structure, an end-to-end microfinance project and a number of other Cardano improvement suggestions are on the table. These promising growth projects seem to have excited investors.
Polkadot got a boost yesterday after some Twitter banter about the Rust programming language that Polkadot happens to underpin. Former Twitter CEO Jack Dorsey described Rust as the “perfect” programming language that strengthened the profile of Polkadot and other cryptocurrencies with Rust.
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so what
The last few days of trading have been friendly for investors of all stripes. With that in mind, those with portfolios tending towards the higher end of the risk spectrum have really outperformed each other over the past week.
These top cryptocurrencies are among the most stable and well-known in the crypto world. However, the entire crypto market remains at higher risk, in part due to the difficulty many investors face in valuing the tokens that these networks represent.
Bitcoin’s stability, Cardano’s growth prospects, and Polkadot’s developer-friendly traits certainly point to three tokens worth considering for those looking to add some crypto exposure. While more volatility is expected on the horizon, there is a reason these three tokens are looking up today.
What now
Investing in cryptocurrencies is not for everyone. Many choose to trade crypto tokens or simply avoid those higher volatility assets. Such a view is certainly useful for those who are more risk averse.
However, the historical returns on these top three tokens certainly speak in favor of recognition of the tremendous value that underlies these networks. The recent catalysts that are helping the short-term surge in these tokens should be kept an eye out for those looking to build a longer-term crypto portfolio.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.
