Cardano (CRYPTO: NO), avalanche (CRYPTO: AVAX), and Arweave (CRYPTO: AR) fell 6.89%, 7.03% and 6.30%, respectively, in the 24 hours up to 9:50 a.m. EDT. They are now trading at $ 2.48, $ 56.34, and $ 56.92 each.
Unsurprisingly, ADA is tumbling after a “Sell the News” affair sparked by the long-awaited Alonzo upgrade. The hard fork enabled the smart contract functionality on the Cardano blockchain on September 12th. ADA tokens gained over 2,500% at this event last year.
As for Avalanche, AVAX tokens have gained around 20% in the past seven days and were due for a pullback. In a week, Ava Labs will launch its mainnet after securing $ 60 million in funding. After all, Arweave has been in full swing since August as investors discover the potential of the world’s first Blockweave network. The technology enables users to access permanent, decentralized data storage on the blockchain.
It’s important to keep expectations in check. With the help of Alonzo, developers can now create non-fungible tokens, decentralized applications (dapps), token swaps and decentralized financial functions (DeFi) such as loans and credits on its blockchain. However, ADA’s total market cap has already dwarfed $ 76 billion despite its very few projects. So whether it can dominate ether remains to be seen.
The same story goes for Avalanche. As soon as its blockchain goes live, Avalanche will take its first step into the lucrative world of DeFi. In this case, the decentralized trading of assets, such as B. tokenized shares, with settlement in just a few seconds.
Likewise, Arweave’s technology is still in its infancy. As exciting as a blockchain cloud platform may sound, competitor services like alphabetGoogle Cloud, offering data storage for just $ 0.02 per GB per month. So it remains to be seen how effectively Arweave developers can monetize their invention.
It’s important to keep in mind that due to a lack of regulation, the growth of the blockchain ecosystem far outperforms even the most successful tech stocks. For example, the total value of cryptocurrencies pledged in the DeFi industry has soared to over $ 100 billion this year, compared to near zero in 2016. In addition, cryptography has advanced so far that users have large digital assets move to blockchains like Arweave and have them verified anonymously without revealing sensitive information. This would enable the next evolutionary round in DeFi with services such as decentralized health care or car insurance. Overall, you shouldn’t overestimate the growth potential of cryptocurrencies, but neither should you underestimate them.
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