Three of the most watched crypto projects, chain link (CRYPTO:LINK), Cardano (CRYPTO: NO), and The Sandbox (CRYPTO:SAND), are each developing worse than the market today. While cryptocurrencies are up 0.4% overall over the past 24 hours, as of 11:00 a.m. ET, these three tokens are down 2.5%, 3.7%, and 3.1%, respectively, over the same period.
Chainlink has performed poorly as of late, falling about 16% over the past week. As an oracle network driving interoperability solutions, Chainlink serves an important function. However, investors today appear to be targeting specific projects rather than those seen as the crypto sector’s “plumbing fixtures.”
On the other hand, Cardano surged massively over the past week amid an announcement that the Cardano Forest project has successfully planted its millionth tree. However, today’s price action suggests that profit-taking is in order for investors as this token climbs to a top 5 position in terms of market cap.
Similar to Chainlink, The Sandbox’s continued decline today has pushed this token down more than 16% over the past week. Comments from Yat Siu, the founder and chairman of Animoca (the company behind The Sandbox), that companies like e.g meta platforms and Tencent That this space could be filled with meaningful threats seems to frighten some investors.
Undoubtedly, Chainlink, Cardano and The Sandbox are promising projects. They all offer unique value to developers and end users and are widely seen as tokens with excellent leverage for the growth of blockchain ecosystems around the world.
However, worries have continued across most growth-oriented asset classes today, hitting certain cryptocurrencies as well. These tokens have proven to be similarly sensitive to monetary policy decisions as high-growth tech stocks. With the US 10-year Treasury yield rising to 1.87% this morning, investors generally appear to be adopting a risk-off approach to their portfolios these days.
Whether it’s token-specific factors or macro headwinds (or both) driving these top cryptocurrencies down today, investors have reason to be cautious about how specific tokens will perform in the near-term. Those with a longer-term perspective might be tempted to view this sell-off as a buying opportunity. However, if this negative momentum continues, a better entry point may be on the horizon.
At the moment these three tokens are on my watch list and will be monitored going forward.
This article represents the opinion of the author, who may disagree with the “official” endorsement position of a Motley Fool premium advisory service. We are colourful! Challenging an investing thesis — including one of our own — helps us all think critically about investing and make decisions that help us be smarter, happier, and wealthier.