The cryptocurrency market is close to ending 2021 with a day of massive sales. Aave‘s (CRYPTO: AAVE) The token was caught in the background and fell about 3.6% in the last 24 hours of trading at 4 p.m. ET, but there were a handful of app-backed cryptocurrencies that manage to overcome the downward pressures.
While their gains were relatively small compared to days with even larger moves, weave‘s (CRYPTO: AR) AR token and Cosmos‘ (CRYPTO: ATOM) ATOM tokens are among the top performing major cryptocurrency tokens in the last day of trading. Arweave token has climbed around 4.2% in the last 24 hours of trading, while Cosmos token has climbed around 2.5% across the stretch.
After months of stellar gains, most cryptocurrencies experienced a period of bearish volatility in December. There doesn’t appear to have been anything major causing the valuation pullback in the cryptocurrency space on December 31, but investors have generally taken a more cautious stance on high-risk games. .
Aave token is just one of many victims of Friday’s end-of-year setback, with market-leading crypto tokens Bitcoin and Ethereum also down about 2.7% and 1.9%, respectively, at the time of this writing. The Aave token is now down around 9.5% in the last seven trading days, while Arweave’s AR token is down around 1.7% over the period.
While most cryptocurrencies have seen massive sales over the past seven days, Cosmos’ ATOM token is a notable exception. The ATOM token has gained around 9.4% over the past week, and it seems to be gaining attention as investors seek networks that can advance all of blockchain, decentralized finance, and spaces of cryptocurrency.
Cosmos’ ATOM token has now jumped around 400% in the past year of trading. Cosmos provides services that help connect data between separate blockchains, which could prove to be very valuable and help drive up the prices of its token as the markets for cryptocurrency and blockchain services continue to evolve. New blockchain and cryptocurrency projects seem to pop up every day, but most of these ecosystems are isolated from other networks.
If the market for blockchain services continues to grow and gain the attention of businesses and individual users, there is likely to be an increasing demand for interoperability between networks. Cosmos isn’t alone in wanting to provide these kinds of features, but it is showing signs of impressive adoption momentum and now has 262 apps and services using its network.
Against the backdrop of historical trends, investors shouldn’t over-read today’s moves in the cryptocurrency space. The broader crypto market is predisposed to high levels of volatility, and it is not uncommon to see tokens showing even larger moves even when there is no news to trigger action on them. price. However, while today’s sales for major cryptocurrencies might not tell investors much about the overall outlook for digital tokens, the fact that Arweave and Cosmos have managed to post large gains could be. a sign that support is growing behind these networks and their respective tokens.
Crypto investors should probably go ahead with the expectation that digital token prices will again be very volatile in 2022. The overall combined valuation of cryptocurrencies roughly tripled during the course of trading. 2021, which creates high expectations this year. While it is possible for some cryptocurrencies to record stellar gains again due to the strength of their underlying applications and services or due to continued speculative momentum, the risk profile in the space appears to have increases. After such an outstanding performance in 2021, there is a lot to prove in the New Year, and investors may want to be selective about which crypto tokens they invest their money in.
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