To say that the journey of cryptocurrencies has been “bumpy” is to say nothing. The history of digital currencies begins with bitcoin, which debuted at five cents per token. And although since November 2021, this asset class has remained at the mercy of the “bears”, at the time of writing, one bitcoin was still worth a mind-boggling $43,011.
The second largest cryptocurrency is ether, and the total number of altcoins has reached 18,383 (and it is growing every day). In order to get into the top ten cryptocurrencies, you need to have a capitalization of more than $ 23.1 billion, which is not so little.
Cardano (ADA) and Solana (SOL) have earned a place in this “elite” club. And although ADA and SOL are trading below their highs from 2021, they continue to be in demand from market participants.
Signs of the end of the “black stripe”
Bitcoin and ether are still trading closer to their January 24 lows than to the record peaks of November 10, 2021.
BTC – weekly timeframe BTC – weekly timeframe
Source: CQG
Trading at $43,257 per token, bitcoin futures were about $8,670 above the low of January 23 and more than $23,000 below the high of November 10.
ETH – weekly timeframe – weekly timeframe
Source: CQG
As for the ether, its price of $3,053.50 as of March 24 was about $816.50 above the minimum of January 24 and $1,848 below the peak values of November 10.
At the same time, it is worth noting that converging triangles have been forming on the charts of bitcoin and ether since January 24. This model resembles a compressible spring, which sooner or later will straighten out, and the direction of the long-term trend makes an upward breakdown of the wedge more likely.
Bitcoin and ether remain the leaders of their segment, and many other cryptocurrencies, which are also highly capitalized, will focus on their dynamics.
Cardano and its Proof of Ownership Protocol
Cardano is a publicly available open source blockchain platform implemented on the basis of the Proof of ownership protocol (which is considered less energy—consuming than the proof of work protocol). Cardano makes it easier to conduct transactions in a peer-to-peer network using its own ADA cryptocurrency.
Cardano was launched in 2015 by Ethereum co-founder Charles Hoskinson. As of March 24, ADA was ranked seventh in the ranking of cryptocurrencies with a market capitalization of more than $ 38.5 billion.
The ups and downs of ADA
In October 2017, ADA debuted on the market at a price of 2.6 cents per token.
As you can see, a record high of $ 2.9682 was recorded in September 2021, after which the correction began. On March 24, one token cost only $ 1.14, but high capitalization and liquidity allow the currency to remain attractive in the eyes of traders and investors.
Solana Challenges the Ethereum Network
Solana is an open blockchain platform supporting smart contracts. Solana’s own cryptocurrency is SOL; project managers claim that their network is able to process transactions faster and cheaper than its main competitor in the face of Ethereum.
As of March 24, SOL’s capitalization is more than $ 31 billion (based on the value of one token at $97.32), which puts it on the ninth line in the list of the largest digital currencies.
Recent months have also been unfavorable to SOL
SOL listing took place in April 2020 at 78.0 cents per token.
In November 2021, a maximum of $ 258.93 was reached, after which the SOL sharply adjusted. Like ADA, it has sufficient liquidity and is rightfully among the top ten leaders of its class.
ADA and SOL are likely to follow bitcoin and ether (when they break out of their triangles), which makes them attractive alternatives to the two leading cryptocurrencies.
However, investors and traders should invest in cryptocurrencies only those funds that they can afford to lose. Potential profit goes hand in hand with risk, and in the case of digital currencies, there is always a threat of their complete depreciation.
