Cardano (ADA) and Polkadot (DOT) tokens, two rivals to the Ethereum blockchain, led to gains among major cryptocurrencies on Monday amid a subdued rebound in broader digital asset markets.
Bitcoin (BTC) and Ether (ETH), Ethereum’s native cryptocurrency, returned to price levels on Friday after seeing a slight decline over an otherwise quiet Christmas weekend.
Bitcoin failed to break the $ 51,000 resistance level on Saturday and fell to $ 49,700 on Sunday, but traders have since bought the asset back to last Friday’s $ 50,900 level.
ADA was up 9.5% in the past 24 hours to hit a resistance level of $ 1.56 during the European hours on Monday. The move came after Cardano founder Charles Hoskinson spoke on a public broadcast of improved network improvements in 2022 and efforts to roll out ADA more widely in countries like Africa.
The Relative Strength Index (RSI), a price chart indicator, got overbought after the move at ADA. The tool calculates market dynamics for assets. An overbought level implies that prices are overvalued and may be prepared for a trend reversal or a corrective price pullback.
ADA tokens rose 9.5% on Monday to lead gains among large-cap cryptocurrencies. (Trade view)
DOT prices spiked last week when the second set of Parachain auctions on the Polkadot blockchain went live. The cryptocurrency saw similar overbought levels after rising 8% to $ 31.70 in the past 24 hours. The charts showed strength as drops to the $ 30.80 level were bought up by traders during the Asian hours.
Parachains are different blockchains that run on the main Polkadot blockchain. However, Polkadot has a limited number of slots that can support such parachains, which means that winning slots are subject to a community-run auction that uses DOT to vote for slots, leading to increased demand for the cryptocurrency.
Among other large-cap cryptos, tokens on the decentralized exchange Uniswap (UNI), which relies on smart contracts instead of third parties to execute crypto-to-crypto trades, rose 12% in the past 24 hours to 19.25 USD on Monday.
Other “blue chip” tokens for decentralized finance (DeFi) from 2020 saw similar price jumps. Aave credit protocol (AAVE) and Synthetix synthetic exchange (SNX) tokens have increased 10% in the past 24 hours, while tokens from DeFi platforms Sushi (SUSHI) and Yearn Finance (YFI) have increased 7% over a comparable period are.
The moves followed the talk among crypto traders on Twitter that the token prices of relatively older DeFi applications on Ethereum were undervalued – relative to their fundamentals – and could see an inflow of capital.
Jay Hao, CEO of the OKEx crypto exchange, said DeFi tokens would see another surge in 2022.
“As the crypto industry evolves and investors gain more knowledge about crypto assets, we will see more investments in certain coins that are part of the blockchain, which play a central role in decentralized funding,” Hao said in an email to CoinDesk .
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