Tokens have recorded massive 20 to 40 percent gains on August 26 while major cryptocurrencies like Bitcoin and Ethereum maintained their low price range.
Bitcoin has remained relatively stable in the $6,700 region in the past 24 hours as Ethereum, Bitcoin Cash, Ripple, EOS, and Stellar all recorded slight losses in the range of 0.5 to 1.5 percent.
Unexpectedly, the price of ICON, Ontology, WanChain, Nano, WaltonChain, and Aion surged against both Bitcoin and USD. Against Bitcoin, Nano, Dent, and ICON recorded 33.5 percent, 33 percent, and 20 percent gains respectively, as the three best performing cryptocurrencies of August 26.
What’s Behind the ICON and WanChain Jump?
Historically, at least throughout 2018, tokens have followed the price trend of Ethereum, Ripple, and EOS, with intensified movements on both the upside and downside.
Yet, on August 26, despite the slight decline in the price of EOS and Ethereum, tokens have recorded a 5 to 10 percent rise in value on average.
The surge in the price of ICON, the second best performing cryptocurrency of the day, can be attributed to the team’s plan to buy back $5 million worth of ICX in the short-term, which the ICON team disclosed as one of their several initiatives of 2018.
ICON also partnered with Kyobo, the largest insurance conglomerate of South Korea, signing a memorandum of understanding (MoU) to develop blockchain-based applications for the insurance firm.
The ICON team said in June:
“theloop has been recognized for bringing a practical use-case for blockchain technology in the insurance industry through the Smart Insurance Claims service. theloop will accelerate its efforts to build a next-generation insurance platform with Kyobo Life. This MOU will lead to collaboration on more projects to increase efficiences in the insurance industry, a mutual effort to expand this technology to ASEAN, and blockchain advisory and support initiatives.
While the massive increase in the price of tokens like Nano, ICON, and WanChain likely have to do with daily volatility than long-term initiatives, the community has responded positively to the developments of ICON in the South Korean cryptocurrency sector.
WanChain, the third best performing digital asset of the day, also released its 2.0 client in July, which was not reflected in its price at the time. As a fork of Ethereum and a platform for decentralized applications (dApps), the hype around WanChain has risen since the release of its 2.0 version.
Can Tokens Continue This Momentum?
In the short-term, it is unlikely for tokens and the rest of the crypto market to remain in this price range, given the low volume of the cryptocurrency exchange market. Last week, the volume of the crypto market hovered around $13 billion.
As of August 26, the volume of the crypto exchange market remains below $10 billion, with the volume of Bitcoin having declined to $3.5 billion from $4.5 billion last week.
If major cryptocurrencies fail to see a recovery in their volume, in the next 24 hours, it is highly likely for tokens to retract and the market to remain in the low price range.
Featured image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:34 PM