The crypto market slides down to the bears, as digital assets continue to fall prey to fear and uncertainty in the business. Wherefore the market cap of the crypto industry has lost its hold on the $2 Trillion mark and is currently hovering around $1.98 T. While the crypto king remains severely affected, altcoins have been catching the wind of Bitcoin’s trend.
The fall of altcoins has resulted in the novices fretting, who have been longing for an alt season in January. While newer traders are getting bearish at bottoms, older hands with deeper pockets continue their routine of accumulations. In the interim, emerging coins from the stable of NFTs and Metaverse have been recovering at a brisker rate.
Will NFTs Be The Marshal Of Altcoins?
The crypto market has stuck in the whirl of market-wide corrections. Wherefore the market cap of the industry has been plunging towards the support. Altcoins, which were refraining from the market sentiments, have been catching the wind off-late. As a result, FUD and bearishness around top-tier alts such as ETH, BNB, SOL, and ADA has been escalating at a swift rate.
The spikes of fear in the market have been hitting peaks from the sell-off during June / July 2021. Top-tier assets are now oversold from the fear, sources suggest that over 136,000 wallets have liquidated in the past 24-hours. Tallying the sum to about $526.16 M,the net flow of BTC and ETH have gone negative by $7.4 M, and $45.3 M respectively.
According to Santiment, several altcoins such as AXS, TEL, LPT, FARM, STMX, and QUICK have been ascending with daily active addresses. Successively, NFTs and Metaverse projects have been exhibiting appreciable numbers. Since the market cap of NFTs and newer projects is relatively lower, these need less monetary influx to rally.
Moreover, traders are now finding NFTs to be a safer bet over mainstream assets, owing to regulatory implications. The numbers of NFTs have been instilling faith in traders, for instance, Axie Infinity is up by 5.67%, Theta Network has scripted 5.6%, and Tezos is up 5.2%. On the other hand, metaverse projects Decentraland and The SandBox are recovering at a brisk pace.
Summing up, as it is being stressed by numerous proponents from the industry, NFTs, and metaverse hold immense potential for the current year. In the interim, nothing much can be expected from the top-tier coins both in terms of short and long positions. The plunge could be shallow for altcoins this year. With the increasing number of buyers and celebrities joining the digital world, NFTs could plausibly pave the way for an Alt season in near future.
Source: https://coinpedia.org/non-fungible-token-nft/will-nfts-save-the-alt-season-from-drowning-in-the-first-quarter-of-2022/