Keep an Eye on These Coins
The new year has arrived, but it doesn’t yet look as if the cryptocurrency market has the energy to lift itself out of its doldrums. However, the crypto market comes with quick shifts of fortune, so investors may find themselves in a better position sooner than they expect in 2023.
This week we examine BitDAO (BIT), OKB (OKB), Litecoin (LTC), Lido DAO (LDO), and Algorand (ALGO). In selecting these assets, we have considered several factors, including positive technical developments, significant news events, and noticeable changes in price.
- BitDAO’s BIT token posted a sharp price rise of 30% after the project announced a $100 million buyback and an L2 scaling solution.
- The OKB token also went up by about 30%, likely because of an integration with NEST.
- The price of Litecoin (LTC) rose by about 7% as “whales,” or individuals or entities that hold large amounts of cryptocurrency, seem to be accumulating the token.
- The market capitalization of Lido DAO’s LDO token increased by about 5% as its team provided information about how it resolved a mid-November rewards distribution issue.
- Algorand’s (ALGO) market cap went up by about 4% after it introduced an incubator called Algorand Ventures.
One of the biggest gainers this week was Web3-focused platform BitDAO. The project’s BIT token recorded a large jump of about 30% after the project announced a $100 million buyback of its BIT token following successful voting in a proposal.
BitDAO also revealed a Layer 2 scaling solution called Mantle, which will be released later in January. It will offer quick and cheap transactions on the Ethereum network. BitDAO started last week at approximately 28 cents and is valued at about 37 cents in recent trading (see chart below).
The OKB token was another big gainer this week, going up about 30% after announcing a partnership with NEST Protocol. The partnership will allow OKX wallet users to use NEST Protocol’s Futures, Options, Swap, and non-fungible token (NFT) functions directly.
OKB has had a comparatively good few weeks, which bodes well for the exchange. The token continues to increase in price at the start of the first month of 2023. OKB is currently trading at around $30 (see chart below).
Litecoin (LTC) was a surprising gainer this week, going up by nearly 7% to be priced around $75 by Jan. 2 (see chart below). Whales, or big crypto market players, seem to be flocking to the coin, accumulating it at a particularly high volume.
Litecoin had an eventful 2022, with more than 50 million unique wallet addresses registered. The ecosystem appears to be growing for this Bitcoin alternative, and it could enjoy a strong 2023.
Lido DAO (LDO)
Lido DAO, the project behind the liquid staking solution for Ethereum, posted a rise of about 5% in market cap for its LDO token. The project experienced a rewards distribution issue that caused a “slight disruption” between Nov. 9 and 11, but said the problem was fully resolved on Nov. 13, and that “neither user funds nor accrued rewards were at risk or otherwise affected.” The large crypto exchange FTX collapsed and filed for Chapter 11 bankruptcy on Nov. 11, which had repercussions across many crypto platforms.
Liquid staking allows users to stake tokens but also to unstake them without the transactions being enabled. Lido DAO has emerged as the premier liquid-staking option in the past 18 months. LDO was worth 98 cents last week and is now hovering close to $1.20 (see chart below).
The Algorand (ALGO) project also gained, up around 4% in market cap after the announcement of Algorand Ventures. It is an incubator “dedicated to providing funding and launch support to the best builders and investors in the Algorand ecosystem,” the project said in a Dec. 30 tweet.
Algorand received a lot of exposure in December as the official blockchain partner for the FIFA World Cup, played then. This sponsorship and technical partnership, first disclosed in May 2022, increased attention given the project. ALGO is currently priced at around 18 cents (see chart below).
Investing in cryptocurrencies and other initial coin offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Because each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date when this article was written, the author does not own the cryptocurrencies mentioned above.