Why Avalanche, Polkadot, and Solana Are Seeing Wild Trading Action This Week

By September 17, 2021Polkadot
Click here to view original web page at www.nasdaq.com

What happened

Avalanche (CRYPTO: AVAX), Polkadot (CRYPTO: DOT), and Solana (CRYPTO: SOL) are up 33.03% and 12.56% and down 22.75%, respectively, in the past seven days, as of 2:47 p.m. EDT on Friday. They are now trading at a respective $64.60, $33.45, and $140.51 apiece.

Developers behind Avalanche announced on Sept. 16 that it raised $230 million via a token sale to private investors. The Avalanche Foundation plans to use the proceeds to accelerate its transformation in the decentralized finance (DeFi) space. The smart contract platform enables scalability, low transaction fees, and interchain communications.

As for Polkadot, the Internet of Blockchain network is gaining significant traction. Due to its ability to issue parachains, crypto developers would no longer need to build their own blockchains and can simply use Polkadot's existing infrastructure. On Sept. 17, data company Crown Sterling launched its own encrypted, quantum-resistant block explorer on Polkadot.

Lastly, there were record amounts of profit-taking on decentralized applications (dapps) token Solana after investor euphoria sent it rallying over 100% in the past months. In fact, so many users transferred SOL from their wallets to exchanges to cash out that it sent the network offline for 17 hours on Sept. 15, further increasing its uncertainty.

Selecting options on a holographic DeFi panel.
Image source: Getty Images.

So what

Over 225 projects are under development on the Avalanche blockchain. For example, Tether, the company behind the $68 billion USDT stablecoin, is in the initial stages of launching USDT on Avalanche. Meanwhile, Polkadot has 494 projects on its network ranging from dapps to wallets to transaction validators and more. This also includes multibillion-dollar oracle token Chainlink. Finally, notable projects on Solana involve stablecoin USD Coin and FTX, the third-largest cryptocurrency exchange in the world -- both of which are choosing the Solana network for its fast settlement capabilities.

Now what

All three are mid-cap tokens in the DeFi space, with market caps ranging from $15 billion to $45 billion. But that's just the beginning for this promising sector. In early 2020, DeFi was essentially unheard of. Still, now, its total addressable market has grown to a staggering $177.37 billion and has already made new highs after a bearish capital flight in May. Moreover, the fundamental value of Avalanche, Polkadot, and Solana's projects are quickly catching up to their valuation. Hence, it's best to hold steady in the face of record volatility and let these promising tokens add wealth to your blockfolio.

10 stocks we like better than Solana
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Solana wasn't one of them! That's right -- they think these 10 stocks are even better buys.

*Stock Advisor returns as of September 17, 2021

Zhiyuan Sun owns shares of Avalanche, Chainlink, and Polkadot. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

All Today's Crypto News In One Place