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After spending 2022 in the slump, the cryptocurrency market soared in January, with the biggest chip winners dropping by the most in the past year.
The aptos token of the layer 1 blockchain has been the biggest winner out of 160 assets of the coindesk market index, a measure of the overall performance of the market, with a jump of 387% this month. Gaming- and metaverse-affiliated tokens including Gala Games’ GALA token and Decentraland’s MANA token gained 233% and 149%, respectively.
"It's not uncommon to see the hardest hit coins rally the most when the market goes up," martin leinweber, a specialist in digital asset products at market vector indexes, said. "These little altcoins have a higher beta to bitcoin on how to rise and how to fall."
The increases come in the course of a large-scale leap up in digital assets which has seen bitcoin and aether, the two largest market capitalized cryptocurrencies, increase by about 40 percent and over 30 percent, respectively. The CoinDesk Market Index has climbed 38%.
The APT token from Aptos was the biggest winner of 160 assets in the CoinDesk Market Index in January. (CoinDesk Indices)
Aptos’ rise
Founded by ex-Meta Platforms employees and launched in October, Aptos had a rocky start amid widespread questions about the network's transaction speeds and tokenomics. The November market tsunami sparked by the crypto ftx swap crash sent the apt price to an all-time low of $3 on Dec. 29, A decrease of over 76% compared to the original registration of $13, depending on the data from coindesk. The ftx investment arm and titan a16z risk capital were part of the aptos investors.
High short-term traders apt early in the year, showing a desire to "pay three figures in annualized interest to do so," Leinweber said coindesk, referring to the sharp decline in the annualised interest rate of apt in January. 25.
Leinweber stated then that there is no pressure on the price of the sale because the unblocked Aptos investors are not expected to start until next October, Aptos' highly negative positioning has resulted in massive compression in the short term, Ended up driving up the price in the last month.
Coinglass data shows $115 million in liquidated short positions compared to approximately $70 million long liquidations since Jan. 8. The trend can highlight a lot of traders' concerns about Aptos.
“For the token to justify its market value, it will need to significantly increase its user base and liquidity before venture capital becomes available," added Leinweber.
The Metaverse chips are bouncing.
Increases in media, culture and entertainment tokens outpaced all other sectors as the CoinDesk Culture & Entertainment Index skyrocketed 81%. Among the biggest gainers were metaverse-related tokens MANA (Decentraland) and SAND (The Sandbox), which recently rose 152% and 91%, respectively. Game to win The AXS token from Axie Infinity jumped around 75%.
A report on Monday by crypto data company Kaiko noted a skyrocketing turnover of metaverse token transactions on the largest crypto exchange in South Korea, Upbit, in relation to Binancy, the largest stock exchange in the world in terms of trading volume.
“The trend suggests that the Korean region has a particular affinity for the metaverse,” according to the report, noting that daily volumes had crossed $600 million for the four tokens Jan. 22-23, almost twice the bi-daily binary volumes.
Cryptomarkets, which are largely driven by equity performance over the past month, especially in the technology sector, have clearly outperformed key indices. Nasdaq and nasdaq alike.
Bitcoin, ether, S&P 500, Nasdaq, CoinDesk Market Index returns in January (CoinDesk)
Other crypto winners have included the LCX cryptocurrency exchange’s LCX token and Fetch.ai's native token, which recently rose 292% and 201%, respectively. Solana’s SOL token surged 146% in January to recently trade around $24, rebounding from its December record low of $8.19. A favorable, late December tweet by Ethereum co-founder Vitalik Buterin, who expressed “hope” that the Solana community “gets its fair chance to thrive,” has helped spark SOL’s rally.
January’s Losers
The chain's XCN token in the CMI currency sector was one of the last two months, dropping 10 per cent. MXC, the native token of the MXC Supernode network in the information technology sector, has dropped by about 5%.
