Various factors have contributed to the serious downfall of the global financial market, with nearly every major financial market having a difficult time. However, since cryptocurrencies were always high-risk, high-reward investments, they were the first thing that investors were to let go of.
And with the crypto market losing nearly $2 trillion over the past few months, it has become very competitive. In fact, many of investors are starting to turn on certain types of cryptocurrencies, specifically, blockchains enabled by a smart contract. The three biggest ones at the time include EOS, Tron, and Cardano.
A Silver Lining
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While it may be grim to watch investors harbor such negative opinions about blockchains that were fine just a few months ago, there is a silver lining to this specific situation. Various popular analytics sites believe that this sort of negative bias is likely a sign that the market could reach a bottom.
Since these three were fairly popular cryptocurrencies that have had crowds more or less turn on them, there is a chance that the market could make an effort to revive them. And in an effort to revive them, the market could likely make a major rebound in the process.
Other Smart Contract Blockchains Enjoying Short-Run Success
While some of the lowest performing blockchains that are relying on smart contracts are struggling to find relevance amongst investors, these blockchains on the upper end are enjoying their most lucrative short-term gains.
One of the major reasons why these smart contracts are improving is because of Bitcoin’s stagnation. While the biggest cryptocurrency in the market has fallen by at least 60% since the last year, it has allowed other medium sized blockchains to come forward.
If Bitcoin manages to maintain its price close to the $20,000 level, Aave, Polygon, and Chainlink could see incredible gains. But when Bitcoin starts to rally, it is very likely that these tokens will either stagnate or they will drop down to new lows.
Ethereum is also a Major Player
Of course, Bitcoin is not the only cryptocurrency that has a profound effect on the market, with Ethereum also being a major player. Supply for Ethereum has declined significantly, but that has not had a major effect on its prices.
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Investors are still unsure of what it means that Ethereum moved to a proof of stake model since it could plummet at any second. But as the price stagnates, investors still have ether on their list of top investments.
The new upgrade, better known as the Merge, completely changed how the company is managing the production of tokens and its carbon footprint. By decreasing mining efforts by over 90%, suffice it to say that they have accomplished at least one of their goals.