Why Altcoins Like Near Protocol and The Graph Plummeted Today
What happened
Tuesday wasn’t exactly a banner day to be an altcoin investor, as the assets leading the crypto pack were hit by sell-offs.
The prices of many altcoins fell on the day, with more than a few tumbling at double-digit rates. Among these unfortunates were Near Protocol (CRYPTO: NEAR) and The Graph (CRYPTO: GRT), both of which slid by over 10%. Emerging with relatively less damage was Helium (CRYPTO:HNT), down by “only” 7%.
Image source: Getty Images.
So what
In the crypto world, when Bitcoin (CRYPTO: BTC) sneezes, a vast number of other tokens catch a cold. That was certainly a mover behind the Tuesday drops of Near Protocol, The Graph, and Helium, as Bitcoin set the pace with a more than 6% slide.
There was little direct news with any of those coins that would have pushed their prices down. The same goes for Bitcoin.
The crypto leader likely suffered from a combination of the general financial asset trading lull between Christmas and New Year’s Day, and a recalibration of many mixed-asset portfolios that include comparatively risky holdings like cryptocurrencies.
Also, some brokerages are forcing/encouraging clients to liquidate more heavily leveraged positions at year-end. As Bitcoin is pricey these days and ever-volatile, it’s a prime candidate for such portfolio cleaning. That goes double for most altcoins.
Now what
Investors in Near, The Graph, and Helium shouldn’t be spooked by Tuesday’s price movements, even though — in the case of the first two coins — a double-digit drop isn’t easy to swallow. For example, Near Protocol is the native crypto of a proof-of-stake blockchain that could give Ethereum a run for its money, while Helium underlies a promising decentralized wireless network.
10 stocks we like better than NEAR Protocol
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 NEAR Protocol wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of December 16, 2021
Eric Volkman owns Bitcoin, Ethereum, and The Graph. The Motley Fool owns and recommends Bitcoin, Ethereum, and The Graph. 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.
