Why this cryptocurrency has climbed nearly 30% today with the overall crypto market downturn

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What happened

Today there is a small cryptocurrency that is taking a big leap. Earlier this morning, Celo (CRYPTO: CELO) climbed to $ 4.72 per token, which is an increase of almost 30% since yesterday’s close. This rapid movement was quickly corrected, although Celo remains 5.2% higher over the past 24 hours, at 12:30 p.m. ET. The move comes amid downward momentum in the crypto world today, with the overall market down 3.4% at the same time.

Yesterday’s announcement that the crowdfunding platform Kickstarter would migrate to a Celo blockchain-based platform provided a key catalyst for this cryptocurrency. It appears that investors primarily in Asia have jumped on this catalyst, with Celo’s outsized movement occurring during the trading hours there.

Image source: Getty Images.

So what

Celo is one of the top 100 cryptocurrencies, but many investors may not have heard of it. With a market capitalization of “only” $ 1.4 billion, it is a relatively emerging player in the crypto scene.

What makes Celo special is the focus this blockchain ecosystem has on increasing the adoption of crypto among smartphone users. For platforms like Kickstarter looking for more market share among mobile users, as well as those without access to banking services, Celo’s platform is appealing.

In addition, it has been called an excellent blockchain network from an environmental point of view. This network’s proof-of-stake network has helped Celo go carbon negative, which Kickstarter executives appreciate. Given the attention that is now being paid to energy consumption in the crypto world, Celo’s environmental positioning is worth considering. At least, Kickstarter executives think so.

Now what

The world of cryptocurrencies is a large and rapidly changing space. It’s impossible to keep an eye on everyone. Indeed, Celo is a blockchain network that may not have received the attention it rightly deserves.

This announcement could pave the way for new partnerships and the adoption of the Celo blockchain. As a result, the strong spike we’ve seen with Celo lately seems to be justified.

It should be noted that Celo tokens remain around 65% below their 52 week highs. So, this is a small cap token that many investors may want to grab a flyer about right now.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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