Why Bitcoin Outperforms Ethereum, Enjin Coin, and Decentraland

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In the December 15 edition of “The Crypto Show” on Backstage Pass, Chris MacDonald, Fool.com contributor and Eric Bleeker, Fool.com editor, discuss the value of Bitcoin (CRYPTO: BTC) versus to other powerful cryptocurrencies such as Ethereum (CRYPTO: ETH), Enjin Coin (CRYPTO: ENJ) and Decentraland (CRYPTO: MANA).

Eric Bleeker: In the last seven days we have Bitcoin at 4%, Ethereum 13%, Solana (CRYPTO: SOL) 14%, Enjin 15%, Decentral, and 17%.

In part, I am bringing up this to show something that I guess in relative crypto terms has more stability, like Bitcoin having gains on the lower end.

Things that were recently a lot more story-driven, like Decentraland or Engine coin, which are benefiting from the growth of the metaverse, given the higher sales, which again fits that profile that we’ve been talking about in general, reducing the risks that occur. on the market right now.

Chris, let’s just look at some of the areas you talked about with the use of leverage. What do you see when you look at the crypto market right now?

Chris MacDonald: Yeah, I think that’s a really good introduction and a good way to look at it. When you think of Enjin coin, Decentraland, and Alien Worlds, some of the other games in the metaverse, there are some areas of the crypto market just like some areas of the tech market that are very high growth and booming and have been extremely successful.

Investors, I think, are looking to eliminate that risk now. Solana has had its own issues with some slowdowns on its network, and Ethereum, it appears the network has been plagued with higher gas charges lately.

Bitcoin seems to play more of the role of “stable Eddy”, as you mentioned, at least in the last week or so. As you mentioned, it is difficult to look at the crypto industry from week to week. Rather, they are investors who take a very long-term view or are looking to negotiate the sector.

For traders who move money in and out with momentum and leverage, some of those names whose bids go up may experience larger declines on the downside. I think that’s what we’re seeing right now.

Smaller moves to larger-cap cryptocurrencies translate to fairly deep or larger moves in some of these smaller-cap tokens.

Eric Bleeker: I found that interesting. We touched on this briefly on last week’s show. The activities, it is always difficult to correlate one by one, a specific action while the prices fall rapidly. Mass sales are often caused by much smaller moves than you might expect when you look at Bitcoin’s stock being a trillion dollar asset, right?

Chris MacDonald: Sure. Interestingly, it doesn’t necessarily take a lot to move some of the smaller cap cryptocurrencies much further, say a Bitcoin or Ethereum based on a narrative or market sentiment. It looks like a lot of these moves right now are driven by sentiment and sentiment is just not strong in the market 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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