After a few rough days, the cryptocurrency market is recovering on Tuesday. The stock market is on the rise and growth stocks are popping up, often causing cryptocurrency valuations to rise as well. Altcoins were the market leaders.
ribbed (CRYPTO: matic) It has jumped as much as 16.4% in the last 24 hours and is up 15.4% during that time as of 3:20 PM ET. near protocol (CRYPTO: close) It jumped 18.8% and is currently up 18.5%. Elrond (CRYPTO: EGLD) It jumped 8.9% and is now up 7.1%.
The crypto market in general was recovering on Tuesday but there was some specific news about these cryptocurrencies. Elrond has announced that it is buying Utrust, a cryptocurrency payments company. The idea of this acquisition is to build a network of low-cost online payments using cryptocurrency and blockchain. This could serve as an alternative to traditional payment networks, although there are many regulatory hurdles that must be overcome before any large-scale launch.
Polygon announces that it has launched its “Plonky2” technology and sets new records for speed and scalability for Layer 2 Ethereum blockchain. The group claims that it can now verify complex transactions such as Ethereum smart contracts, which would definitely be a hack.
Near Protocol is a Layer 2 blockchain similar to Polygon and it is gaining ground too. This could just be a phrasing on Polygon’s gains and the general move higher for cryptocurrency.
I won’t read much into today’s movement because the gains are widely spread. The market has sold off growth stocks and cryptocurrencies over the past few weeks and this is just a small recovery from some of those losses. For long-term owners, this is a natural fluctuation that we all need to get used to.
In the long run, I think today’s news is very positive for the cryptocurrency economy. Disrupting traditional payment networks is a natural use of cryptocurrency and Elrond is moving in that direction. It is not yet clear if it will succeed, but it is a positive strategic move.
I also think that Polygon’s improved speed and performance is bullish for the cryptocurrency. Upgrading Ethereum to proof of stake should make the Layer 1 blockchain faster, but this is a welcome improvement for the Layer 2 blockchain as well.
In general, I would like to point out today’s move to the natural volatility of cryptocurrencies. They have been following the market in general for the past few weeks and that continues today. This is why we like to focus on the long term and the facilities that are being built and all the cryptocurrencies you mentioned are building this tool over time.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.