Markets are weak but ALGO, FXS and HNT are rallying over 20% – here’s why
The large-cap cryptocurrency continues to tumble as investors await comments from the Federal Open Markets Committee on the exact size of the next rate hike.
However, there are some bright spots in the market, and select altcoins posted double-digit gains in trading on May 3, thanks to a large-scale partnership announcement and cross-protocol collaborations that led to a spike in demand.
Data from Cointelegraph Markets Pro and TradingView shows that three of the biggest gainers over the past 24 hours have been Algorand (ALGO), Frax Share (FXS), and Helium (HNT).
The pure proof-of-stake blockchain network has had perhaps one of the most notable partnership deals for a crypto project in recent months after announcing this week that it has been selected as the official blockchain of FIFA, the world-renowned international governing body of soccer.
BREAK: @FIFAcom has announced #Algorand becomes FIFA’s official blockchain, empowering the global football community with cutting-edge, sustainable technology. Continue reading @FIFA World Cup #FIFA World Cup pic.twitter.com/LuEFTY3WK6
— Algorand (@Algorand) May 2, 2022
ALGO was trading at $0.58 prior to the announcement and the price surged 28% to a daily high of $0.743 as news of the collaboration spread across the crypto ecosystem.
At the time of writing, ALGO is trading at $0.673, up 16% on the 24-hour chart.
In addition to the FIFA announcement, Algorand has expanded its ecosystem by introducing decentralized finance and non-fungible token protocols to the network. The project also launched a blockchain-based card game called Aegir Tactics and a real estate tokenization platform called Vesta Equity.
Frax Share, the Frax protocol’s native token, is the first fractional-algorithmic stablecoin project to launch in the cryptocurrency ecosystem, and on May 3, the asset posted a 23% rally despite the broader market collapsing into one downtrend.
FXS price rallied 23% from $21.89 on May 2 to $26.94 on May 3 after its 24-hour trading volume increased by 200%.
The sudden turnaround in FXS price comes as the popularity of 4pool, a new Curve Finance stablecoin liquidity pool developed by Terra, gained momentum as it was deployed on Fantom, Arbitrum and other networks.
Consisting of the stablecoins TerraUSD (UST), FRAX, USD Coin (USDC) and Tether (USDT), 4pool aims to help concentrate stablecoin liquidity across 4pools, which reside on each major chain via the Curve protocol.
Related: ALGO price threatens to correct by 25% despite Algorand-FIFA partnership hype
Helium is a decentralized blockchain network for Internet of Things (IoT) devices and is powered by a global system of low-powered nodes run by miners.
Cointelegraph Markets Pro VORTECS™ data began spotting a bullish outlook for HNT on May 1, ahead of the recent price rally.
Exclusive to Cointelegraph, the VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements, and Twitter activity.
As seen in the chart above, the VORTECS™ score for HNT rose to a high of 79 on May 1, about 13 hours before the price surged 20.35% the next day.
The gains for HNT followed a developer announcement detailing plans to implement Helium 5G data transfer rewards. This allows 5G hotspot operators to earn HNT whenever a compatible 5G device sends data over the network by connecting to users’ hotspot.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/markets-are-weak-but-algo-fxs-and-hnt-book-a-20-rally-here-s-why Markets are weak but ALGO, FXS and HNT are rallying over 20% – here’s why