The 3 cryptos that outperformed the bitcoin crash: Polygon (MATIC), Celsius (CEL), and Helium (HNT)

The entire cryptocurrency ecosystem got hit hard by government regulations on digital assets, last week. However, it is interesting to see how each cryptocurrency is reacting to the sell-off. There is no question that the top 12 cryptocurrencies have all fallen, but some others have managed to recover and outperform over the past week.

In this article, I will point out the three cryptos that outperformed as the industry crashes, and the reason they are being explored as potentially useful technologies.

Summary

  • The three digital assets that perform well after the cryptocurrency crackdown: Polygon (MATIC), Celsius (CEL), and Helium (HNT).
  • MATIC’s price at the beginning of the year January 2021, was about $0.03 which gives Polygon (Matic) an increase of 7000% in the last 5 months.
  • Celsius provides a platform of services that have been abandoned by banks like zero fees, fair interest, borrowing and fast transactions. CEL’s price hit $8 before the crash it is now $5.88
  • Helium (HNT) gives a new way to mining cryptos without the use of wasteful GPUs and this can also be a threat to Nvidia’s success along with Ethereum 2.0. HNT is slightly above $15, after touching ATH of $19 at the beginning of the month.

 

 

 

The three digital assets that perform well after the cryptocurrency crackdown

 

Cryptocurrency

Market Cap (in billions)

Current Price

One-week change (in %)

CoinMarketCap Rank

Polygon (MATIC)

$13.7

$2.21

24%

#14

Celsius (CEL)

$1.6

$6.88

9%

#62

Helium (HNT)

$1.3

$15.88

25%

#71

 

Source: All information has been taken from CoinMarketCap

In my opinion, projects that were able to recover faster than other coins are worth taking a look.

About Polygon (Previously known as Matic Network)

 

One of the reasons Polygon did well is because of its so-called “Layer 2” technology that’s built on top of the Ethereum blockchain, in order to improve transaction speed and gas fees. Matt Hougan, chief investment officer of crypto fund provider Bitwise Asset Management, thinks that Polygon was able to bypass some of the congestion in the system during the selloff because it is meant to process more transactions. “Because of this approach, their network wasn’t congested,” he wrote. “As a result, users were able to trade with ease on Polygon while other approaches faced challenges.” The network boasts of up to 65,000 transactions per second on a single side chain, along with a respectable block confirmation time of less than two seconds.

Another reason can be that Polygon is using the proof of stake concept, unlike Bitcoin that is using the proof of work, a system that’s much more energy intensive. Elon Musk, CEO of Tesla (TSLA) has criticized Bitcoin’s environmental impact few days before the crash, and this could be another reason a proof of stake concept coin is performing better.

Furthermore, Polygon can be home to an unlimited number of decentralized applications on their infrastructure without the common drawbacks of proof of work (PoW) blockchains which is also something developers are attracted to.

Please note: Matic’s price at the beginning of the year January 2021, was about $0.03 which gives Polygon (Matic) an increase of 7000% in the last 5 months.

About Celsius

 

Celsius was founded in 2017 with a goal is to act as a catalyst for financial disruption on a global scale by offering services that will bring the next 100 million people into cryptocurrency. Celsius provides a platform of services that have been abandoned by banks like zero fees, fair interest, and allowing fast transactions. The platform has more than 745,000 users and has processed more than $8.2 billion in loans.

The best part about this coin is that it gives back rewards only by transferring currency to Celsius. Except from the interest earned, it allows people to borrow crypto.

Source: https://celsius.network/earn-rewards-on-your-crypto/#

Overall, lending and borrowing are increasingly popular on crypto platforms, and Celsius is becoming a bigger hub for that.

Please note: Celsius native token is CEL, and has touched its highest high in April of almost $8.

 

Source: https://celsius.network/earn-rewards-on-your-crypto/#

 

Overall, lending and borrowing are increasingly popular on crypto platforms, and Celsius is becoming a bigger hub for that.

Please note: Celsius native token is CEL, and has touched its highest high in April of almost $8.

 

About Helium

 

Helium is part of a project that aims to decentralize wireless communication by getting households and business to install small telecom hubs on their buildings, that will give them in exchange Helium tokens, HNT. By deploying this device in your home or office you can provide your city with miles of low-power network coverage for billion of devices which is revolutionizing the way of mining cryptos.

Mining HNT with hotspots is done via radio technology and not expensive or wasteful GPUs. This can be another threat to Nvidia’s (NASDAQ: NVDA) demand for GPUs by cryptocurrency miners.

Nvidia said that it believes the $2.76 billion figure in its first quarter financial earnings, benefited by demand for Nvidia’s GPUs by cryptocurrency miners, but CFO Colette Kress indicated in a commentary release that the firm doesn’t know the full extent of the impact. It also said that Ethereum 2.0 can be a threat to its GPUs demand.

Helium has more than 44,000 hot spots globally and the company says hundreds of companies and thousands of developers are already building on The People’s Network, the world’s largest, and fastest growing LoRaWAN network.

Please note: HNT, hit its highest high in May 3rd of more than $19.

 

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.

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