Keep an Eye on These Coins
The last week has not been kind to the cryptocurrency market, with centralized crypto exchange FTX’s collapse sending shockwaves through the market. All cryptocurrencies have dropped significantly from their previous support levels, just when the market was looking as if it might break out of its downtrend. However, there remain some crypto assets showing promise.
This week we examine Trust Wallet Token (TWT), PAX Gold (PAXG), GMX (GMX), Bitcoin Cash (BCH), and dYdX (DYDX). In selecting these assets, we have considered several factors, including positive technical developments, significant news events, and noticeable changes in price.
- The value of Trust Wallet Token (TWT) jumped 70% as investors considered non-custodial wallets in the wake of FTX’s collapse.
- Pax Gold (PAXG) experienced a 5% increase in market capitalization, hinting that investors may want funds in real-world assets.
- The GMX was one of two decentralized exchanges (DEXs) this week to grow significantly, with its market cap rising by over 10% following FTX’s bankruptcy.
- The mining difficulty and hash rate of Bitcoin Cash (BCH) went up by over 9% and 30%, respectively. Social media sentiment for this token also was positive in the latest week.
- The token of the decentralized exchange dYdX (DYDX) experienced a 28% increase in price, possibly because it’s another decentralized alternative to centralized exchanges like FTX.
Trust Wallet Token (TWT)
One of the most notable performers on this list is Trust Wallet’s Trust Wallet Token (TWT), which experienced an enormous jump of more than 70% midweek.
The fall of the FTX exchange has turned investors’ attention to non-custodial wallets—and Trust Wallet is one of the more popular options. With a non-custodial wallet, the crypto investor has sole control of the wallet’s private keys to their cryptocurrency that prove the funds are theirs. The desire for decentralized wallets has increased following the collapse of FTX, which offered custodial wallets with centralized control, and this may have benefited Trust Wallet. TWT started last week at $1.16 and is currently at around $2.43 (see chart below).
PAX Gold (PAXG)
The market cap of the PAXG token rose 5% to its current figure of $560 million and the price is now hovering around $1,732 (see chart below). PAX Gold is a stablecoin created by Paxos and is backed by physical gold. One token represents 1 fine troy ounce of a London Good Delivery gold bar.
In a time when most financial markets are volatile, some investors may be driven toward real-world assets or those linked to them, such as PAX Gold. The FTX crash has spooked investors, and it looks as if crypto investors are also branching out, where possible.
Here, too, it appears that investors are moving to decentralized finance alternatives, and GMX’s low fees and zero-price impact trades may be attractive to them. It’s a standout among DEXs at the moment, which investors could be moving to—even lesser-known DEXs—following FTX’s collapse. At the start of last week, GMX was valued at $37.70. It is now around $41.71 (see chart below).
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a bit of an outlier among this week’s tokens to watch, as its price did not increase by a particularly significant amount. Instead, its hash rate spiked by an impressive 30%, and its mining difficulty hit 9%. The former determines how much computational power is being used to mine crypto on a network, while the latter measures how difficult it is to mine a block.
Another reason BCH could be doing well is that recent social media sentiment about and mentions of the project are positive. The increase in mining difficulty and hash rate could be contributing to this. The coin now trading at around $103.60 (see chart below).
Decentralized exchange dYdX is another DEX that experienced a price bump in the week, with its DYDX token‘s value increasing by 28%. The token is now trading at around $2.30 (see chart below).
Like GMX, dYdX is possibly seeing price growth because there is a greater interest in DEXs after the FTX incident. Although dYdX is more well-known than GMX, investors also may be flocking to it for its margin trading features.
Investing in cryptocurrencies and other initial coin offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Because each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date when this article was written, the author does not own the cryptocurrencies mentioned above.