After Facebook announced the name change of its conglomerate to Meta, the platforms and cryptocurrencies linked to the Metaverse gained new momentum and became the new hype of the crypto asset market, which even surpassed the boom in non-fungible tokens (NFT).
However, experienced crypto analysts like Mike ermolaev, Head of Public Relations at ChangeNOW, point out that both the NFT mania and now the new wave around the Metaverse can only be fueled if the market-leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) support the market’s upward trend underpin.
“Before investing in altcoins, it is important to keep an eye on the movement of Bitcoin and Ethereum as it will give you a clearer picture of the cryptocurrency market,” he said.
In the case of Bitcoin, for example, although the cryptocurrency set a new record almost 60 days ago, the cryptocurrency is currently trading in the range of 57,000 US dollars.
To the Tasso lake, Cryptocurrency expert and founder of Financial Move, this trading range indicates that BTC is within a symmetrical triangle (highlighted in blue). This lateralization could last until December 7th.
“The main support is in the region formed by the LTA, on the order of $ 55,000, and the biggest challenge right now is between $ 60,000 and $ 61,000 moving towards a new bullish wave,” he said
However, all this uncertainty in the face of the new OMICRON variant of the COVID-19 virus, the analyst said, is weighing on the markets. The futures markets are in the red after the market closes because the US has already identified a case in California.
This, he says, could also have a negative impact on the price of Bitcoin, forcing another decline (just because of the fear of COVID).
“Bitcoin is correlated to the global equity markets, and if we see the equity markets falling, it is possible that BTC will coincide with it. The main support would be at $ 50,000. For this week, I’d like to recommend the defensive stance. I advise investors to take a more defensive stance and wait for that Omicron fear to develop, “he said
Neither Metaverse nor NFT focus on smart contracts
While Lago currently advises caution, the analyst also noted that investors can assign positions in Ethereum and Polkadot (DOT), two platforms that focus on smart contracts and allow developers to build numerous applications, from metaverses to decentralized finance (DeFi).
Similar to Lago, Lucas Schoch, CEO and founder of Bitfy, pointed out 3 cryptocurrencies that investors shouldn’t lose sight of at the moment. All of them were related to enabling the creation of smart contracts.
This is the case, for example, with Terra (LUNA), which is not a platform like Ethereum and Cardano (ADA), but whose blockchain also allows smart contracts, but focuses on stablecoins.
“This cryptocurrency has a wide range of partnerships with payment platforms in the Asia region, and a commission of 2 to 3% is charged for every transaction made within its blockchain, Terra, which changes the currency from year to year Value gains Today, LUNA has a weekly valuation of more than 62.50% and has grown by more than 9% in the last 24 hours, “the analyst emphasizes.
Matic and Ethereum
Schoch also refers to Polygon (MATIC), formerly known as Matic Network. The token was launched in October 2017 and was co-founded by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, two veteran blockchain developers and business consultants.
Before moving its network in 2019, Polygon was a major contributor to the Ethereum ecosystem, with his team working on the Plasma MVP implementation of the WalletConnect protocol, a project that enables high throughput transactions but does not support self-builds complicated like scripts or smart contracts.
In addition, they also took part in the Dagger Event Notification Engine, an algorithm that uses directed acyclic graphs to simultaneously obtain an easily validatable computational memory that is widely used in Ethereum.
“Polygon is the answer to the most important challenges in today’s ETH network, such as high fees, poor UX and poor transaction performance, and is the first well-structured and easy-to-use platform for developing the scale and infrastructure of Ethereum, the main component of which is the polygon SDK is a modular and flexible framework that supports building different types of applications.
The Polygon Network’s MATIC token, a project focused on reducing the complexity of blockchain scalability and instant transactions, has valued at over 10% in the past 24 hours and has increased another 20% in the past week “, he says.
The analyst also notes that investors should keep an eye on Ethereum, which is the main smart contract platform out there and has lost some of the hype with the recent rise of competitors like BSC, Cardano and others.
“It has appreciated over 10% in value, but don’t give this cryptocurrency any meaning when you least expect it, it will shoot higher than you can imagine,” he concludes.