Significant price corrections like in May inflict great pain on most market participants and can turn into a death sentence for difficult projects as token holders surrender and sell their stocks at any price.
While these periods are useful for shaking off weak hands and eliminating unnecessary projects, they also provide strong performers with a chance to stand out from the crowd and attract the attention of avid investors looking for a safe haven in turbulent markets.
Two projects that have held up better than the major cryptocurrencies and are less than 20% below their highs prior to the 19. Solana (SOL) Yes Enzyme (MLN).
Enzyme benefits from the coinbase effect
Of the 200 major currencies Enzyme has outperformed them all in terms of recovery from the recent correction when the MLN token rose 150% from a low of $ 75.50 on June 4th to a high of $ 185 on June 7th, driven by trading volume a 24 hour period.
Enzyme is a decentralized financial protocol (DeFi) designed for on-chain wealth management, designed to enable investors to create, scale, and monetize investment strategies that can be used by other members of the Enzyme community.
After a relatively uneventful start to June, Enzyme received more notifications on Twitter starting June 6 with the Messari analyst, Jack Purdy, highlight that “even at prices below 40% from a few weeks ago, Enzyme’s under-managed assets were still near record highs.”
Though there weren’t any major events for the record than the price tag from Jan. the June 8 revelation that MLN would come to Coinbase Pro appears to be the driving force behind the recent token price surge, which shows that the Coinbase effect still has the potential to move the price of a token.
Starting today, inbound transfers are available for GTC, MLN AMP in the regions where trading is supported. Traders cannot place orders and no orders are executed. Trading begins on or after 9:00 a.m. PT on Thursday, June 10th if the liquidity conditions are met. https://t.co/wWYrUIXeRT
– Coinbase Pro (@CoinbasePro) June 8, 2021
Starting today, inbound transfers for GTC, MLN and AMP are now available in regions where trading is allowed. Traders cannot place orders and they will not be executed. Trading will begin on Thursday, June 10th at 9:00 a.m. PT if the liquidity conditions are met.
Solana recovers from its May 19th low
The second token that quickly recovered from the May crash is Solana (SOL), a Layer 1 proof-of-stake protocol that can process 65,500 transactions per second (TPS).
The momentum for the project began on June 2nd after start announced by the NFT platform, Metaplex, offers “a radically new approach to NFT stores” on the Solana blockchain.
This announcement was followed by a number of other project launches at Solana, including the algorithmic decentralized credit and credit platform. Solend and the decentralized futures exchange, Finances.
According to data from Cointelegraph Markets Pro, market conditions have been favorable for Solana for some time.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graphic above, SOL’s VORTECS ™ score has been green for most of May, and its score quickly rebounded above 67 on May 24, hitting a high of 80 on June 4, as the price rose another 30 over the next three days % began to rise.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you will need to do your own research when making a decision.