Coins in Correction: Explosive-Growth Small Caps Finally Take a Breather
The year’s best-performing cryptocurrencies entered a sharp correction on Wednesday, with the likes of Tezos (XTZ), Ontology (ONT) and VeChain (VET) falling by at least 9%. The pullback wasn’t out of the ordinary given the explosive growth seen across the small-cap world since the start of 2019.
After quadrupling in price in the last four months, Tezos fell 12.8% on Wednesday to $1.26, according to CoinMarketCap. XTZ, the blockchain’s native token, declined more than 11% against bitcoin.
XTZ peaked near $1.50 on Tuesday amid news that two blockchain-focused companies were planning to build a new real estate tokenization platform atop the Tezos network. The two firms, Elevated Returns and AlphaPoint, are creating a $1 billion market place for digital real estate in the Southeast Asia region. Tokenization has been dubbed the next multi-trillion-dollar market. Read for more: Four Future-Proof Investments for Your Portfolio.
After flying under the radar during ‘crypto winter,’ Ontology began its meteoric rise at the beginning of the year. At its height, ONT had rallied 134% year-to-date and peaked near $1.40. The project is gaining traction among investors because it promises to bring blockchain technology to the business world. Its mutually beneficial relationship with NEO has also strengthened its appeal among those who are believers in OnChain, a leading fin-tech company in China.
On Wednesday, ONT fell 12.1% to $1.08. The token incurred a loss of 10% relative to bitcoin. At current values, Ontology has a total market capitalization of $536 million.
Based on recent news cycles, there’s strong reason to believe that ONT will continue higher in the near term. The platform recently announced a partnership with MovieBloc, the film distribution network that utilizes Pandora TV and KMPlayer. Read more here.
After doubling in value in the third quarter, VeCain has experienced a sharp pullback in the last three weeks. The declines accelerated on Wednesday as the token fell 9% to $0.00636, including a nearly 7% loss relative to bitcoin.
VET hasn’t quite rallied in lockstep with the broader cryptocurrency market. The cryptocurrency has experienced two broad legs lower in the past month and is currently trading at its lowest level since the start of April.
Last week, VeChain held its first developer conference in San Francisco. Themed “Creating Valuable Transactions,” the conference brought in over 350 developers and academics as well as dozens of executives, government officials and investors. The project announced the launch of several enterprise-level blockhain solutions, including VeChain ToolChain, HSM Based Key Escrow Turnkey Solution and VeKey Based Threshold Signature Turnkey Solution.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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