As February came to a close, 4 cryptocurrencies ended up recording monthly numbers that beat the overall average of the crypto market. In one of their articles today, CoinDesk seems to have claimed that this signals an impending bull market on the near horizon.
When the reason for the excellent performance of these particular currencies is known however, things might seem a bit less clear in this respect. To begin, the projects in question are: Maker, Theta, Enjin, and Metronome. Immediately, two of these, namely Theta and Metronome, present themselves are far less popular than crypto’s top players like Bitcoin and Ethereum.
Maker and Enjin, on the other hand, are a bit closer to being what Messari reportedly has termed “mid-cap cryptocurrencies” due to their market caps falling between $100-$500 million, though their recent performance metrics come with a few caveats. Out of all of these coins, Enjin particularly stands out due to the uncertainty surrounding it’s recent rise.
First, Enjin may have been significantly buoyed by the news that it is one of Samsung’s partners on their newest phone, the S10.
Simultaneously, the fact that it reportedly rocketed up 200% at one point due to this news lends to the idea that the bulk of its’ gains were due to speculation. In other words, it is difficult to know exactly how much value Enjin will add to the S10 ecosystem, given that its’ usage will depend on S10 users buying-in to the idea that Dapp-based gaming is a worthwhile venture. Current usage numbers in the greater Ethereum ecosystem would seem to buck against this idea, given that the current leading Dapp has only just over 1,500 daily users.
With this in mind, the argument could then be made that the true value of Enjin’s partnership with Samsung will really only become illuminated when the S10 begins to post user numbers for its’ Dapps. So, in the end, when any crypto investor is given a statistic like the top four coins that are outperforming the market, he or she should take such a proclamation with a grain of salt. Essentially, this means that only way to know the truth behind a claim like this is to do one’s own research and search for the forces behind the price movement.
By: BGN Editorial Staff