This weekend has been one of the best in recent history in terms of crypto asset performance. Bitcoin’s epic rally to retouch five figures has given its brethren a boost but there appears to be a pattern emerging. Chinese crypto assets are leading the way resulting in speculation that the red dragon may have just ignited another altseason.
Chinese Crypto Bulls Awaken
Most altcoins have remained on the floor this year. A brief move in summer renewed hope that an altseason may be about to begin again but that was quashed when all gains evaporated over the past few months.
Only a tiny handful of altcoins have made serious progress this year, the majority are still over 80% down from their all-time highs.
As Bitcoin got a major boost late last week from the Chinese president, crypto asset markets increased by 25%, or over $50 billion in just a day or two. Many of those low lying altcoins started to surge and Chinese ones were leading the pack as the fomo builds.
Tron has been explosive over the past day with a 30% surge to reach $0.021 or 215 satoshis. Daily volume is almost $2 billion which has push market capitalization up to $1.9 billion. Chinese entrepreneur and project CEO Justin Sun has been a marketing machine and he didn’t miss the opportunity to post that TRX was now a top ten crypto asset again.
— Justin Sun (@justinsuntron) October 28, 2019
There has also been a lot of Tether printing recently for chain swaps to the TRC-20 standard which Poloniex, Huobi and Bitfinex are now supporting.
VeChain is another Chinese crypto project and it is no surprise that this token is also surging 30% at the moment. VET has spiked to 44 satoshis in under 24 hours as the fomo intensifies in the People’s Republic. Bytom, another Chinese dominated crypto platform, has pumped over 100% in 24 hours as BTM topped $0.18.
NEO is another solid performer as this ‘Chinese Ethereum’ has cranked 35% on the day. Late last week NEO was trading below $7 and by Monday morning it had topped $12. Daily volume has surged from around $225 million late last week to $1.3 billion at the moment which equals that during the January 2018 peak.
There have been continual updates and development on the blockchain and network but until this weekend NEO has not performed at all. When NEO does perform well, its sibling tokens also get a lift and GAS and Ontology are cranking higher today.
Not So Fast …
Not all are so optimistic however and the Chinese fomo should be taken with caution according to some crypto analysts. Alex Krüger noted that China will not allow public decentralized crypto assets and is all about control;
“Odds of China supporting public blockchains with tradeable tokens that can be used for speculation and moving money out of China bypassing capital controls … are close to zero. China is not interested in decentralization but in control. Private blockchains don’t need tokens.”
This may be the case but it does seem that the China effect has caused more fomo than Bakkt, Libra and any crypto ETF promises combined.
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