Share this article
Avalanche, Fantom, Kadena, Terra, and other Layer 1 coins have posted double-digit gains today.
Layer 1 Projects Rally on Fed Meeting
Layer 1 projects are leading the market again.
According to data from CoinGecko, Avalanche is up 15.4% today, Terra has jumped 10.1%, and Solana has risen 9.9%. Other lower cap projects like Fantom and Elrond have also rallied, with each recording double digit gains. Kadena, a Proof-of-Work Layer 1 project, is outperforming all of them after gaining 21.6%.
The two largest cryptocurrencies, Bitcoin and Ethereum, are also trading in the green, though their jumps have been less significant. Still, the market is showing positive momentum after a relatively sluggish December, likely because of Wednesday’s Fed meeting.
The U.S. central bank hosted its final Federal Open Market Committee of the year yesterday, where it announced that it anticipates three interest rate hikes in 2022. The Fed Chair Jerome Powell also revealed that tapering would be accelerated to $30 billion a month, rather than the current $15 billion. Tapering is a strategy central banks use to reduce the effects of quantitative easing. It focuses on interest rates and slowing asset purchases, topics that have been increasingly at the forefront of investors’ minds since the beginning of the Covid pandemic. The Fed’s balance sheet has doubled from $4 trillion to $8 trillion since January 2020, with exuberant money printing acting as a catalyst for assets to soar in value. Stocks like Tesla and Apple have hit record highs over the last year, and crypto assets have also benefited from the unprecedented macroeconomic environment.
Many celebrated investors such as Paul Tudor Jones have sought refuge in Bitcoin as an inflationary hedge since March 2020, and when it was revealed that inflation was at a 31-year high in early November, the leading crypto asset rallied to $69,000 for the first time. However, the market has looked shaky over the last few weeks. Fears over the Omicron variant have sent fear through global markets, with crypto struggling to post new highs since the new Covid strain was discovered. Many crypto assets have been trading sideways for weeks.
Investors are indicating that the outcome of the Fed meeting is bullish for crypto, but it’s not only digital assets that have surged. The Dow Jones has also risen over 200 points, while the Nasdaq Composite Index is also up 2%.
Disclosure: At the time of writing, the author of this feature owned ETH, FTM, and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin Hits $69,000 Alongside Rising U.S. Inflation Rates
Bitcoin continued its upward trend today, hitting another all-time high amidst reports of rising inflation in the United States. Bitcoin Worth $69,000 This Morning Early Wednesday morning, Bitcoin’s price jumped…
Fed’s Jerome Powell: Inflation Could Turn Out Higher Than Expect…
During the highly-expected Federal Reserve meeting on Wednesday Afternoon, Chair Jerome Powell confirmed that inflation was set to continue for the dollar, perhaps even more than previously expected. Inflation Set…
Layer 1 Projects Rocked by Market Selloff
Many popular Layer 1 projects in the top 100 are down today amidst an overall market selloff. While the cause is unclear, possible factors include a new Covid variant, fears…
MDEX: Overlooked Decentralized Exchange That Pays You to Trade
Based on statistics from DeBank and dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX—an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain…