What Do Year-to-Date Price Action Tell Us?

There was action in the crypto market in the early days of 2023. The 25% increase in prices after challenging 2023 gave us some relief. The price movements in the first 16 days of the year can be a reference for the prices that may occur in the coming period because cryptocurrencies purchased during this period are likely to be investors' first choice.

Bitcoin and Ethereum

Bitcoin and Ethereum prices rose 27% and 31%, respectively. The two biggest cryptocurrencies have risen more than the market in general. After all, we are still in a bear market. As their confidence increases, investors may turn to other cryptocurrencies.

It is noteworthy that the value of Ethereum has increased more than Bitcoin. As of today, Bitcoin is 69% below the all-time high. Ethereum is 68% below the all-time high. So Ethereum is no longer an altcoin. Because it resists the bear market as well as Bitcoin, it is easy to predict that Ethereum will outperform in a potential bull market. In this framework, it would be rational to include Ethereum more than Bitcoin in our portfolio.

Play-to-Earn Category

The cryptocurrencies of Gala, Decentraland, Sandbox and Axie Infinity rose 193%, 132%, 85%, and 49%, respectively, in the first 16 days of the year. Despite these increases, the cryptocurrencies are at least 90% below their all-time high values. So play-to-earn coins have significant price volatility both up and down. This category has great potential. Therefore, it is unsurprising if play-to-earn coins and NFTs provide the highest returns in a possible bull season.

Splinterland's cryptocurrency SPS gained just 17%. On the other hand, Splinterlands Chaos Legion cards' values increased by 40% on average.

Solana

Solana's cryptocurrency SOL is up 140%. Solana's collaboration with the bankrupt Alameda Research and FTX led to the massive devaluation of the network. Despite the 140% gain, Solana is still trading 91% below its all-time high.

Thus, Solana became one of the top 10 coins again. Solana, a fast and high-capacity blockchain, deserves to be in the top 10 because of the utility it provides to users.

Hive and Leo

Hive and Leo gained 35% and 36% compared to the end of last year. These value increases are well above the market average of 25%.

Leo has been outperforming Hive since the first days of December. Both ecosystems have already made infrastructure improvements that will provide benefits during a possible bull rally.

Conclusion

We know that there is a high correlation between cryptocurrencies. Since the start of the year, all cryptocurrencies in the top hundred have gained value except stablecoins. The pricing is generally inversely proportional to the previous year. The coins of centralized exchanges, the cryptocurrencies that best resisted last year's bear market, have underperformed in the past two weeks. Last year's top losers, play-to-earn coins, were the stars of the previous rally.

Digital assets of networks with significant utility are performing well. Solana, widely used due to its fast and low-cost transactions, became one of the most profitable coins in this process. The clarification of the developments on the Ethereum network led to the rally of coins such as LIDO DAO and Optimism. Because the coins locked in the Ethereum network are expected to be released this year, future Ethereum improvements will increase the efficiency of scaling solutions like Optimism.

I expect that the prices will fluctuate this year. Unlike last year, I predict it will be possible to make money in 2023, provided we choose the coins correctly. Hive ecosystem digital assets stand before us as important alternatives in this context.

Thank you for reading.

Cover Image Source: Midjourney App

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