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Bitcoin and Ethereum are the most popular among investors. Always have, and possibly always will. However, part of that interest has since shifted to the market’s altcoins. As a result, this pair of altcoins appears to be a popular investment option.
Both Chainlink and Uniswap have lately set significant local highs, making them both worth a close look.
The $30 altcoins
Chainlink today finally broke the 3-month-old barrier of $30 as it traded at $31.1 at press time. Uniswap breached that same price level 2 days ago, before the SEC’s investigation into Uniswap Labs induced some corrections.
Even so, both these altcoins have been faring fairly well as this week alone, LINK rose by 22.86% while UNI was up by 17.42%.
For LINK, this marked an almost 50% recovery since the crash from its ATH of $52.
Regardless of price movements, investors have been promoting bullish behaviour as well. The altcoins’ daily transactions were around 4k for UNI and 12k for LINK. At the same time, both cryptos have seen a surge in buying and selling.
In reality, order books appeared to indicate that there is a 200k UNI higher desire for purchasing. On the other side, LINK sale orders totalled 1.5 million LINK.
But, is the network a good bet?
At the moment, the networks appear to be in a good shape as well. The MVRV ratio hit a 4-month high for both LINK and UNI. And yet, Chainlink has enjoyed better development activity than Uniswap, despite all the upgrades to its network.
Not only this, but LINK also has a better correlation with Bitcoin, with LINK standing at 0.72 and UNI at 0.36.
However, the matter of concern for investors comes when you look at ownership, which is dominated by whales. Due to both these altcoins being whale-dominated tokens, they are always susceptible to flash crashes.
Any time whales decide to dump their holdings, retail investors will face the heat since they will bear the most losses during such price falls.
Thus, it would be smart to be wary and research well before entering any of these crypto’s markets.