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SOL and MLN have recovered from recent lows thanks to a quickly developing ecosystem and fresh Coinbase listings, while the broader market trades sideways.
Significant price corrections, such as the one saw in May, cause widespread suffering for the majority of market participants and can be fatal for struggling projects as token holders capitulate and dump their holdings for any price offered.
While these periods are useful to help shakeout the weak hands and weed out unnecessary projects, they also offer strong performers the opportunity to stand out from the crowd and attract the attention of eager investors looking for a safe haven during choppy markets.
Two projects that have been more resilient than crypto majors and are down less than 20% from their highs established prior to the May 18 market sell-off are Solana (SOL) and Enzyme (MLN).
Enzyme benefits from the Coinbase bump
Out of the top 200 coins, Enzyme has outperformed the field in terms of bouncing back following the sell-off as the MLN token surged 150% from a low of $75.50 on June 4 to a high at $185 on June 7, propelled by a record $45 million in 24-hour trade volume.
Enzyme is a decentralized finance (DeFi) protocol designed for on-chain asset management and meant to empower investors to build, scale and monetize investment strategies that can be utilized by other members of the Enzyme community.
After a relatively quiet start to June, Enzyme began receiving more notice on Twitter beginning on June 6 with Messari analyst Jack Purdy pointing out that “even with prices down 40% from a few weeks ago Enzyme AUM are still close to all-time highs.”
While there were no significant developments for the protocol as the price began to rise significantly beginning June 4, the June 8 announcement that MLN would be added to Coinbase Pro appears to be the driving force behind the token’s recent surging price, demonstrating that the Coinbase bump still has the potential to move prices.
Starting today, inbound transfers for GTC, MLN & AMP are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Thurs 6/10 if liquidity conditions are met. https://t.co/wWYrUIXeRT
— Coinbase Pro (@CoinbasePro) June 8, 2021
Solana rebounds from its May 19 low
Solana (SOL), a layer-one proof-of-stake system capable of processing 65,500 transactions per second, is the second token that swiftly recovered from the May crash (TPS).
On June 2, the project gained traction with the announcement of the Metaplex NFT platform, which offers “a radically new approach to NFTs and NFT storefronts” on the Solana blockchain.
This announcement was followed by the introduction of a number of additional Solana projects, including the algorithmic decentralised loan and borrowing platform Solend and the decentralised, capital-efficient derivatives market Mot Finance.