Tag Archives: What happened

Why Solana, Cosmos, and Algorand Are Seeing Wild Trading Action Today

AltcoinsSolana(CRYPTO:SOL),Cosmos(CRYPTO:ATOM), and Algorand(CRYPTO:ALGO) are up a respective 3.9%, 24.75%, and 46.77% in the past 24 hours, as of 2:30 p.m. EDT. They are now trading at $186.17, $26.61, and $2.44 apiece, respectively. Yesterday, regulatory scrutiny surrounding influencers promoting risky altcoins had led to a broad sell-off in the cryptocurrency market, causing significant levels of market volatility when mixed in with new project developments.

A graph showing wild asset price trading action. g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/642581/gettyimages-1308271745-1.jpg&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/642581/gettyimages-1308271745-1.jpg&w=2000&op=resize 2000w”/>

Image source: Getty Images.

So what

Solana had the greatest level of variance, with prices actually surging to $215 per token at 10:19 a.m. EDT before falling back down to $184.77 as of 3:23 p.m. EDT. Earlier today, J.P. Morgan issued a stark warning to altcoins, namely Solana, over record levels of investor mania. Solana is a popular decentralized finance (DeFi) token that traded as low as $2 at the beginning of the year.

As for Cosmos, on Sept. 8, internet of blockchain and decentralized application (dapp) platform Axelar joined hands with decentralized exchange Pangolin. The move would enable the latter to access assets from the Cosmos blockchain and others. Before then, the network had expanded to creating DeFi ecosystems and forming cross-chain bridges with other blockchains.

Meanwhile, money is pouring into Algorand after El Salvador announced it would develop blockchain infrastructure using its network earlier this week. On Sept. 7, the country became the first in the world to adoptBitcoin as legal tender. Soon afterward, Starbucks, Pizza Hut, and McDonald’s in the country all began accepting the digital currency. So investors are clearly banking that El Salvador’s partnership with Algorand could lead to greater utilization for the token. What’s more, Algorand is currently backed by famous seed-money start-up accelerator Y Combinator.

Now what

With respective market caps of $6 billion and $12.4 billion, Cosmos and Algorand may seem overvalued, but there are some fundamentals backing those prices. One cannot say the same for Solana. Even though it has around 340 projects in development, not all of them have reached the commercialization phase. That’s compared to nearly 3,000 dapps already available on the Ethereum blockchain. Meanwhile, Solana’s market cap has surged to $54 billion due to investor euphoria. So it’s best to take profits on SOL while staying on the lookout for developments from ATOM and ALGO.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Why Green Thumb Industries Is Falling This Week

On general marijuana stock malaise, Green Thumb Industries (OTC:GTBIF) was down more than 13% late Friday compared to its closing price a week ago Friday.

So what

Unless there is a standout development for a particular weed stock, as a group their prices often move in concert. That’s been the dynamic this week, with both top operators and smaller rivals generally declining.

Smoke emanating from a cannabis flower.g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/642670/a-cannabis-bud.jpg&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/642670/a-cannabis-bud.jpg&w=2000&op=resize 2000w”/>

Image source: Getty Images.

As with other weeks and even months this year, there wasn’t much industry-shaking news affecting weed over the past few days.

And that could very well be the problem. The Cannabis Administration and Opportunity Act has been introduced in the U.S. Senate but hasn’t yet moved through the pipeline (and likely won’t, given most Republicans’ resistance to drug law reform).

Meanwhile, in contrast to the dynamic earlier in 2021, state legislatures don’t currently seem to be in a hurry to flip the switch on marijuana legalization.

Another new drag on the cannabis industry might be a study published Tuesday in The Canadian Medical Association Journal that indicates young marijuana-using adults suffer from heart attacks more often than people in the general population.

Now what

Because of this, Green Thumb stock is being unfairly punished by investors.

The company is actually doing quite well. Its second-quarter 2021 results reveal that it was profitable — a rare feat among weed companies these days — with a bottom-line surplus of over $22 million, on revenue that grew 85% year over year to nearly $222 million. Meanwhile, Green Thumb continues to add scope and scale with new dispensaries, and still has a decent-sized pile of cash to grow even larger.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.