Why Siacoin, IOTA, and Cardano Spiked More Than Bitcoin Yesterday


By Gaurav S. Iyer, IFC Published : March 21, 2018

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Why the Crypto Market Surged Yesterday

As investment dollars find their way back into cryptocurrencies this week, some assets are outperforming industry leaders like Bitcoin. Cardano, for instance—a favorite of Weiss Cryptocurrency Ratings—spiked more than 35% yesterday.

Also on the list of big winners are IOTA and Siacoin.

Before we get to the specific tailwinds driving these currencies, let’s take a closer look at the broad-based recovery in cryptocurrency markets. What started the recovery?

The single most important factor was the G20 summit. When investors believed that an international crackdown was on the horizon, there was a massive sell-off that cost even the biggest cryptocurrencies 40% of their total value.

However, the narrative changed yesterday. A letter from the G20’s financial elite surfaced, saying that “crypto-assets do not pose risks to global financial stability at this time.” (Source: “G20 watchdog focuses on rules review, holds fire on cryptocurrencies,” Reuters, March 19, 2018.)

It was a relief to hear this from world leaders.

So much nonsense is spouted about cryptocurrencies on a daily basis that it’s nice to hear things put into context. Yes, there is a lot of volatility in digital assets, but that doesn’t mean it’ll burn capital markets to the ground. Cryptos are only one percent of global GDP!

I know what you’re thinking.

How much difference can one letter make? The answer is a lot, it turns out. Because this is more than just a letter—it is a formal document about all financial obstacles facing G20 nations.

It is written each year by the head of the Financial Stability Board (FSB), which, in this case, happens to be Governor Mark Carney from the Bank of England. All the politicians, regulators, and bankers in attendance at the G20 receive the letter.

As you can imagine, investors are pretty happy with Carney’s measured response to crypto volatility. His words erased most of the fear and uncertainty around an international crackdown, which in turn caused cryptocurrency prices to skyrocket.

The Big Winners: ADA, SC, IOTA

Three of the biggest winners were Cardano (ADA), Siacoin (SC), and IOTA (MIOTA).

If you’re wondering why these cryptos are leaving Bitcoin in the dust, look to both their market size and purpose. Each of them is much smaller than Bitcoin, which has a market capitalization of $151.0 billion.

More importantly, Cardano, IOTA, and Siacoin have specific use-cases that can be applied to specific problems. (More on that below.) Bitcoin, by comparison, is an ideological temper tantrum about the global financial system.

Cardano

Cardano prices were up as much as 35% yesterday. That rally continued to this morning, adding another 12.3% today to bring the Cardano to USD exchange rate to $0.215262, at the time of writing.

cardano price chart

Chart courtesy of CoinMarketCap.com

If you’re new to Cardano, just remember that it bears greater resemblance to Ethereum than Bitcoin. It is a platform for decentralized applications. But that’s where the comparisons end, according to Cardano.

The eighth-largest cryptocurrency claims it has a richer academic heritage than Ethereum, not to mention greater transparency. It releases the results of its audit, weekly technical reports, and an overview of its block distribution online.

Keeping this emphasis on transparency in mind, it’s hard not to see the increase in Cardano prices as investors bet on slower, more thoughtful blockchain projects.

Cardano Price Forecast: $1.00 by the summer of 2018.

IOTA

Unlike most cryptocurrencies (ahem, Bitcoin), IOTA is focused on one particular application: a distributed network for Internet of Things (IoT) devices. Tech giants like Microsoft Corporation (NASDAQ:MSFT) and Google are fighting over this space, which means that IOTA has no shortage of customers to sell to.

iota price forecast

Chart courtesy of CoinMarketCap.com

In fact, the IOTA organization recently signed a partnership of sorts with 20 multinationals—including Microsoft Corporation, Cisco Systems, Inc. (NASDAQ:CSCO), Fujitsu Ltd (TYO:6702), and Accenture Plc (NYSE:ACN)—and agreed to help transform the city of Taipei into a smart city.

These are real-world projects. IOTA isn’t selling the dream of a global digital currency, but rather aiming to create a new infrastructure for connected devices.

Investors clearly find this sort of tangible goal appealing in the wake of crashing crypto prices, which is why IOTA surged by more than 27% yesterday.

IOTA Price Forecast: $5.00 in the next two quarters.

Siacoin

Since we’re on the subject of focused blockchain projects, it’s hard to ignore Siacoin, which skyrocketed as much as 29.7% yesterday.

siacoin price chart

Chart courtesy of CoinMarketCap.com

Siacoin wants to put all the vacant storage capacity in the world to good use. It is like IOTA in the sense that regular people won’t see it on a day-to-day basis, but it will add real value to businesses and the Internet as a whole.

You might not have seen this surge in Siacoin prices because SC is way down on the list of biggest cryptocurrencies. It is #33. But don’t let that fool you; there’s a tremendous amount of interest in this little cryptocurrency.

Siacoin Price Forecast: $1.00 by the end of 2018.

Cryptocurrency Latest News Today

While it was refreshing to see cryptocurrencies booming yesterday, the wheel doesn’t stop turning. Today, the Organisation for Economic Co-operation and Development (OECD) asked G20 leaders to build a tax framework for digital assets.

There’s no telling what the G20 will do if they can muster up the energy to do anything at all, but don’t expect the OECD to wait around for a response. It is itself a consortium of developed nations, capable of building a framework all on its own.

Going forward, we expect more regulation to constrain the marketplace. As such, it seems like investors are making a wise move in switching their bets to more practical cryptocurrencies like Cardano, Siacoin, and IOTA.





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