• The cryptocurrency market soared in January with the biggest winners tokens that fell by the most last year.
• Layer 1 blockchain Aptos‘ APT token was the biggest winner among 160 assets in the CoinDesk Market Index, surging 387% this month.
• Gaming- and metaverse-affiliated tokens including Gala Games‘ GALA token and Decentraland’s MANA token gained 233% and 149%, respectively.
The beginning of 2021 has been an exciting time for cryptocurrency markets, as a broad-based rally has seen some of the year’s biggest losers rise to the top of the leaderboard. In particular, Layer 1 blockchain Aptos’ native APT token has seen remarkable gains, surging 387% this month according to the CoinDesk Market Index.
Aptos is a blockchain-based platform that seeks to enable the development of decentralized applications, and its token is used to power transactions on the network. The token’s meteoric rise is a sign of renewed investor interest in the space, as the cryptocurrency market continues to recover from its prolonged bear market of 2022.
The January surge has been broad-based, with many gaming- and metaverse-affiliated tokens also enjoying strong gains. Gala Games’ GALA token and Decentraland’s MANA token both saw impressive returns of 233% and 149%, respectively. These tokens have become increasingly popular as the metaverse continues to grow, and investors are seeing them as a way to gain exposure to the sector’s potential.
Martin Leinweber, digital assets product specialist at MarketVector Indexes, said of the rally: “It’s not unusual to see the hardest-hit coins rallying the most when the market turns bullish. Those smaller altcoins have a higher beta to bitcoin on the way up and on the way down.”
This sentiment was echoed by other analysts, who noted that the rally was a sign that investors have become more confident in digital assets after years of bearishness. This confidence has seen bitcoin and ether, the two largest cryptocurrencies by market capitalization, rise about 40% and more than 60%, respectively, this month.
The January surge in the cryptocurrency market has come at a crucial time for the sector, as it looks to regain the attention of mainstream investors. With such broad-based gains, it appears that investors are embracing the sector and its potential once again. It remains to be seen if this enthusiasm will last, but for now, it’s been an exciting start to the year for the cryptocurrency market.