The third quarter was not a pleasant time for the market as a whole. However, certain altcoins have created their own niches and have risen to become the top bulls. While Bitcoin and ETH didn’t see any major price movements in the third quarter, altcoins like SOL and ADA saw several separate rallies after the larger market deemed them “decoupled”.
The DOT rallies are considered independent by many as prices rose 150% in August and September due to high expectations from the community. When these altcoins “escalated” towards the end of the third quarter, institutional interest also peaked.
1 Day DOT Price Chart | Source: TradingView
Favorite coin of institutional investors
In the second quarter, the organization was generally very interested in smart contract platforms.
In the third quarter, DOT also became the most commonly held asset by investors.
Number of companies with assets in the third quarter of 2021 | The source: Messari
SOL has the highest circulating market capitalization of the top investment investments. It is noteworthy that the ROI of SOL at 9837.5% is also high and works stably all year round.
On the other hand, the price of DOT continues to rise given the anticipation of the Parachain slot auction. At the time of writing, DOT is experiencing high volumes of social media engagement despite a 20% drop in prices over the past week.
Social Volume (pink) and DOT Price (red) | Source: Sanbase
In addition, other news also contributed to the price increase. For example, DFG Group, which manages $ 1 billion in assets, has announced it will support 300,000 DOT tokens ($ 12.65 million) for the Astar network’s Parachain auction.
Undoubtedly, the development of SOL and DOT in the last quarter has aroused great institutional interest. This is also an important factor in the speed of network development.
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After Bitcoin fell nearly 9% on November 16, neither DOT nor SOL held up as expected. One possible reason is the lack of euphoria among private investors.
In particular, DOT’s trading volume has not matched the gains of early September despite the recent ATH hit.
The case of SOL is no different. While the top 5 coin recorded the highest trading volume at the beginning of September, the trading volume has also been average since then.
As a result, while both have maintained volatility amid relatively bearish markets, their prices have remained somewhat affected. In fact, the price of SOL fell 17% from last week while DOT fell 19% over the same period.
So far, SOL wins based on market sentiment, while DOT rallies are more market-focused. While both altcoins mature with institutional inflows, they are not yet fully independent.
As SOL and DOT become the new institutional investor favorites, it will be some time before the two can separate from the top assets.
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According to AMBCrypto