In an unusual move from general market dynamics, Threshold Network (T) is leading altcoin momentum with 24-hour growth of 15%, per data from CoinMarketCap. With its price pegged at $0.04581, the digital currency is now branded as one of the biggest beneficiaries of the growing hype surrounding the emergence of smart contract capabilities on the Bitcoin blockchain.
Threshold has made its mark since the start of the year as it has impressed investors by drawing on the positive capabilities of the two protocols that merged to form the current chain. These two protocols include Keep Network and NuCypher.
Investor sentiment is notably responsible for certain movements in the price of an asset; however, what is sustainable is a sentiment driven by actual positive events surrounding the asset. In the case of Threshold Network, not much of a positive trend has been observed in its ecosystem in the past few days to justify the ongoing rally.
The core team members are, however, participating in the ETHDenver conference and will get an opportunity to meet and showcase its innovative solutions to investors and partners that can help it get the needed leap.
Note to investors
There are a lot of raging calls from top analysts to exhibit caution, and besides meme coins, other low-cap altcoins also have higher volatility ratings that must be taken note of.
One crucial note is that the Threshold Network is still an evolving protocol with an ecosystem that is still building up. As such, the utility of T is still at a comparatively low ebb and might impact the stability of its price in the near future.
Additionally, Threshold Network's fundamentals hinge on making Bitcoin more versatile via DeFi and NFT capabilities. There are numerous protocols pushing these fundamentals, bringing high competition to a segment whose massive adoption is still uncertain.
Lastly, general market sentiment is not favorable to highly volatile tokens in the long term, a situation that has stirred the downfall of meme coins like Bonk.