Polkadot Leads Altcoin Losses After Bitcoin Is Rejected at $52K

Markets saw a pullback on Tuesday after a relatively flat weekend.

AccessTimeIconDec 28, 2021 at 11:39 a.m. UTC
Updated May 11, 2023 at 4:45 p.m. UTC

Bitcoin failed to hold above $52,000 after briefly breaking through the resistance level on Monday, and slipped below $49,500 in early European trading hours on Tuesday, pulling the broader market lower.

Leading losses among the top 10 cryptocurrencies by market capitalization were Polkadot’s DOT tokens, which fell 8% in 24 hours after being a top gainer on Sunday. Others such as solana (SOL), cardano (ADA) and XRP averaged losses of 3.4%, while binance coins (BNB) gained 0.4%.

A catalyst for DOT’s upward price movement last week was the start of the second batch of parachain auctions on the Polkadot network. Parachains are distinct blockchains that run atop the main Polkadot network. Polkadot, however, has a limited number of openings available. To gain access, a parachain has to win a community-run auction that uses DOT to vote for slots, leading to increased demand for the cryptocurrency.

DOT surged to over $32 on Monday, but traders have since taken profits and the tokens exchanged hands for $28 in Asian trading hours on Tuesday. They are, however, still 20% higher than last Tuesday.

Prices slipped, falling below the 34-day moving average – a tool used to determine market trends using past prices – in Asian trading hours Tuesday. Failing to trade above the moving average indicates DOT’s decline from $54 highs in November is likely to continue.

DOT remain in a downtrend since November 2021. (TradingView)
DOT remain in a downtrend since November 2021. (TradingView)

Other big losers among large-cap cryptocurrencies were tokens of decentralized payments network Terra (LUNA) and Ethereum scaling solution Polygon (MATIC), with both sliding 7% in the past 24 hours.

Tokens of the two surged in the past week following favorable catalysts: decentralized finance (DeFi) activity rose on Terra as crypto investors bet on the network as the next DeFi play, while the launch of top Ethereum-based exchange Uniswap on Polygon saw demand for MATIC increase.

Ethereum rivals, gaming cryptos fall

Outside of the top 20, tokens of Ethereum rival blockchains took hits. Near (NEAR) and Cosmos (ATOM) – which surged last week as traders searched for the next ecosystem that could replicate Ethereum’s success – slid 8%, while Fantom (FTM) dropped as much as 9% in the past 24 hours, data from CoinGecko showed.

Gaming-related cryptocurrencies were another losing sector. Gala (GALA) tokens declined 7%, while fan-favorites Axie Infinity (AXS) and The Sandbox (SAND) both lost 4.4% following record surges in the past few months.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.