Why Are Investors Taking Profits in Cardano, Polkadot, and The Sandbox Today?
Amid January's broad-based rally in risk assets, certain cryptocurrencies have benefited more than others. Among the leaders in terms of year-to-date gains thus far are Cardano (CRYPTO: ADA), Polkadot (CRYPTO: DOT), and The Sandbox (CRYPTO: SAND), which have surged by roughly 50% or more in just a few weeks. However, as of 11:15 a.m. ET Wednesday, these three tokens had given up some of their gains. Over the prior 24 hours, they had declined by 5.6%, 4.8%, and 6.4%, respectively.
As is the case with most recent rallies, the moods of equity investors and those focused on digital assets appear to be closely aligned. The relatively high correlation between the two asset classes continued Wednesday, resulting in some profit-taking in these three cryptocurrencies.
Polkadot has seen strong developer interest to kick off 2023, becoming the leading blockchain in terms of development activity over the past month, according to crypto market intelligence platform Santiment. Accordingly, Polkadot's chart has been mostly up and to the right thus far this year.
Source Fool.com
