With the market trading in red today pretty much all coins including Bitcoin and Ethereum are falling. However, there are some coins that made excellent gains in the last 2 months which are now facing huge price falls as well.

Which alts though?

Solana, Polkadot, and Algorand were three altcoins that successfully rallied between July and August. Polkadot rose from $12.34 all the way to $34.45 registering a 214.33% growth. Similar gains were observed for Algorand as the coin breached $2 and marked a 230.26% rise. 

The most gains were seen by Solana holders though mainly because the altcoin shot up 713.94%. An increase this high was the result of the NFT hype which took it up from $26.68 to $191.07

Solana’s 713% rise | Source: TradingView – AMBCrypto

In fact, Solana and Algorand even registered new all-time highs during this time period. But each of these coins is now observing significant price falls as well. 

In the last 24 hours ALGO fell by 15.26%, DOT came down by 14.37% and SOL lost 16.8% of its price as of press time.

A huge reason behind this fall is also their exhausted momentum since even after the September 7 fall, DOT and ALGO witnessed another price rise before they finally hit a slowdown.

Algorand’s 15.26% drop | Source: TradingView – AMBCrypto

Owing to this investors are possibly getting rid of their holdings in both spot and derivatives markets. Sell volumes at the time of this report have increased and liquidations rose to millions for all 3 altcoins. Since SOL gained the most, it lost the most as well and its liquidations touched $25 million.

Solana liquidations at $25 million | Source: Coinalyze – AMBCrypto

Can Bitcoin save them?

Well since Bitcoin’s price movement commands the market’s movement it is obvious that BTC needs to reduce losses first. But more importantly, these assets’ correlation to Bitcoin will determine how much they will be affected by BTC. Right now Algorand is at the lowest at 0.57, followed by Solana at 0.7, and at the highest is Polkadot (0.88)

However, surprisingly, investors are most positive about Algorand of all three hoping for a recovery soon.

Investor sentiment | Source: Santiment – AMBCrypto

Once Bitcoin and Ethereum change their movement, other coins would follow suit. And that’s when some recovery can be expected.

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Source: https://ambcrypto.com/solana-poladot-algorand-what-is-the-bitcoin-effect-on-these-altcoins

Overview

• Total spot trading volume at $598.4 million, the 30-day average is $1.36 billion.
• Total futures notional at $223.4 million.
• The most traded coins were, respectively, Bitcoin (-2.2%), Ethereum (-3.1%), Tether (0%), Solana (-9.9%), and Cosmos (+8.8%).
• Cosmos continues its hot streak, up 8.8%. Also strong returns from OMG (+10%).

#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset

The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (September 20 2021)



Figure 2: Mid-size trading assets: (measured in USD) (September 20 2021)

###########. Daily Returns. #################################################

Daily Returns %

Figure 3: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (September 20 2021)

###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

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Source: https://blog.kraken.com/post/11070/kraken-daily-market-report-for-september-19-2021/

Key takeaways

• Cardano, having launched Alonzo, now aims to deploy Hydra.
• Hydra is a layer 2 scaling solution that will make the real-world application of Cardano possible.
• Development of Hydra to be discussed during Cardano Summit 2021.

There are quite a number of exciting developments happening in the Cardano network. The Alonzo upgrade that happened recently was a significant milestone in the Cardano journey. With it, the network can deploy base-level scripting capability for smart contracts that will, in turn, enable further innovation and network development. 

Having achieved this feat, the next milestone the network is aiming to reach is the deployment of Hydra, a key layer-2 solution to further improve Cardano’s scalability by layering a new protocol on top of the existing layer 1 blockchain. According to Charles Hoskinson, Hydra is already in development on the Alonzo hard fork. 

In an explanatory video, David Orr of IOHK asserts that while Cardano can and does change transaction fees to balance costs, it cannot keep transaction costs low enough for micro-payments to be feasible with just its base layer. He notes that Cardano cannot also handle storage problems that will arise from the growing storage of transaction history, on just its layer 1. Hence the necessity for Hydra.

With Hydra, the network aims to maximize throughput and minimize latency while incurring low to no costs, and greatly reducing storage requirements. It will do this by providing a more efficient means of processing transactions off-chain for a set of users while using the main-chain ledger as the secure settlement layer. This will also ensure that Hydra keeps security guarantees while remaining loosely coupled to the main chain. 

While many speculate that the deployment of Hydra will see the blockchain reach a throughput of millions of transactions per second, the developers at IOHK have stated that the figures are just aspirational targets and may not be the actual figures.

“Terms like ‘one million TPS (transactions per second)’ have been used before. It is a bold number, and while this remains as an aspirational target, the ultimate goal of any system is the flexibility to grow capability with demand.” 

However, they remain optimistic that the addition of an increasing number of Hydra on the network will improve user experience on the entire network.

“In principle, by adding increasing numbers of Hydra heads to the system, arbitrarily high throughput can be achieved by the system as a whole.”

Currently, the development team is focused on building the hydra-node and the Hydra Head protocol until it becomes “a solid and stable foundation for the community (and us!) to build real-world applications.” It is expected that Hydra development will also be a key subject of discussion at the Cardano summit 2021 taking place between September 25 and 26.

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Source: https://zycrypto.com/major-blockchain-scalability-coming-to-cardano-thanks-to-the-incoming-hydra-upgrade/