Cryptocurrency markets, led by blue-chip assets, are witnessing positive trends driven by macroeconomic factors such as rising US stocks and a decline in US government bond yields and the US Dollar Index (DXY). These moves in traditional asset classes follow the belief among investors that the Federal Reserve will initiate interest rate cuts in early 2024, following a dovish policy announcement on Wednesday.
This overall optimism has helped the crypto market recover, overcoming a brief mid-session dip triggered by stronger-than-expected US retail sales data. Bitcoin is currently trading just above $43,000, with bullish sentiments aiming for a retest of yearly highs around $45,000, reflecting a 0.5% increase in the past 24 hours. Ether (ETH) has risen by approximately 1.8%, reaching just under $2,300, while Solana (SOL), XRP (XRP), and Dogecoin (DOGE) are all trading in positive territory.
A notable underperformer is Avalanche, facing pressure due to profit-taking following recent strong gains. Despite this, the outlook for major cryptocurrencies remains positive towards the end of the year. Traders seeking quick exponential profits may continue exploring the highly illiquid and volatile markets of shitcoins and meme coins.
On Thursday, some low-cap coins on Uniswap, the largest decentralized exchange (DEX) in the Decentralized Finance (DeFi) industry, have shown strong performance:
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Hord ($HORD): Claiming to be a social DeFi protocol on Ethereum, enabling monetization of strategies for key opinion leaders and investment in tokenized portfolios, $HORD has surged over 30% in the past 24 hours. However, traders should exercise caution due to low trading volumes and some concerning aspects revealed in DEXTools' security audit.
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Kenshi ($KNS): Positioned as a versatile and user-friendly platform for crafting tailor-made blockchain solutions, $KNS has witnessed a more than 20% increase in the past 24 hours. While sustained momentum is observed, low trading volumes and positive aspects in its smart contract, according to DEXTools' security audit, provide a balanced perspective.
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Astra DAO ($ASTRADAO): Functioning as a decentralized and non-custodial automated crypto asset allocator on Ethereum, offering practical access to crypto-oriented investment strategies, $ASTRADAO has seen a 25% rise in the past 24 hours. Potential investors should be cautious as the token has three smart-contract alerts, according to DEXTools' security audit.
For those seeking alternative high-risk, high-reward investment strategies, participating in crypto presales, where tokens of emerging projects are bought to fund their development, could be considered. While shitcoins present potential returns, they also carry significant risk, emphasizing the importance of careful evaluation before investment.
