The cryptocurrency sector is one that’s known for being highly volatile. However, for Cronos (CRYPTO:CRO), formerly Crypto.com Coin, this volatility has been rather impressive of late.
Since mid-March, Cronos has seen token price appreciation of approximately 30% at the time of writing. This strong move comes alongside other altcoins that have once again found momentum.
Accordingly, there are some macro catalysts driving the entire sector right now. With this backdrop, it’s perhaps unsurprising to see Cronos take off.
That said, there are a couple token-specific catalysts investors are watching with this token. Let’s dive into what’s driving interest with Cronos right now.
Cronos stands out from other EVM blockchains Cronos is an intriguing token to consider, not only for its tokenomics and fundamentals, but for the projects being built on this network. The network’s EVM (Ethereum Virtual Machine) testnet, also named Cronos, has recently been launched. This testnet is powered by Ethermint, which allows for the porting of smart contracts and applications from other EVM-compatible blockchains.
In other words, Cronos allows for interoperability between various ecosystems. In the crypto world, most blockchains don’t talk to each other. Accordingly, projects spanning multiple blockchains are hard to come by. However, this move from Cronos could make this platform one of the go-to options in the DeFi world.
Additionally, Cronos is built using IBC, a protocol enabling this interoperability. As Cronos-native assets grow, investors expect to see the value of this token appreciate in kind. At least, that’s what the bulls are hoping for right now.
Solid growth potential, high staking APY, and other advantages of picking CRO Thanks to the extensive marketing campaigns of its parent organization, Cronos is a token that’s gained significant attention of late. Accordingly, investors looking for a token with hype certainly have one to consider in CRO.
That said, there are other reasons why investors like Cronos. This token’s staking capabilities are among the key benefits investors looking at large-cap tokens consider when comparing Cronos to its peers. As of February, staking rewards for Cronos sit at around 10%. These rewards are meaningful and are among the best in the industry.
Additionally, individuals holding CRO tokens may qualify for lower trading fees on the Crypto.com platform. For traders, this is a big deal and yet another reason to hold these tokens.
Bottom line Like any crypto project, Cronos certainly carries risk. In fact, this token may have a higher risk profile than other large-cap projects due in part to how fast this token has ascended in the market cap rankings.
That said, Cronos and the Crypto.com platform have surged in value for good reason. This is a token that’s on my watchlist, and I’d recommend investors keep an eye on this token moving forward.
The post 2 Key Reasons Investors Are Watching Cronos Right Now appeared first on The Motley Fool Canada.
Fool contributor Chris MacDonald owns Ethereum. The Motley Fool owns and recommends Ethereum.