Bitcoin and other major cryptocurrencies are taking hits to their value but crypto tokens are going in the opposite direction. According to recent data, tokens like ICON and Wanchain have experienced a 20 to 40 percent rise in value. Further results show that Nano ICON and Dent as the three best performers in the cryptocurrency market as of August 26.
Most of the time, crypto tokens have followed the prices of Ripple and Ethereum. They respond to the rise and fall of their prices with a bit of extra movement whether going up or down. However, the trend changed recently when Ethereum went down in value and yet crypto tokens have persisted in rising in price.
The reason for ICON's surge in price is reflective of the latest move by the team behind it. They were planning to buy back $5 million worth of ICON tokens for this year. This demand has pushed the value of ICON up by 20 percent on the market – making it one of the better-performing tokens right now.
Another reason for the increased value is the new partnership between ICON and Kyobo, a South Korean insurance firm. The deal is for the development of blockchain technology for the use of the company.
In a statement, the ICON development team said
theloop has been recognized for bringing a practical use-case for blockchain technology in the insurance industry through the Smart Insurance Claims service. theloop will accelerate its efforts to build a next-generation insurance platform with Kyobo Life
Wanchain, another good performer on the market recently released its 2.0 client. This has smoothed out and streamlined operations. Wanchain is a fork of Ethereum and is more focused on running decentralized apps. The new client has raised interest in the token as a result.
Is It Sustainable?
With these developments on the token front, other tokens have been seeing some positive interest and a corresponding rise in value. The main question is whether this sustained growth with crypto tokens is going to last. Experts believe that the surge is not going to last because of the low volume of the crypto market.
The value of the market has dropped from $13 billion to just $10 billion because of losses experienced by Bitcoin. With the fall of Bitcoin value, experts believe the market could shrink even further and in doing so will take the token gains down with it.
