- A sudden and sharp rally is visible in the price of the Radicle crypto at the moment
- The remaining cryptoverse continues to be subdued, with the total market cap under US$1 trillion
- Bitcoin and Ether have pared most of the gains they registered over the past few days
Does every rally or drop in the price of any cryptoasset owes itself to a valid reason? Bitcoin is dropping this year, and although there have been a few major blows like TerraUSD’s fall, no event justifies Bitcoin losing more than half its value so far.
At the same time, the startling rise of Bitcoin and altcoins like Axie Infinity and Solana in 2022 seems to have been triggered without any solid reason. Mostly, the crypto market is said to be driven by sentiments and the same sentiments seem to have ushered in a stunning rally in an altcoin named Radicle (RAD). What exactly does Radicle do in the blockchain-cryptocurrency space, and what is the logic behind its current surge? Let us explore.
What exactly does Radicle do?
The phrase that Radicle uses is “peer-to-peer stack for building software”. It projects itself as a participant in Web 3.0 -- the so-called decentralised version of internet -- with support for collaboration on code development.
Radicle boasts no centralised control of any entity and zero censorship. It claims to provide code sharing services without the interference of any third party. By one measure, it is something built on Git, with a cryptoasset at the heart of all arrangements. Smart contracts in code sharing, with the help of Ethereum, have been introduced by Radicle’s on-chain services.
It is inviting developers to build decentralised platforms that can be owned by the builder. Users can sponsor projects, and communities can be funded by floating digital assets like non-fungible tokens (NFTs).
RAD serves as the native governance token of the Radicle ecosystem. This means the token makes the ecosystem decentralised and owned by community members.
As of writing, the market cap of the token is nearly US$120 million, with a surge of almost 100% over the past few hours. The price per token has soared to nearly US$3.8 as against under US$2 only a few hours back. The 24-hour trading volume of the RAD token is up more than 350%, as of writing.
Data provided by CoinMarketCap.com
What’s fuelling the surge?
There is nothing concrete that can justify the appreciation of the RAD token in a matter of a few hours. There has been no recent listing. Binance listed the RAD token in October last year, and this listing did appreciate the token’s price. The only other major event is a recent report about the infusion of capital by VC firm NFX in multiple crypto projects including Radicle.
For now, the rally in the Radicle token does not seem to have been triggered by a major event, and it comes at a time when the total market cap of the cryptoverse has again dropped under US$1 trillion.
The surge in the code collaboration blockchain project is being termed by some as a pump. It is notable that the RAD crypto started this year at US$10, and it has since remained highly volatile. Due diligence by crypto enthusiasts, amid this sudden surge, is advised.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.