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Here's Why Polygon, Curve DAO Token, and Harmony Skyrocketed This Week

By Keith Noonan – Oct 30, 2021 at 8:20AM

Key Points

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What does Ethereum have to do with the explosive altcoin surge?

What happened

The overall cryptocurrency market has enjoyed strong bullish momentum across October's trading. Many Ethereum (ETH 0.77%)-connected altcoins have posted particularly impressive gains over the last week in conjunction with momentum for the blockchain and its token.

Polygon (MATIC 4.12%), Curve DAO Token (CRV 5.88%), and Harmony (ONE 5.59%) were among the tokens to post big gains across the stretch. As of 6 a.m. EDT on Saturday, the respective cryptocurrencies had climbed roughly 26%, 45%, and 22.5% over the previous seven days of trading, according to data from S&P Global Market Intelligence. Ethereum's Ether token was up roughly 8% across the period. 

A book, an astronaut toy, and a miniature rocket.

Image source: Getty Images.

So what

Usage of the Ethereum blockchain hit a record high over the last week, and increasing engagement for the network and pricing momentum for the Ether token appear to have spurred gains for Polygon, Curve DAO Token, and Harmony. In addition to the Ethereum-powered pricing surge, the gains for Polygon's token may have been partially driven by the development team's investment in Colexion -- Asia's biggest non-fungible-token marketplace.

Curve DAO Token is a cryptocurrency supporting the Curve blockchain, which is a network on the Ethereum blockchain that's built for stablecoin trading and staking. With Ethereum seeing rising adoption and the value of its Ether token climbing to a record high, Curve DAO Token is enjoying gains thanks to the momentum.

Harmony's token is also benefiting from the Ethereum surge. Harmony is a blockchain for deploying and scaling applications on Ethereum and other networks.

Now what

Ethereum's rising tide is lifting many boats in the cryptocurrency space. If the network continues to see rapid adoption, there's a good chance that Polygon, Curve DAO Token, Harmony, and other Ethereum-related blockchains and cryptocurrencies could see their valuations climb significantly above current levels. However, investors should also keep in mind that a worsening outlook for Ethereum or significant pricing pullbacks for Ether could cause even bigger sell-offs for other crypto tokens. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ethereum. The Motley Fool has a disclosure policy.

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