After a very poor start to 2022, cryptocurrencies are beginning to show signs of a meaningful recovery. In the final week of March most coins closed in the green, and this momentum could continue. Here are the main reasons prices are rising:
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The period of uncertainty around a Federal Reserve rate hike has eased.
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Many investors who had been watching the market from the sidelines are starting to return.
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Institutions are increasingly viewing crypto as an asset class for diversification and hedging.
Among the participants in this rally, several coins have outperformed expectations. Below are a few notable examples:
Ethereum Classic (ETC)
With Ethereum scheduled to move away from the Proof-of-Work model soon, a significant portion of Ethereum miners have begun shifting to ETC. Over the past week the coin has risen by nearly 70%.
Data source: TradingView
At present ETC appears to have recovered much of the losses it sustained earlier this year and is showing a strong upward trend. Although there has long been positive buzz around this coin, some analysts did not expect such a rapid recovery. We forecast the potential for additional gains in the second quarter of the year.
Convex Finance (CVX)
The DeFi sector has played an important role in crypto’s growth story. 2021 was a breakout year for DeFi, and many optimists predicted even greater progress in 2022. DeFi tokens underperformed those expectations, and Convex Finance (CVX) fell well below its all-time high. Still, the DeFi space is showing signs of recovery, and CVX has climbed about 50% in the past week.
Zilliqa (ZIL)
Can you imagine a 150% jump in less than a week? A few weeks ago it seemed ZIL was losing momentum and struggling to find direction. However, renewed buying interest pushed the token sharply higher, and its rapid recovery over a single week surprised many observers.
Overall, the recent upswing reflects improving market sentiment and renewed participation from both retail and institutional investors. While volatility remains a defining feature of crypto markets, these short-term rallies highlight opportunities for selective gains. As always, investors should weigh risks carefully, diversify, and consider their investment horizon before making decisions.