“Crypto Bowl” Ads, Partnerships Aren’t Enough to Drive Certain Tokens Higher Today

What happened?

Today’s price action in the crypto world has been relatively muted, following the highly anticipated “Crypto Bowl,” which saw many cryptocurrencies take center stage at yesterday’s Super Bowl. Two of the key tokens investors were watching on the advertising slate were Dogecoin (CRYPTO:DOGE) and Crypto.com (CRYPTO:CRO) Coin. Unfortunately for investors, as of 12:20 p.m. ET, these tokens were down 3.9% and 5.8%, respectively.

Dogecoin initially ran higher heading into the Super Bowl, with fans expecting some sort of positive announcement from McDonald’s about the potential for Dogecoin to be accepted as payment. This speculation was spurred by previous tweets between the iconic fast-food franchise and Dogecoin supporter Elon Musk. However, no such announcement came.

For Crypto.com Coin, an ad featuring LeBron James piggybacked on a previous partnership initiative for Web3 development education. That said, investors appear to have wanted to see more. 

Metaverse-related crypto project The Sandbox (CRYPTO:SAND) also sunk 1.3% over the past 24 hours as of 12:20 p.m. ET, as investors shrugged off a high-profile partnership announcement with Hong Kong-based entertainment resort developer Ocean Park.

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So what?

This year’s Super Bowl has been often referred to as the “Crypto Bowl” in a similar fashion to the “Dot-Com Bowls” of the past. Investors looking for exciting speculative catalysts were watching eagerly yesterday, looking to trade these tokens, which happen to be open for trading 24/7.

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For a number of tokens such as Dogecoin, a lack of news flow, despite various teases that suggested a crypto partnership with McDonald’s could be in the books, took this token on a volatile ride lower immediately during the game. Crypto.com Coin followed suit, while other high-risk, high-upside cryptocurrencies like The Sandbox dipped in sympathy before recovering most of these losses.

The bar was seemingly set very high for these cryptocurrencies, with any sort of previously priced-in enthusiasm being sucked out of the market in short order.

Now what?

The price action for these three tokens has been interesting to watch over the past 24 hours. Specific tokens that saw outsized hype heading into yesterday’s game have underperformed many other top cryptocurrencies, which are actually trending higher today. As a matter of fact, the entire crypto sector has moved 0.9% higher over the past 24 hours, as of 12:20 p.m. ET. 

Thus, perhaps the rotation away from more speculative, catalyst-driven tokens into more stable, “established” cryptocurrencies is still underway. It’s also unclear as to whether investors believe that sustained hype can drive valuations of certain meme tokens higher on a consistent basis, as in previous rallies last year.