In the world of cryptocurrencies, it’s not all doom and gloom. Despite the sector’s recent turbulence, two digital assets, Solana (SOL) and Cardano (ADA), are outperforming their peers in terms of risk-adjusted returns. As the overall crypto market cap teeters around the $1 trillion mark, these two contenders have caught the attention of savvy investors.
Data from crypto market analysis platform Kaiko shows that Solana and Cardano boast the highest year-to-date risk-adjusted returns among top altcoins, as measured by the Sharpe ratio. A Sharpe ratio of 1 or above is considered good, and both SOL and ADA have achieved a ratio of over 2, signaling lower risk relative to the reward for investors.
Trailing behind these two frontrunners are BNB (BNB), XRP (XRP), Polkadot (DOT), Polygon (MATIC), and Litecoin (LTC), all with a Sharpe ratio of above 1. On the flip side, meme-inspired tokens like Shiba Inu (SHIB) and Dogecoin (DOGE) scored below 1, indicating higher risk for the returns received.
Interestingly, while SOL and ADA both experienced losses in the past week, they followed similar price trends as DOGE and SHIB. However, in the last 24 hours, DOGE and SHIB saw slight gains, while SOL and ADA experienced minor drops.
For investors seeking low-risk, high-reward opportunities, Solana and Cardano continue to shine in the uncertain landscape of the crypto market. So, keep your eyes peeled and your portfolio diversified, as these digital assets show no signs of slowing down.