November was a tough month for cryptocurrencies. The grandfather of cryptocurrencies, Bitcoin (BTC), hit an all-time high at the beginning of the month, only to drop nearly 20% in the following weeks. Unsurprisingly, many other cryptocurrencies have followed suit.
Several factors brought the market down, including new tax reporting rules, news of another COVID variant, and various regulatory moves around the world. Additionally, cryptocurrencies are notoriously volatile and new highs are often followed by corrective lows.
We can expect more volatility - and possibly more price falls - in December, especially if there are further regulatory changes. Personally, I am still wary of short-term decentralized financial tokens, as I want to see what impact the new regulation will have.
Some investors may see further price falls as a good time to go buy Bitcoins and Altcoin to the downside and collect tokens like Solana (SOL), Avalanche (AVAX) and Cosmos (ATOM) that have already made big leaps forward. Others may want to top up old favorites like Bitcoin, Ethereum (ETH), and Cardano (ADA). For many others, it's about resisting the downside and avoiding any panic selling.
With all of that in mind, here are two altcoins to keep on the radar in December.
1. Enjin (ENJ)
We talked a lot about Metaverse tokens in our recent monthly altcoin articles to watch, as this is a key trend for cryptocurrencies right now. Sandbox (SAND) and Decentraland (MANA) have both increased more than 500% since the beginning of October, according to CoinMarketCap data. Enjin has risen nearly 170% over the same time period.
It is wise to think carefully before embarking on the latest craze, especially in cryptocurrency, where speculation is the order of the day. But Enjin is an interesting long-term metaverse project, as the platform allows users to create and trade non-fungible tokens (NFTs). NFTs are unique digital collectibles in which ownership information is encoded in the token and plays an important role in how people own things in these virtual worlds.
It is very early for the metaverse and we do not yet know how it will develop. But should it take off, NFTs will be a central element. Since Enjin makes it easy for people to store and trade their NFTs, no matter what metaverse or game they bought them in, it's a cryptocurrency I'll pay attention to.
2. Chiliz (CHZ)
Chiliz is a cryptocurrency intended for sports enthusiasts. Fans can get involved with their favorite teams by purchasing fan tokens through its socios.com platform. Token holders can vote on decisions like celebration songs, captain's armband messages, and other social media activities. They can also win prizes, such as VIP behind-the-scenes access, signature memorabilia, and meet and greet experiences.
One of the reasons Chiliz is interesting right now is its new NFT offering. The first live in-game NFT drop occurred during a football match between AC Milan and AS Roma. Live NFTs are created based on gameplay and these limited edition NFTs are already proving popular.
Another reason to keep Chiliz in the crosshairs is that it is well positioned as cryptocurrency exchanges move towards sports sponsorship. Crypto.com Coin (CRO) leapt this month at the news that it acquired the naming rights of the Staples Center. Additionally, Binance recently launched a token platform for sports enthusiasts.
