Leading cryptocurrencies Bitcoin and Ethereum are no longer leading the crypto markets. Lesser-known digital tokens have taken over.
Cardano is currently the third-largest cryptocurrency, with gains doubling this month. Digital token Avalanche is also on the rise – tripling in August. Binance has also surged.
There is no clear explanation as to what is driving these prices. However, some investors and analysts suggest that people are now switching from established tokens to newer tokens. Other experts believe that the extremely low prices are the main reason why investors are spending a lot of money on lesser-known digital tokens.
Nonetheless, Cardano continues to be driven by its track record and major technological advancements, leading to an upswing in trading.
If you want to find more details about Cardano and why analysts say it could outperform well-established cryptocurrencies like Bitcoin and Ethereum, download for free our companion app. The Born2Invest business news mobile app brings you the latest market updates so you can stay on top of what matters to you.
Enthusiasm for cryptocurrencies
Looking at the growth of crypto companies or their overall trading volume, it’s easy to see that the industry is generating a lot of excitement.
The founder of online exchange eToro, Yoni Assia, calls this excitement a “generational buying moment.” He says it’s inspired by the confluence of events – token extremely low prices and massive stimulus packages issued during the pandemic.
Some of that financial aid was arguably invested in cryptocurrencies.
According to a recent poll conducted by Harris Poll for Yahoo Finance, about 15% of Americans bought cryptocurrencies with the first two “stimulus checks.”
Inflation has also played a crucial role in helping lesser-known digital coins take the lead in digital markets. When you put all this information together, it becomes clear what is leading so many people to different types of investments.
More crypto trading app downloads
More and more people are expected to invest their money in other easily accessible digital assets.
According to App Annie, a mobile data and analytics provider, Coinbase Global Inc. ranks as the 11th most downloaded financial app on Apple devices. Last August, it ranked 23rd.
Younger generations are responsible for this. It’s no surprise they’re drawn to crypto – the Federal Reserve has always been accommodating. And the U.S. government has been busy with other things.
So far, the main focus has been on digital tokens Dogecoin, Avalanche, and Cardano. Speculators are also turning their attention to – and investing in – Ethereum blockchain competitors.
Thanks to the pandemic, U.S. stocks and Bitcoin have taken a drastic hit (and recovered together). But amid inflation, people are more worried about their future. That’s why they’re now buying cryptocurrencies as a hedge against inflation.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The Jewel of the Crypto Winter: Digital Tokens Backed by Viable Products
The crypto winter that's taken over the market in the last few months has been brutal. Besides tanking prices, there...
What’s New in the Neo-banking Scene in Switzerland?
Swiss neo-banking is becoming increasingly similar to foreign competitors in their product offerings and features. Many are now mimicking the...
Investing Apps: Why Are Retail Investors Using Them?
Investment apps have become increasingly popular among retail investors. Notably, the popularity of investment apps has been triggered by the...
ESG: Tech Companies Must Also Become Responsible
ESG has become vital for many companies in traditional industries like mining. But what are tech companies doing to keep...
Credit for European Companies Cheaper Than a Year Ago Despite Rising Euribor
While market interest rates have seen significant increases, new company financing rates remain lower than they were a year ago....