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.
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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.
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