We were meant to learn something this year, which is anything that goes up has the potential to go even higher. Cryptocurrencies were the proof of that. The digital currencies continue to soar despite skeptics and warning from financial experts and regulatory bodies across the world.
By the end of last year, the total market value of cryptocurrencies was roughly $17.7 billion. Fast forward a year later, and their market value had surged to an all-time high of $635 billion. This is an astonishing 500% increase in value in less than a year.
What is the catalyst for crypto mania?
Several reasons are driving the crypto market higher as a whole. At the top of these reasons is the amazing technology behind cryptos, the blockchain technology. The blockchain is the foundation upon which the digital currencies are built. The blockchain is a digital, distributed, and decentralized ledger, responsible for initiating and completing transactions, afterward recording them on a public ledger.
The main reason why it has gained widespread recognition is that blockchain does all that without any third party. Using blockchain for transactions has provided security that the traditional databases couldn’t provide, making them faster, more secure, and cheaper.
The second biggest factor in the growth of cryptos is emotions. With institutional investors watching from the sidelines, supporters and retail investors have taken up the mantle of moving the digital currencies so far. Crypto coins have gained millions of investors worldwide because everyone is afraid of losing out on the big profit. These emotions have played a part in pushing cryptocurrency prices even higher.
The third most important catalyst is the increase in the use of cryptos. Leading the pack is bitcoin, which has successfully incorporated new merchants on its network this year. As more businesses and companies begin to accept digital coins, they become more genuine and valid as a means of purchasing goods and services.
The last major catalyst is the news-driven events. The biggest catalyst for bitcoin’s price value rising over the past few weeks is new that both CME Group and CBOE Global Markets will trade bitcoin futures contracts on their platforms. The news drove the price of bitcoin to greater heights. The events increased the validity of cryptos as a new asset class.
This year, bitcoin has been at the center of crypto rise. Investors, traders, analysts, and regulatory bodies are mostly focused on bitcoin, less so on altcoins. This is understandable when you consider that it currently makes up 45% of the aggregate market cap of all virtual coins and is the most traded digital currency in the world.
Rise of other cryptocurrencies
Although bitcoin is the virtual currency that has taken most popularity in recent months among investors around the world, there are other cryptocurrencies that have had a similar revaluation, and even higher than the one presented by it. Thus, for example, Ripple has increased its value close to 18,000%; while NEM has done it 6,000%; and Ethereum has grown close to 10,100%, so the only investment option currently is not bitcoin.
While at the beginning of the year, this cryptocurrency was trading at a little more than $8 per unit, now it floats $800 barrier after reaching a maximum of $823.66 last week, which represented a growth of more than 10,100%. At present, according to information from the Coinmarketcap web platform, the market capitalization of this virtual currency reaches an amount that already exceeds $70 billion.
Ripple has earned 18,000%
If you are interested in acquiring cryptocurrencies, Ripple may be another of the many options offered by the digital currency market. To do this, keep in mind that the price went from a few cents, exactly 0.0062, to $1.14, which, because it is not a very high price, will allow you to acquire it more easily. Also, keep in mind that in the year it has had an appreciation of more than 18,000 percentage points.
Dash is worth $1,466
Today, the market capitalization of Dash reaches $9.6 billion, when a couple of years ago it was very low, because its price has grown exponentially in recent years. According to the Coinmarketcap platform, at this moment, each unit of this virtual currency is traded over $1,200. It should be noted that at the beginning of the year, this was negotiated on 10 dollars per coin and last week it touched the $1,466 milestone, which yields an appreciation of 14,560%.
Monero up 4,260%
Another option you can look for to invest in 2018 is Monero, a cryptocurrency that has also had an important growth during the last 12 months. While in January it was worth less than 10 dollars per unit, at this moment, each cryptocurrency is quoted at $416, which gives this crypto an increase of 4,260% and a market capitalization that already completes around $7 billion.