Which Cryptocurrencies Are Getting More Popular?
The crypto-currency boom that started in 2013 has seen the price of bitcoin rocket up to over $1,400 a coin, and more than two-thirds of cryptocurrencies have increased their market value over the same period.
However, not all cryptocurrencies have fared so well.
A recent survey of more than 6,000 crypto-users, published by Crypto Currency News, found that there were only about 10 cryptocurrencies which had the same value as bitcoin as of May 2018.
These were cryptocurrencies like ether, litecoin, dash, nxt, ripple, and btc-e.
In the most recent survey, there were 17 cryptocurrencies which were valued at more than $10,000.
The largest gainers from this boom were bitcoin and ether, which jumped by more than 5,000 per cent over the period.
Other gains included the rise of fintech, the use of blockchain technology for payments, and other applications that are currently only in beta.
“The surge in crypto-assets and value has been the result of a combination of a broad and deep demand for value, a rising adoption rate, and the adoption of technologies that offer greater scalability and transparency,” says Daniel T. Smith, an analyst with Coinmarketcap.com.
“There are still many issues that need to be addressed to keep cryptocurrencies growing in value and adoption.”
The crypto boom is a phenomenon which has been going on for decades.
In 2016, it saw the launch of digital currencies like bitcoin and ethereum, which had a major impact on the financial sector and were the first cryptocurrencies to truly disrupt the way money was exchanged.
The value of bitcoin skyrocketed from less than $1 in 2010 to more than a $25,000 by 2015.
In 2017, it surpassed $300,000 and has since grown by leaps and bounds.
And although the boom has been relatively rapid, its growth has been slow and fluctuated, as bitcoin is trading at less than 3 per cent a day.
While the crypto-bubble has seen many cryptocurrencies surge, there have been plenty of dips.
Some of the most notable were bitcoin, ether, and dash, which were all trading at around $300 per coin.
The last time the value of a cryptocurrency increased at such a rapid pace was during the financial crisis in 2007, when bitcoin was trading at $7,000 at the peak of its boom.
Other cryptocurrencies that have suffered steep losses include ether, ripple and bttc-e, which have lost more than 60 per cent of their value.
The reason for this is not just the rapid growth of these new currencies, but also their volatility.
The recent rise in the value and popularity of ether is believed to be the result from its ICO, in which the platform allows users to invest in a number of cryptocurrencies, including ether.
Ether, a token that has value based on the number of tokens held by its users, has seen its value steadily rise.
But the crypto boom has also seen some of the biggest players in the industry take a hit.
In 2018, the value dropped by more a quarter of a billion dollars.
In 2020, the cryptocurrency price fell by more half a billion, which has seen a significant drop in the price that cryptocurrencies are being traded at.
At the same time, more than 3,000 digital currency exchange platforms have closed, which is a significant decline in the number and volume of trading platforms available to users.
“As the crypto market continues to grow, the price is also expected to continue to increase, especially as exchanges close,” says Smith.
This is likely to make it harder for new companies to gain traction in the sector.
Some other notable losses from the crypto bubble include bttco and btgox, which are both trading at under $1.
The market for trading cryptocurrencies is also likely to continue improving in the future, as more and more people start to understand the benefits of using a blockchain-based currency.
It will be interesting to see how long the crypto wave continues to reign.
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