The value of the largest cryptocurrency, bitcoin, still accounts for almost a 400% year-on-year increase, despite a large drop that occurred at the end of the first half of this year.
After a “dry” summer, when almost the entire market stagnated, at the end of July prices began to move upwards again. And despite the fact that bitcoin and ether, the two largest and most popular cryptocurrencies for novice investors, have gained tens of percent in the last month, the “winners” among the major cryptocurrencies are other currencies.
As the portal informed Bloomberg, the price of cryptocurrency cardano has doubled in the last month, bringing it to third place in ranking of digital assets by market capitalization.
The fourth binance coin, which is backed by the largest cryptobourse Binance, also gained almost 50% in August. Among the first twenty, let’s mention the AVAX token of the Avalanche platform, the price of which tripled this month, or the DeFi solan token, which exceeded the limit of $ 100 and reached the top ten.
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However, analysts and investors disagree on what this sharp increase in “altcoins” other than ether is causing. The reason may be the transition to new “exciting” cryptocurrencies, which often rise after a big bull run, but also the still low interest rates of central banks and the constant influx of money through various incentives in countries around the world, pushing investors to riskier assets.
For example, according to a recent survey Harris Poll for Yahoo Finance About 15% of Americans who received two financial contributions from the government invested some or all of that money. At the same time, almost half of this group also invested in cryptocurrencies.
At the beginning of the year, we could see a similar situation in Slovakia, when, according to various statistics, ithey have invested millions of euros in cryptocurrencies in our country.
Recently study The popular investment platform eToro, in turn, showed that almost a quarter of the 6,000 respondents own cryptocurrencies, rising to almost 50% among young investors.
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At the same time, many investors have stated that they are ready to increase their shares in cryptocurrencies in the coming months. Applications of available stock exchanges such as Coinbase, in turn, are placed at the forefront of application stores.
The increased interest of retail investors in cryptocurrencies can also be traced to the fear of rising inflation after the COVID-19 pandemic. For many years, investors have been buying stocks or precious metals as a hedge against inflation, which nowadays partially replace cryptocurrencies.
According to some analysts, it even has bitcoin the potential to replace gold completely and become one of the world’s leading store of value.