Meta description: Uncertain times push an increasing number of investors toward safe-haven assets which is one of the reasons behind the crypto market booming.
Uncertain times push an increasing number of investors toward safe-haven assets. Cryptocurrencies turned out to be one of them. Here is some insight into the reasons behind the crypto market booming.
Blockchain is like freedom of speech. We can’t stop it.
The cryptocurrency market relies on blockchain. Blockchain is the distributed trust network the Internet has always needed, and no one can stop it. Why? Because it’s made up of nothing but code. You cannot stop someone from speaking or writing their thoughts on their computer. To stop the Blockchain, you need to prevent people from coding, which means banning their free speech. The country that did this would be one of the most totalitarian regimes we have ever had.
The adoption rate and growth of cryptocurrency exchanges
The biggest exchanges are experiencing tremendous growth, opening thousands of new accounts per day. The network effect is getting more and more powerful, and the average dollar amount per user is also increasing, as slowly, but surely people are investing more and more in it. Moreover, today you can trade and invest in cryptocurrency using Forex broker services.
The unprecedented accessibility to this market is hard to ignore
Today anyone can buy cryptocurrency anywhere in the world, as long as you have internet access. When you see 15-year-olds who have Ethereum in their Coinbase account, you tell yourself that this “bubble” just keeps growing. Of course, there will be winners and losers, as at least 90% of the companies/tokens that make up the crypto landscape will disappear in the next few years. But what is certain is that the Blockchain, by its value and its disruptive quality, will not disappear.
Great players are coming
Some on Wall Street are realizing that a few small crypto hedge funds are making incredible returns. Indeed, when you hear that the best-in-class achieve over 400% to over 600% growth per year, traditional hedge funds are getting a bit old-fashioned. As a result, billions of dollars will trickle down from Wall Street into the crypto market over the next few years. The big financial institutions that have rejected Bitcoin for years are slowly starting to take the wave.
Adoption as a Payment Method
Cryptocurrency prices soared due to the growing adoption of BTC as a payment method. The PayPal announcement from March 30, 2021, regarding the acceptance of cryptocurrencies as a payment method, pushed BTC prices up immediately. Given that PayPal counts over 350 million users, this event represents a kind of historic moment for the crypto market.
The Dogecoin case
The last few days have been much more positive for Dogecoin enthusiasts. Created as a kind of joke, supported by a community of memes, its price skyrocketed. After several months around 0.045 / 0.050 euro, the price rose to 0.28 euro with a peak at 0.32 euro.
It represents a capitalization of no less than 35.87 billion euros, 18 billion having been traded in the last 24 hours alone.
Dogecoin thus follows the same trend as Bitcoin and Ethereum. While its price is very far from the two largest cryptocurrencies, the increase in its price since the start of the week is nonetheless impressive.
Since the beginning of the year, virtual currency has climbed more than 2,600%. Today, it enters the top 10 of the most important cryptocurrencies in existence, placing ahead of Chainlink and behind Litecoin.
While it was not designed to play in the same category as the most important cryptocurrencies, Dogecoin is gaining ground. Its price often goes up after Elon Musk’s tweets.
However, the entry into the stock exchange of Coinbase, the cryptocurrency trading platform, may also have something to do with it. It is blowing a new wind in the sector that benefits most virtual currencies as industry players hope it will spur a shift in the overall perception of cryptocurrencies.