The cryptocurrency industry leaders Bitcoin and Ethereum are no longer leading the charge in crypto markets. Lesser-known digital tokens have taken the helm.
Cardano is currently the third-leading crypto, with profits soaring twofold this month. Avalanche digital token is also up — and has tripled in August. Binance has surged, too.
There’s no clear explanation as to what could be driving their prices. Still, some investors and analysts speculate people are now moving from mainstays to newer tokens.
Other experts intimate ultra-low rates could be the main reason investors are spending big money on lesser-known digital tokens.
That said, Cardano is backed by strong narratives with great technological advances, thus creating an uptick in trades.
Excitement in Crypto
If you look at the growth of these companies or their total trading volumes, you can tell there’s a lot of excitement in crypto.
Founder of online exchange eToro, Yoni Assia, calls this excitement “generational buying moment”. He says it’s inspired by the coming together of events — tokens ultra-low rates and massive stimulus packages handed out during the pandemic.
Incidentally, some of that money was invested in crypto.
According to a recent survey conducted by Harris Poll for Yahoo Finance, approximately 15% of Americans bought crypto with the first two stimulus checks they received.
Inflation has also played a pivotal role in lesser-known digital coins taking charge in the digital markets. Combine all that information, and you’ll see what’s leading many people to various types of investments.
Crypto Trading Apps Downloads Also Rising
Expect more people to sink huge amounts of money into other easily accessible digital assets with all the money floating around.
According to App Annie, a mobile data and analytics provider, Coinbase Global Inc. ranks 11th among the most downloaded finance apps in the Apple environment. In August last year, it ranked 23rd within its category.
Younger generations are responsible for this. It’s no surprise that they have gravitated toward the crypto space — the Federal Reserve has been perpetually accommodative. And the government has been gridlocked.
So far, massive attention is currently placed on Dogecoin, Avalanche, and Cardano digital tokens. Speculators are also turning their attention to rivals of Ethereum blockchain — and investing in them.
Thanks to the pandemic, the US stocks and Bitcoin have drastically taken a dip (and rebounded jointly). But not so much. Amid inflation, people are more concerned about the money supply. As such, they’re now buying crypto as a hedge against inflation.
