Cryptocurrency and NFTS Evolution: A look at the impact on market capitalization
In recent years, the world of finance has witnessed a revolution in the field of digital assets. The two most outstanding players are cryptocurrency and non -Financial tokens (NFTS), which have gained significant adhesion around the world. This article delves into the influence of the NFTS on the market capitalization and will examine the increase in ethereum as a leading platform for these innovative assets.
Cryptocurrency Increase
Cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), were first introduced in 2009. Since then, they have become the basis of digital economy, and many investors have poured their capital on these assets. The growing popularity of cryptocurrencies can be assigned to several factors:
- decentralization : Cryptocurrencies operate in a decentralized network, enabling peer-to-peer transactions without the need for intermediaries.
- Limited Supply : Most cryptocurrencies have a limited supply of coins, which contributes to their deficiency and recognition of value.
- Security : Exchange of cryptocurrencies and wallets offer solid security measures, reducing the risk of burglary and losses.
Appearance of NFTS
Non -Financial tokens (NFTS) are unique digital assets that represent the ownership of a unique subject. They have been gaining popularity since the introduction of platforms such as opensea and ribble in 2017. NFT offers several benefits from traditional art and collector items, including:
- Property : NFTS provides final property rights to a specific digital resource.
- Deficiency : The rarty and uniqueness of NFT contribute to their value.
- Transparency : NFT are listed on Public Exchanges, which makes them easily identifiable.
Impact on Market Capitalization
Because cryptocurrencies and nft have gained popularity, market capitalization has increased significantly. According to the Coindeska Report, the total capitalization of the cryptocurrency market exceeded $ 2 trillion from the summit in January 2021.
Here is a division of market capitalization growth for some of the best cryptocurrencies:
. Crypto Market Capitalization (January 2019 – January 2021)
. — | — |
. Bitcoin (BTC) $ 350 Billion
. Ethereum (ETH) $ 430 Billion
. Solana (SOL) $ 18.5 billion
. Cardano (ADA) $ 10.6 billion
Ethereum Growth
Ethereum was at the forefront of the NFT revolution, with his native cryptocurrency, ether (ETH), being a key engine of growth in this space. The decentralized Ethereum Network platform allows programs to build and implement intelligent contracts, enabling the creation of unique digital resources.
In recent months, Ethereum has experienced significant growth, powered by severe factors:
- StableCouins : Introduction of StableCoin Platforms Such as USDC and Dai Increased Demand on ETH.
- NFT Market: NFT Markets, Such as Opensea and Riber, LED to an increase in interest in assets based on Ethereum.
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Application
Cryptocurrency and NFT Growing is increased by a significant increase in market capitalization. Because these assets still gain adhesion, we can expect an increased party in various industries. The impact on market capitalization will be caused by factors such as growing demand for eth, the development of new NFT markets and the continuous extension of the ethereum ecosystem.
Recommendations
- Investment : Consider investing in cryptocurrencies and nft with a long -term perspective.
- diversification : Diverse with your portfolio to minimize the risk by assigning a part of the investment to these assets.
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