Earlier today, 50 of the most valuable cryptocurrencies in the market demonstrated a large decline in value, with Bitcoin and Ethereum falling by nearly 10%, but except Ethereum, Dash and Bitcoin, all other top cryptocurrency values have increased in the global market.
Ethereum Records the Biggest Gain
The world’s second largest cryptocurrency Ethereum recorded the highest gain in the crypto space as the currency recorded a 15% increase in price over the last 48 hours, surging from around $1,100 to $1,235. Analysts believe that the surge in the price of Ethereum is due to the progress made in the Ethereum open-source development community which has resulted in scaling the network.
The Ethereum network is now able to process over a million transactions per day.
The exponential growth rate of decentralised applications shows the increase in the currencies’ daily transactions. The increase in the daily transaction of some of the applications such as EtherDelta, 0x, Radar Relay, and CryptoCribs shows a significant increase in active users over the last few months.
In the crypto space, it is virtually impossible to find a commercially successful decentralized app that hasn’t conducted an ICO, because ICO’s have become the easiest way to raise funding for developers.
Even though the crypto market has recorded some gains over the past week, it is still down by $240 billion compared to its monthly peak which was $820 billion. At the moment, the crypto market cap is roughly $586 billion, with most of the major digital currencies such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Cardano will have to record some big gains over the coming weeks before the market cap can reach the former heights.
That will be hard though as cryptos like Ripple and Bitcoin Cash are down by more than 50 percent from their all-time highs, with only Bitcoin and Ethereum being the major cryptos to have performed better.
Major currencies like EOS and Ether have shown increase of 5% within 24 hours and this value shows that the cryptocurrency market has started to recover. Tokens such as Ontology (ONT), Storm (STORM), and Tron (TRX) demonstrated gains in the 10-15% region.
Bitcoin prices have been observed to have had significant losses throughout May 10 to May 12, while also struggling with US Dollar, while other small cryptocurrencies and tokens at the same time face large losses against both Bitcoin and US Dollar.
Tokens mostly like Trim and Ontology are following the trend of Bitcoin in the terms of price over the time of 48 hrs. It has been seen that the value increases once Bitcoin prices go upwards and if Bitcoin price drops then these currencies faces large losses.
The truth is that financial markets go through cycles. Not even the stock market is immune, and investors experience similar woes in traditional investment vehicles toward the beginning of the new year as well.
Look at the past to see the future.
If you look back on cryptocurrency history you’ll see similar trends presenting themselves. Cryptocurrency veterans are aware of this, and they are holding strong through the storm. Often these corrections are necessary for the market, and if you’re patient you’ll likely see yourself rewarded.
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