This week marked an exciting milestone for the cryptocurrency market, with its total value officially topping $3.3 trillion. Still little more than a decade old, the market for Bitcoin, Ethereum and the like hasn’t just grown – in fact, it has quadrupled from its 2020 market year end value. And for many, its astonishing skyward trajectory is a stunning example of its huge potential, and the fact that its influence is only continuing to grow.
In its infancy, few would have believed that Bitcoin – the first digital asset to the party – would be standing at an eye-watering value of $66,000 alone by 2021. Back then, it was something of an inside joke amongst investors, with many dismissing it as laughable – but a few savvy individuals saw something in it that others didn’t, which would go on to make them many millions over the years that followed.
Today, investors are growing more comfortable with established tokens like Bitcoin, and as peer networks like Ethereum and Solana continue to upgrade and improve and offer greater functionality than ever, their values, too, are continuing to soar. This week, Ethereum reached an all-time high of $4,470, sparking renewed excitement about the possibilities assets like these could offer moving forward. Decentralised finance and non-fungible tokens have become hot topics over the past couple of years, and rightly so – as they quite simply have the potential to transform global finance.
Dogecoin and Shiba Inu offer long-term potential
Even the likes of Dogecoin and Shiba Inu – both of which started life as parody coins based on a Twitter meme that sparked the idea after it was commented on by business magnate Elon Musk, have seen intriguing growth of late, and despite still holding tiny values when compared with Bitcoin, many believe that their long-term potential is huge.
The value of Binance Coin and Solana – the third and fourth-biggest tokens, and both of which are tipped for big things in 2022, surged more than 20 per cent last week, with all of the seven largest coins up until a minor blip earlier this week – but all are recovering quickly and expected to soar even higher as we move into December.
With crypto companies also rallying, it’s the perfect recipe for massive all-round growth, with each playing a contributing role in fuelling the recent spike and bringing the total market value to $3.3 trillion.
There’s no denying that crypto is volatile in nature – in fact, it has become notorious for it. But increasingly, we’re seeing the likes of Bitcoin demonstrate renewed resilience as they continue to bounce back quickly from troughs – no matter how big or small. With this comes a growing sense of confidence from previously sceptical investors, with even amateurs eager to get a slice of the pie. More millennials and upper Gen Y and Z-ers than ever are signing up to trading platforms like Immediate Edge to learn the ropes in the hopes of turning their savings into fortunes long-term – though they’ll need to be patient if they truly wish to reap the ultimate reward, and be prepared for a potentially bumpy ride.
Can Bitcoin continue to soar in value?
The last time Bitcoin soared to such lofty heights, it crashed dramatically by several thousand dollars and has undergone multiple corrections throughout its lifespan that have taken it down by more than half. ‘Memecoins’ like Doge have so far proved to be even more volatile, with their values often cycling through rapid spikes and crashes – but these relative newcomers to the market are hotly tipped for the future and given their incredibly low prices when compared to Bitcoin, are making it easier for would-be crypto investors to get on board.
With regards to Doge and the like, it has been noted that there may be some way to go before they can compete with more established digital assets due to their technical inferiority, with security and functionality issues needing to be ironed out if they are to be in any hope of enjoying long-term success. Still, for new investors hedging their bets, there isn’t a lot to lose by jumping on board currently.
Bitcoin’s current rally has been fuelled by many factors, including the trading debut of a Bitcoin-linked ETF in the U.S. and a Twitter poll recently run by Elon Musk – a man whose influence on the crypto market, it seems, knows no bounds.
As we’ve seen in the past, one tweet has the power to change everything – so what 2022 holds for the world of crypto remains to be seen. But the future is certainly looking promising, and with just one month left of this year, it isn’t long until we’ll get to see it all unfold.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.