Evolution of cryptocurrency and NFTs: a look at the impact on market capitalization
In recent years, the world of finance has witnessed a revolution on the realm of digital assets. Two of the most prominent players are cryptocurrency and non -functioning chips (NFT), which have achieved a significant global traction. This article will deepen the impact of NFTs on market capitalization and explore the growth of Ethereum as a leading platform for these innovative assets.
growth of cryptocurrency
Cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), have been introduced for the first time in 2009. Since then they have become a fundamental element in the digital economy, many investors pouring their capital in these assets. The increasing popularity of cryptocurrencies can be attributed to several factors:
- Decentralization : Cryptocurrencies work on a decentralized network, allowing peer-to-peer without the need for intermediaries.
- Limited offer : Most cryptocurrencies have a limited supply of coins, which contributes to their deficit and to appreciate their value.
- Security : Cryptocurrency exchanges and wallets provide robust security measures, reducing hacking and loss risk.
The appearance of NFTS
The non -functioning tokens (NFT) are unique digital assets representing the property of a unique article. Have gained popularity since the introduction of platforms such as Opensea and Rarible in 2017. NFTs offer more benefits to traditional art and collections, including:
- Property : NFTs offer definitive property rights over a specific digital asset.
- Deficit
: Rarity and uniqueness NFT contributes to the appreciation of their value.
- Transparency : NFTs are listed on public exchanges, which makes them easily followed.
Impact on market capitalization
Because cryptocurrencies and NFTs have gained popularity, market capitalization has increased significantly. According to a report by Coindesk, the total capitalization of the cryptocurrency market exceeded 2 trillions of its peak in January 2021.
Here is a breakdown of the increase in market capitalization for some of the best cryptocurrency:
| Crypto | Market capitalization (January 2019 – January 2021) |
| — | — |
| Bitcoin (BTC) | $ 350 billion |
| Ethereum (ETH) | $ 430 billion |
| Sola (soil) | $ 18.5 billion |
| Cardano (ADA) | $ 10.6 billion |
Ethereum growth
Ethereum was at the head of the NFT revolution, with its native cryptocurrency, Ether (ETH), being a key engine of growth in this space. The decentralized platform of the Ethereum network allows developers to build and implement smart contracts, allowing the creation of unique digital assets.
In recent months, Ethereum has undergone a significant increase, determined by several factors:
- Stablecoins : Introduction of Stablecoin platforms like USDC and you give the ETH demand.
- NFT Square : Increased NFT markets such as Opensea and Rarible has increased interest in ethereum -based assets.
- Interoperability : Development of interoperable blockchain platforms, such as Cosmos and Polkadot, has expanded the coverage of the Ethereum ecosystem.
Conclusion
The growth of cryptocurrencies and NFTs has been accompanied by a significant increase in market capitalization. Because these assets continue to obtain traction, we can expect to see an increased adoption in various industries. The impact on market capitalization will be determined by factors such as increasing ETH demand, developing new NFT markets and continuous extension of the Ethereum ecosystem.
Recommendations
- Investments : Consider investment in cryptocurrencies and NFTs with a long-term perspective.
- Diversification : Diversify -your portfolio to minimize the risk by allocating a portion of your investments to these assets.
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