KRIPTOVALUTE EVOLUTION AND NFTS: A view of impact on market capitalization
In recent years, the world of finance has witnessed a revolution in the field of digital property. Two of the most prominent players are cryptocurrency of currency and non-festive tokens (NFT), which globally received significant attraction. This article will peek into the impact of NFT on market capitalization and explore the increase in the Ethereum as a leading platform for these innovative assets.
Rise Crypto Currency
Crypto currencies, such as Bitcoin (BTC) and Ethereum (ETH), were first introduced in 2009. Since then, they have become the main in the digital economy, with many investors inserting their capital into this property. The increasing popularity of cryptocurrencies can be attributed to several factors:
- Decentralization : Crypto currencies act on a decentralized network, allowing transactions with peers without the need for intermediaries.
- Limited supply : Most Crypto currency has a limited supply of coins, which contributes to their scarcity and value appreciation.
- Safety : Cryptative exchange and wallets offer strong security measures, reducing the risk of hacking and loss.
The appearance of nfts
Tokens that are not bothering (NFT) are unique digital assets that represent ownership of a unique item. They gain popularity from the introduction of platforms such as OpenSe and Rarible in 2017. NFTS offers several advantages over traditional art and collecting, including:
- Ownership : NFT -Owns provide final ownership rights to a particular digital property.
- Parentness : Rare and uniqueness of NFT -A contribute to their appreciation of values.
- Transparency : NFT -ovi are listed on public exchanges, making them easily temporary.
Impact on market capitalization
As the crypto currencies and NFTs have gained popularity, market capitalization has increased significantly. According to the CoinDeska report, the total capitalization of the cryptocurrency market surpassed $ 2 trillion from its peak in January 2021.
Here’s the growth of market capitalization for some of the best currency crypto:
| Crypto | Market Capitalization (January 2019 – January 2021) |
| — | — |
| Bitcoin (BTC) | $ 350 billion |
| Ethereum (eth) | $ 430 billion |
| Solana (salt) | 18.5 billion USD |
| Cardano (Ada) | $ 10.6 billion |
Ethereum’s rise
Ethereum was at the head of the NFT revolution, with a native crypto currency, ether (eth), as a key to growth in this space. The decentralized Ethereum Network platform allows developers to build and implement smart contracts, allowing the creation of unique digital assets.
In recent months, Ethereum has experienced significant growth, guided by several factors:
- Stablecoins : Introducing Stablecoin platforms such as USDC and DAI increased demand for ETH.
- NFT markets
: NFTse market increase such as OpenSe and Rarible has led to an increase in interest in property based in Ethereum.
- Interoperability : Development of interoperabic blockchain platforms, such as Cosmos and Polcadot, expanded the reach of Ethereum’s ecosystem.
Conclusion
Growth of the Crypto Currency and NFT -A is accompanied by a significant growth of market capitalization. As these assets continue to attract, we can expect to increase the adoption in different industries. Impact on market capitalization will be guided by factors such as increasing the demand for ETH, the development of new NFT markets and the continuous expansion of Ethereum’s ecosystem.
Recommendations
- Investment : Consider investing in CRIPTO currency and NFTs with a long-term perspective.
- Diversification : Diversify your portfolio to reduce your risk by assigning part of your investment in this property.
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