2024 is a good year for many crypto assets after a period of stagnation and massive collapse in cryptocurrencies. Cryptocurrency analyst Altcoin Daily in his video update highlighted why cryptocurrencies are rising today.
The most important reasons behind the boom
The first culprit behind this pump is none other than MicroStrategy which recently bought $37 million worth of Bitcoin, bringing its total stock to 10,000 Bitcoin worth $8.1 billion. This is the main reason why the price of Bitcoin continues to rise. CEO Michael Saylor's unwavering belief in Bitcoin and MicroStrategy's massive accumulation show that more and more people trust digital assets to store value.
Saylor's drive to get more bitcoin extends beyond corporate interests; It owns more than 1% of the total Bitcoin in existence. According to him, Bitcoin is a unique asset class with special qualities that can maintain its value and overcome geopolitical pressures. Like gold, you cannot transfer Bitcoin, it is a decentralized asset that comes with a mark of ownership, making it safer than other assets. This makes it a good choice for investors.
The next cryptocurrency on the list is Ethereum, the second largest. It has recently shown some positive price movement, driven by developments such as Ark Invest and 21 Shares modifying their spot Ethereum ETF applications to allow for cash creation, indicating a potential rise in the value of the cryptocurrency. This mirrors the pattern observed with applicants for Bitcoin ETFs prior to regulatory approval, indicating Ethereum's growing institutional appeal.
While challenges such as network outages, as seen with Solana, remain, investor confidence remains strong, with CoinShares reporting significant inflows into Solana investment products. In addition, the total value locked in Solana continues to show an upward trend, reaching $1.65 billion. The expected Solana ETFs, such as Ethereum ETFs, are also expected to make Solana more attractive to investors.
A big change is coming!
Looking to the future, the cryptocurrency market is about to undergo major changes. The Bitcoin halving event will occur in approximately 70 days, and regulations for Ethereum will become clearer. Ethereum's potential as a leading blockchain platform is enhanced by projects such as Promethium, a US-registered crypto securities platform that has chosen Ethereum as its first trading and custody product to comply with SEC rules.
Moving further down the list, there are developments in decentralized finance (DeFi), evidenced by projects such as Helix which brought the Japanese yen to the blockchain through the Injective Protocol decentralized exchange, showcasing the increase in adoption and interest of cryptocurrencies around the world.
Overall, the convergence of institutional investment, regulatory developments, and technological advancement sets the stage for continued growth and innovation within the cryptocurrency ecosystem in 2024. Stay tuned for more updates on this evolving landscape.
