Bitcoin and Ethereum hit new all-time highs in April and May. The top cryptocurrencies all crashed in May and June.
From mid-April to late June, Bitcoin fell from $65,520 to a low of $28,800, a 56% drop that provided almost all the 2021 gains. Ethereum’s drop was equally dramatic, falling from $4,406.50 in mid-May to a low of $1,967.75 in late June. Ethereum dropped by more than 55%.
The parabolic price action abruptly ended, but it did not signal the end of the cryptocurrency revolution. Both leaders have staged impressive comebacks in recent weeks demonstrating the resilience of the burgeoning asset class.
Meanwhile, Bitcoin and Ethereum recoveries are likely to rekindle the speculative frenzy seen earlier this year. As of August 10, there were over 11,200 tokens in the cryptocurrency asset class. While the top two garner the most attention, speculators sift through the rest in search of diamonds in the rough. It’s goal is to deliver and turn a small investment into untold wealth.
TFUEL and WAVES
Theta Fuel (TFUEL) and Waves (WAVES) are two highly ranked cryptos, with market caps that place them among the top 65 tokens with higher values than 99.4 percent of the others competing for attention.
Greed is a strong emotion, and nothing fuels it more than a bull market. As Bitcoin, Ethereum, and many other cryptos have recovered significantly. The demand for the next token to explode higher rises.
Fear is Greed’s companion. The drops from the April and May highs sent shivers down the spines of weaker market participants looking for profits who aren’t necessarily ideological crypto supporters.
While the ideologues saw the correction as an opportunity, those driven by emotions fled. The recent price action validates the believers, and the market’s emotional component is likely to jump back on board now that the trends are higher.
MARKET: Rise and Fall
While cryptocurrency prices fell sharply and the asset class’s market cap shrank, the number of new tokens continued to rise. The asset class had 10,725 tokens at the end of the first half of 2021. The figure was 11,208 as of Aug. 10, up 4.5 percent from the previous day and continuing to rise.
The increase in the number of tokens reflects the fundamental demand for new instruments. Much of the demand is driven by speculation, as volatility creates a speculative paradise for trend-following traders and those who allow their emotions to guide them. Bull markets attract emotional market participants like a magnet.
TFUEL and WAVES are two tokens that may entice buyers now that Bitcoin and Ethereum prices have recovered. It has a market cap of just over $1.57 billion on August 10th. AS a result, Theta Fuel was the 65th most valuable cryptocurrency by price. Currently, it has climbed to the 62nd rank on the list of most valuable equities. It has a market capitalization of $1.76 billion and a recent price increase to 33 cents.
WAVES is a blockchain-based cryptocurrency that allows users to create and launch custom crypto tokens without the need for extensive smart contract programming. This is currently the 57th most valuable cryptocurrency. At the time of publication, its market cap was $1.95 billion, with a price of $18.36 per token.
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