About 50 percent gains were recorded against the US dollar for tokens such as VeChain, Ontology, and PundiX, as the crypto market recovered and Bitcoin showed stability for over the past 24 hours.
The highest gain in values was recorded by VeChain on August 17, rising by over 50 percent against the US dollar, hence, becomes the digital asset that performs best this week.
What Is the implication of Strong Performance of Tokens?
Usually, investors in a bear market try to dodge high-risk high-return trades, precisely the tokens, and small market cap cryptocurrencies. Although for the whole of last week, the dominance index of Bitcoin almost got to 60 percent for the first time since late last year.
A various number of investors have begun to shift their funds from major digital assets such as Bitcoin and Ethereum to tokens like Ontology, VeChain, ICON, Pundi X, Nano, and Waltonchain in the past 24 hours thereby pushing the crypto market value up.
As the Bitcoin price maintains stability in the $6,500 region and other major cryptocurrencies have fought hard to acquire major gains, the wider hit in the price of tokens indicates the increasing confidence of investors in the market.
The head of digital assets at Susquehanna, Bart Smith, stated that the initiation of the Tracker One ETN to US markets may become an agent which may lead to the dominant currency’s next rally. He explained that if not that ETNs majorly execute the works of exchange-traded funds (ETFs) in the traditional finance market without some of the insurance and protection documents, the Bitcoin market would be flooded with more retail investors in the nearest future.
“It’s $8 million traded today (via the ETN). So if you had that repeat in a fund over and over again that would add up pretty quick. I would think that if this volume persisted over time that the ETN could be a big deal, but the market didn’t move and the market is in show-me mode. There’s been a lot of news that has come along that you would have thought would have been a catalyst,” Smith stated.
Smith mentioned repeatedly that the cryptocurrency sector could take part in yet another mid-term rally, if many of the positive progress in the cryptocurrency sector such as the introduction of the Tracker One Bitcoin ETN to US markets, the intense possibility of authorization of the Cboe Bitcoin ETF, and the establishment of BAKKT by ICE, New York Stock Exchange, Microsoft, and Starbucks begin to show effect on the market, Positive Takeaway
Investors for some months now have been relaxed towards investing in tokens and high-risk trades. It is believed that a number of retail traders are investing in small market cap cryptocurrencies, thereby pushing the volume of the crypto market upwards.
The best event for the market in the next few days would be Bitcoin showing stability in the mid-$6,000 regions, making ground for a big rally in the short-term.