Tue, 01 Dec 2020

Growing Enthusiasm Sees Crypto Assets Perform Well In 2020

Beijing News
05 Nov 2020, 18:33 GMT+10

This year has been a positive one for the crypto market and a majority of the coins. Bitcoin is trading above $11,000, Ethereum is trading above $380, Tether, the USD backed stable coin, is third on the charts with a market cap of over $15 billion, and even XRP has managed to maintain the fourth position. Several factors have fueled growth within the crypto sector this year, including the explosion of DeFi and growing acceptance of cryptocurrencies amid the pandemic and its adverse effect on economies and fiat currencies.

It's this growth that has seen many jump on Google and other search engines as investors try to figure out the answer to the question "how do you invest in Ripple?" and other well-performing cryptocurrencies on platforms like PrimeXBT where you can trade these assets using CFDs without actually having to own them. One doesn't need to be an expert to trade here since PrimeXBT also is the exclusive home to Covesting, a peer-to-peer copy trading module connecting inexperienced traders and investors that otherwise wouldn't trade with skilled strategy managers to profit together synergistically. Meaning, it allows users to imitate the most successful traders' trading strategies and implement them on your own trades. Data from Google trends shows that interest in cryptocurrencies peaked between August 16 22 worldwide, which coincided with increased trading volume over the third quarter. There was an 88% jump in crypto trading volume from Q2 to Q3, attributed to the growing popularity of yield farming and decentralized finance. But, DeFi projects aside, there have been a few standout performers whose growth has been fueled by growing enthusiasm for cryptocurrencies. These include Chainlink and Polkadot.

Why Are They Performing So Well?

After starting the year trading at $1.82, Chainlink would go on to peak at around $19 by mid-August. A tremendous 850% growth in just eight months only. The price did dip a little bit, but still, even at the current trading price of $11, that's a whopping 511% growth for the year so far. The growth has seen LINK, the native token for the smart contract platform, trading in the top ten on the crypto charts with a market cap of over $3.9 billion.

There are a few reasons why LINK is doing well this year, including; the positive performance of ETH on trading platforms like PrimeXBT. Most DeFi projects are based on Ethereum, and the sector's growth has been fantastic for its token. ETH is up 192% since the start of the year and has managed to pull altcoins like LINK along with it. The other reason is the recent partnership it signed with the Chinese National Blockchain Network (BSN). The organization intends to use Chainlink's oracle network to process off-chain data.

A press statement noted that:

"China's national Blockchain Services Network (BSN) is integrating Chainlink as the preferred oracle network to provide BSN systems access to off-chain data. As part of this collaboration, IRIS Network and SNZ Holding will also contribute technical integration support."

Another project that is having a great year is Polkadot. The open-source project aims to create a fully functional and user-friendly decentralized web currently sits at no.8 on the charts with a market cap of over $3.6 billion.

Polkadot wasn't even in the top 100 just two months ago. Then on August 21, there was a community vote where it was decided that the native token DOT would be redenominated, which meant inflating the circulating supply of the token by 100 times. It's similar to stock splits, but the event hadn't been witnessed within the crypto circles. Such events lead to the asset's value rising since small investors get a feeling they can afford it. Polkadot's redenomination saw its tokens divided into 100 new units, and this saw its total supply rise from 10 million tokens to 1 billion.

Even though the event doesn't change the value of the investors' holdings, it leads to speculation as many small investors jump in to own some tokens priced cheaply, and consequently, this pushes the price up.

The event was positive for Polkadot as the DOT experienced a 134% jump in price by September 1. Currently, the token is trading just above $4, which is still impressive since it's 50% above its pre-split price.

With the crypto market sentiment feeling bullish, one has every reason to believe these two projects and many others within the crypto space will continue to perform well as it is edge closer to the end of the year.

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