Ethereum, Ripple’s XRP, Litecoin, and Chainlink are the biggest cryptocurrencies in the world after bitcoin and they have suddenly exploded this week.
Ethereum, XRP, litecoin and chainlink, with a combined market value of around $ 100 billion, each added between 20% and 50% this week, even surpassing the rally in Bitcoin.
While ethereum, XRP, litecoin, and chainlink were bolstered by bitcoin’s growing reputation as digital gold through 2020, other cryptocurrency trends pushed them up as well.
This week, the price of ethereum topped $ 500 per ether for the first time since June 2018. While ethereum remains well below its all-time high of around $ 1,500 set in January 2018, the price of ethereum nearly quadrupled in March 2020, when the coronavirus crash wiped out global markets.
“Receiving $ 500 worth of Ethereum for the first time since June 2018 is a significant milestone,” Paolo Ardoino, chief technology officer at British Virgin Islands-based Bitfinex, said via email.
“Ethereum’s upcoming transition to proof of stake is being watched closely. [Its] The strong price performance underscores a mood of optimism that appears to be lifting the crypto space. While bitcoin is the undisputed king of crypto, the thriving ethereal community is alive with many possibilities. “
One such part of the ethereum community is chainlink, an Ethereum-based cryptocurrency token that powers a decentralized network designed to connect smart contracts to external data sources.
The price of chain links increased 500% from last year and exploded amid a wave of interest in decentralized finance (DeFi) – using crypto technology to recreate traditional financial instruments such as loans and insurance.
“The accelerating growth of bitcoin is the increasing demand for yield and the rise of DeFi, the fastest growing sector in the blockchain industry,” said Sergey Nazarov, co-founder of chainlink, by email. Nazarov expects bitcoin to hit $ 100,000 per bitcoin “during this market cycle,” urged new DeFi cryptocurrency projects.
“Now, for the first time in bitcoin history and coinciding with a historic rise in inflation; not only can someone buy bitcoin as an inflation hedge, but they are also able to receive an APR or a much higher return than you might expect from traditional finance. “