Why Bitcoin Won’t Budge – Price Tops Out at $50K
Has Bitcoin Lost Its Mojo?
Ever since the peer to peer electronic cash system was introduced in 2008, Bitcoin has been the first and favored child of cryptocurrencies. Even today, while the number of digital currencies has grown to over 10,000 different types, BTC remains the largest and most valued coin in the pack.
It continues to hold a substantial lead over all other top coins, including Ethereum, Polkadot, Cardano (ADA), and Chainlink to name a few. And that’s despite this year’s roller-coaster highs and lows where the price of the leading digital currency more than doubled from January through mid-April, then dropped as much as 52% into July, then rallied upward again topping out at just over $50,000 at the start of September.
Since then, however, Bitcoin has been hovering at or just below that 50K high mark. What’s up with that?
Bitcoin Competition is Building
Despite Bitcoin’s stall, it’s still way ahead of the pack. But that doesn’t mean its competitors aren’t making inroads. CoinShares reported that Ethereum welcomed an inflow of $22.4 million in August. Likewise, Cardano (ADA) saw inflows of $18.7 million. Litecoin (LTC), Solana (SOL), and Avalanche (AVAX) have also made gains. And though their combined piece of the crypto market may still be significantly smaller compared to Bitcoin’s, their apparent gains seem to be born out of the top competitor’s loss.
Non-Fungible Tokens (NFTs) are Also Gaining Steam
NFTs, those digital assets that are individually unique and therefore not interchangeable, are also seeing unprecedented growth. The ability for artists and collectors to receive a percentage of both first time and future sales of their digital artwork or possessions has been a real boon to those in the arts and collectibles community not to mention other retailers. How much have NFT sales skyrocketed? Payments for NFTs in August alone reached $1 billion, compared to less than $100 million for all of 2020.
It’s helped also that VISA has taken an interest in NFTs as well as crypto in general. In the first six months of the year, the global payments technology company has conducting over $1 billion in crypto sales transactions. Most recently, in mid-August it purchased an original NFT, CryptoPunk 7610 for a reported $150,000.
Facebook is also considering getting in on the action and may soon begin building NFT-related products and features.