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Stellar and Bitcoin Cash: top tier cryptocurrencies with critical mass

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  • The wild and parabolic price movement continues; Correction in the last few days
  • Stellar: eleventh leading digital currency by market capitalization
  • Bitcoin Cash is just above tenth place
  • Not all tokens are trending with Bitcoin
  • Market capitalization is crucial and lottery tickets rarely pay off

Another uptrend in the digital currency market has continued to propel novel assets in recent weeks. In 2017, the value rose to $ 20,000 per token after CME introduced futures contracts on the token. After falling to a low of $ 4,210 in March 2020, the cryptocurrency returned to the upside and hit a new high in December. A new era for Bitcoin was heralded as early as 2021, when the price rose ten times from a high of $ 57,790 in February.

While Bitcoin is the leader in the crypto package, there are nearly 8,600 other digital currencies in the asset class. and are two of the eleven largest cryptos with market caps over $ 8.8 billion as of February 25th.

The wild and parabolic price movement continues; Correction in the last few days

Parabolic movements in any market tend to result in prices well above what a fundamental or technical analysis believes possible. A recent example outside of the digital currency industry was GameStop (NYSE 🙂 stocks. The stock, which traded below $ 10 per share in late September 2020, rose to a staggering high of $ 483 in late January 2021 when a massive short squeeze took the stock to a parabolic high.

As gravity hit GME and drove stocks back below the $ 50 per share level on Feb.23 (although it is trading higher again), the parabolic movement in Bitcoin and many other digital currencies continued through Feb.22, as the sale formed another top and new level up target.

Source: CQG

The monthly chart shows that it hit a low of $ 4,210 per token in March 2020 when most asset prices fell at the start of the global pandemic. By the end of 2020, Bitcoin had risen to just below the USD 30,000 level after a significant rally from October to December.

Square’s (NYSE 🙂 October 2020, the $ 50 million purchase of Bitcoin at $ 11,000 per token likely helped spark the rally. In 2021, the explosive price action continued the price of the leader in digital currencies, hitting its most recent high of $ 53,210 on February 17.

When bitcoin was below $ 40,000, Tesla (NASDAQ 🙂 of Elon Musk announced that it had bought $ 1.5 billion worth of bitcoin and that it will accept the cryptocurrency to pay for its electric vehicles. This week, SQ announced it had bought $ 170 million more Bitcoin.

Investments and the adoption of digital currencies have positively impacted Bitcoin’s sails. While Bitcoin and the two leading cryptocurrencies are, there will be thousands more tokens in the asset class as of February 24th.

After trading to a high of $ 57,790, the CME futures contract was back below the $ 50,000 level on February 24, after hitting a low of $ 44,900 this week.

Stellar: eleventh leading digital currency by market capitalization

Stellar’s most recent snapshot with the symbol XLM shows a market cap of $ 9.23 billion at just over 41 cents per token. Stellar or Stellar Lumens is a decentralized open source protocol for digital currencies for processing money transfers, which enables cross-border transactions between any currency pairs. Stellar appeared on the digital currency scene in mid-2014.

Stellar’s website declares that it is owned by the public. It relies on the blockchain to keep the network in sync. It claims that Stellar is:

“Much faster, cheaper and more energy efficient than typical blockchain-based systems.”

Stellar ranking

Source, all rankings:

At just below 42 cents per token, Stellar is still below its all-time high from early 2018.

Star chart

Source: Coinmarketcap

The graph above shows that while Bitcoin may have surpassed $ 30,000 per token above its previous late 2017 high, Stellar remains below its January 2018 high of just over 75 cents.

With a market cap of just over $ 9 billion, Stellar has approximately 0.60% of the digital currency market’s market cap of $ 1.486 trillion.

Bitcoin Cash is just above tenth place

Bitcoin Cash’s BCH symbol took tenth place on the cryptocurrency hit parade on February 23. Bitcoin Cash had a market cap of $ 9.570 billion at a price of nearly $ 540 per BCH token. At the time of writing, it is trading at nearly $ 541 for a market cap of $ 9.90 billion

Bitcoin Cash is a fork of Bitcoin. BCH is a spin-off or altcoin that was founded in 2017. In November 2018, Bitcoin Cash was split into two cryptocurrencies, Bitcoin Cash and Bitcoin SV. Bitcoin SV was the twenty-third leading digital currency on February 24, with a market capitalization of $ 3.585 billion. BCH is sometimes called Bcash.

BCH’s website describes it as an “intermediary” as payments flow directly from the debtor to the payee without the need for a bank or financial institution.

Bitcoin Cash Ranking

At around $ 540 per token, it’s well below its record high from late 2017, when Bitcoin hit its first high at just over $ 20,000.

Source: Coinmarketcap

The graph shows that Bitcoin Cash was trading at a high of over $ 3,500 per token in late 2017. On February 24th it was nowhere near as high. With a market cap of $ 9.570 billion at the time, Bcash held 0.65% of the asset class market.

Not all tokens are trending with Bitcoin

All digital currency tokens are not created equal. There are 8,587 tokens in the crypto world. Stellar and Bitcoin Cash have not kept pace with Bitcoin in the past few months as both remain below their record highs of 2018 and late 2017. Meanwhile, they trended higher, just not as much as the leading providers of digital currency asset classes.

The bottom line for success in the asset class is a combination of utility, acceptance, and outreach. Bitcoin owns 61% of the market capitalization, but its PR is far higher. Jack Dorsey from Square and Elon Musk from Tesla have turbocharged Bitcoin. The potential for a lot of manipulation via PR in the industry is high in the absence of regulations.

Stellar and Bitcoin Cash don’t get a lot of advertising, but they have one thing in common: critical mass.

Market capitalization is crucial and lottery tickets rarely pay off

Bitcoin Cash and Stellar are two of the eleven cryptocurrencies with a market capitalization of over $ 8.5 billion. They represent the crème de la crème in the asset class as only 0.13 tokens can claim membership in the over $ 10 billion club. Critical mass creates liquidity. Only 65 tokens have market caps over $ 1 billion, which is 0.76% of the market.

Digital currencies are markets. All markets depend on volume and open positions that create liquidity, or the ability to conduct buy and sell transactions with a tight bid-offer spread.

Cryptocurrencies remain an emerging asset class as blockchain offers revolutionary technology for speed and efficiency. However, many of the tokens will fail because they lack the critical mass that leads to liquidity. While 65 cryptos have a market capitalization of over $ 1 billion, fewer than 300 have a market capitalization of over $ 100 million, and fewer than 1,600 are worth more than $ 1 million. With almost 8,600 tokens in circulation in the asset class, over 80% are nothing more than lottery tickets.

Do your homework before investing in any of the smaller cryptos. While they could pay off if they have the utility that gets adoption and PR, most will go broke.

Stick to the best digital currencies when trading as these offer the best liquidity. Market capitalization is crucial, and remember that the trend in the markets is always your best friend.

In the current parabolic environment, it is impossible to pick spikes in Bitcoin, Ethereum, and some other tokens. However, gravity is a powerful force that will eventually lead to significant corrections after a period of explosion.

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