Cryptocurrencies Can’t Be Stopped! 0 48

The acceptance and trading activity in cryptocurrencies cannot be stopped. Trading activity in ETFs, futures contracts and standard cash trades have exploded and continue to gain traction. In comparison, 24-hour trading volume is down from the peaks seen in the spring of 2021, trading volumes in October and November up significantly year over year. The increasing importance of the products used to speculate on the direction of cryptocurrencies shows that interest in this alternative is rising.

Cryptocurrency Volume Peaks

Crypto trading had several peaks and valleys during 2021. In total, volumes during the year were up compared to the trading volumes experienced in 2020. According to Statista, the global trading volumes of cryptocurrencies were higher at the beginning of 2021 than in September and October. No individual month saw more trading volume than May. The all-time high in trading 24-hour spot trading volume was on May 19, 2021. This date experienced a record high of over 500 billion U.S. dollars. Most of the gains were due to speculation around Dogecoin. The rise in trading volume was followed by a sharp decline as  China banned crypto services.

Ethereum Volume Rises With Market Capitalization

Ethereum is attempting to break out to all-time highs, and its gains are coming in tandem with higher trading activity. The currency volume of nearly 29 billion is almost 50% higher than the 3-month average volume of 24-hour spot trading on the second-largest cryptocurrency by market capitalization. This run-up in trading volume compares to Bitcoin, where the current spot 24-hour trading volume is equal to the 3-month average of the trading volume. The market capitalization of Ethereum is 555.5 as of early December 2021, making Ethereum the second-largest market capitalization of all the cryptocurrencies traded.

Futures Contracts are Experiencing More Activity

The introduction of the micro Bitcoin futures contracts has assisted in adding to cryptocurrency trading volume. Bitcoin mini futures trading contract volume surged higher at the beginning of November and then stabilized during the month’s balance. The Bitcoin micro futures contract is 0.1 bitcoin compared to the specification of the Bitcoin futures contract, which is equal to 5-bitcoin. The micro futures contract is financially settled. The average volume of the micro futures contract during November 2021 hit a high of nearly 45,000 contracts and had open interest above 65,000 contracts. These figures compared to the Bitcoin futures contract listed on the Chicago Mercantile Exchange (CME) that average approximately 20,000 contracts and had an open interest average during November of  14,000 contracts.

First Bitcoin ETF in the United States, Added Activity

In October 2021, VanEck launched the first Bitcoin ETF, which helped bring acceptance to the cryptocurrency asset class. The ETF was approved in October by the U.S. Securities and Exchange Commission. The issue for crypto traders is that the new VanEck Bitcoin Strategy ETF tracks the movements of Bitcoin by monitoring the actions of the Bitcoin futures contracts that are accessible on the CME. This ETF cannot hold any digital coins through a wallet with an address. Instead, it can only have Bitcoin futures contracts. According to the investment description of the ETF, the fund does not hold any digital assets directly. Despite these drawbacks, the ETF has brought the opportunity for many institutional investors who could not invest in products listed on futures exchanges or OTC exchanges like the Grayscale Bitcoin Investment Trust.

Is Crypto an Asset or a Currency?

It appears that more people see cryptocurrency as an asset that can store wealth than a currency as of late 2021. The introduction of futures contracts, digital wallets, and ETFs shows that the United States has welcomed cryptocurrencies as an asset class. Some countries like El Salvador have introduced Bitcoin as the official currency of the country. In China, Bitcoin mining no longer exists as the government has cracked down on the use of Bitcoin as a currency or an investment asset. While there is some evidence that Chinese Bitcoin miners have relocated to different regions outside the reach of the Chinese government, the upshot is that the Chinese government does not want to advocate Bitcoin as a currency or an asset. The Chinese government believes that approximately 10% of the crypto trading in China before the ban is still working in China.

The Bottom Line

The upshot is that crypto trading activity is accelerating, but some pockets of the globe have yet to embrace cryptocurrencies. The introduction of futures contracts and exchange-traded funds shows that Bitcoin and cryptocurrencies represent a new store of value viewed as an asset class. Volumes have accelerated, which shows that more cryptocurrencies are changing hands. On December 6, 2021, the CME is expected to launch a micro Ether, further increasing the acceptance of crypto trading. This new futures contract will open the door for an Ether ETF based on the futures contract’s movements. The increased acceptance shows that cryptocurrencies cannot be stopped!

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Paytm Founder Believes Crypto is Here to Stay 0 84

One of the most prominent digital payment companies based in India is Paytm and its founder recently shared his views about the cryptocurrency space. He appears to be quite positive about crypto and notes that it is here to stay. As a matter of fact, he thinks that crypto will become a mainstream technology in a couple of years. The Indian Chamber of Commerce (ICC) organized a virtual conference on Thursday that provided Vijay Shekhar Sharma the opportunity to speak. Paytm’s founder said that cryptocurrency will stay and is the answer Silicon Valley has to Wall Street. 

A multinational technology company, Paytm is based in India and specializes in digital payments. Last week, the company completed its Initial Public Offering (IPO). Paytm disclosed in its IPO filing that its total number of registered users has reached an impressive 337 million and is dealing with 22 million merchants. Sharma opined that he was very positive about cryptocurrencies because they are based on cryptography and in a couple of years, they would also become a mainstream technology very much like the internet that has now become a part of our daily lives. The Paytm founder did admit that currently, people were only using crypto as a means of speculation.

He elaborated that right now, every government appears to be confused about cryptocurrency, but in a time span of five years, crypto would become mainstream technology. Sharma thinks that people will come to see what the world will be like without crypt. But, he was quick to add that this doesn’t imply that digital currency would actually replace sovereign currencies, such as the Indian rupee. The Paytm founder also added that once his company’s revenue goes past the $1 billion thresholds, he will launch the service in some developed countries as well. 

Currently, he said that Paytm was running the largest payments system in Japan in a JV, but they would go without a partner later on. The Chief Financial Officer (CFO) of Paytm, Madhur Deora had said early this month that his company was considering offering bitcoin services to people, if cryptocurrencies are to be legalized in India. However, this does not seem to be likely any time soon because the Indian government has certainly not taken a positive stance towards these crypto assets. As a matter of fact, the government recently made headlines as it is pushing for crypto legislation in the country and not the good kind.

It is expected that a crypto bill will be introduced and passed in the parliament’s winter session that will begin next week. The purpose of the bill is to impose a ban on private cryptocurrencies, but there are expected to be some exceptions. But, since the bill has not been published, it is not clear as to what kind of exceptions will be applicable. There have been conflicting reports and debates, as some people believe that it just might legalize a few cryptocurrencies, while others believe it will ban them completely in favor of the digital rupee to be introduced by the Reserve Bank of India (RBI). 

MELT, GTC, PAL, and more Cryptocurrencies among Highest Gainers in Past 24-hours 0 88

In the list of highest gaining cryptocurrencies, the cryptocurrency on the top is Defrost Finance (MELT). In the past 24-hours, MELT has observed a 192.83% surge in its price, surging it all the way up to $11.97 per MELT. Similar to the price surge in the past 24-hours, MELT’s trading volume in the past 24-hours has increased to $1,177,520. MELT is currently the 3220th largest cryptocurrency in the crypto-verse in terms of its $1,401,512 market valuation.

The next cryptocurrency coming after Defrost Finance is Gitcoin (GTC). In the past 24-hours, GTC has observed a 171.08% surge in its price, surging it all the way up to $25.56 per GTC. Similar to the price surge in the past 24-hours, GTC’s trading volume in the past 24-hours has increased to $1,199,791,917. GTC is currently the 264th largest cryptocurrency in the crypto-verse in terms of its $363,625,405 market valuation.

The next cryptocurrency coming after Gitcoin is PlayAndLike (PAL). In the past 24-hours, PAL has observed a 168.43% surge in its price, surging it all the way up to $0.0000016 per PAL. Similar to the price surge in the past 24-hours, PAL’s trading volume in the past 24-hours has increased to $52,540. PAL is currently the 4780th largest cryptocurrency in the crypto-verse in terms of its $144,015,382,197 market valuation.

The next cryptocurrency coming after PlayAndLike is Elonomics ($ELONOM). In the past 24-hours, $ELONOM has observed a 131.06% surge in its price, surging it all the way up to $0.02629 per $ELONOM. Similar to the price surge in the past 24-hours, $ELONOM’s trading volume in the past 24-hours has increased to $212,424. $ELONOM is currently the 3934th largest cryptocurrency in the crypto-verse in terms of its $26,633 market valuation.

The next cryptocurrency coming after Elonomics is ICE ROCK MINING (ROCK2). In the past 24-hours, ROCK2 has observed an 85.68% surge in its price, surging it all the way up to $0.01744 per ROCK2. Similar to the price surge in the past 24-hours, ROCK2’s trading volume in the past 24-hours has increased to $67,982. ROCK2 is currently the 2229th largest cryptocurrency in the crypto-verse in terms of its $274,300 market valuation.

The next cryptocurrency coming after ICE ROCK MINING is India Coin (INDIA). In the past 24-hours, INDIA has observed a 128.93% surge in its price, surging it all the way up to $0.0000006419 per INDIA. Similar to the price surge in the past 24-hours, INDIA’s trading volume in the past 24-hours has increased to $452,332. INDIA is currently the 3571st largest cryptocurrency in the crypto-verse in terms of its $3,975,380 market valuation.

Even more cryptocurrencies are joining the ranks of top gainers and among these cryptocurrencies are KING, ALLBI, HIKO, and many more.

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