Investors are starting to show interest in other cryptocurrencies after Bitcoin and Ethereum volatility
Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO:ETH) rose, but their gains were eclipsed by those of lesser-known cryptocurrencies with much slower market caps.
What happened: According to a recent Fortune report, many small tokens rode well enough on the waves of Bitcoin and Ethereum to make higher profits than those behemoths.
cardano (CRYPTO: ADA) doubled this month, Binance Coin (CRYPTO: BNB) also rose significantly, while avalanche (CRYPTO: AVAX) tripled in August.
Also read: What is avalanche?
Fortune also cited the surge in the non-replaceable tokens (NFT) market, which quadrupled the value of many tokens in just days.
Some analysts suggest that small assets, such as the aforementioned, are skyrocketing as a result of speculators “moving from the mainstays into newer, more exciting offshoots, as they often do after big runs.”
Other analysts also emphasize that lots of cash in circulation and ultra-low rates are driving investors to “get more and more winning assets.”
What else: Despite this, the report admits some strengths, such as: cardano (CRYPTO: ADA) and Solana (CRYPTO: SOL) are backed by truly strong fundamentals and technological advancements.
Founder and CEO of online exchange eToro Yoni Assia stressed that “there is a lot of excitement in crypto”, and that the company has “seen a lot of exuberance in the market”.
Also read: What is Solana?
Assia sees the lowest interest rates worldwide, a huge fiscal stimulus and inflation as the driving forces behind this increase.
Chief Market Strategist at JonesTrading Michael O’Rourke echoed that sentiment, noting that “with all this money floating around, we shouldn’t be surprised that there are people paying exorbitant amounts for digital pet bricks.”
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