While Bitcoin soars unimaginably after receiving recognition from the global investors, major altcoin Ethereum and Ripple are following the lead.
Given the political instability permeating the United States of late, the Federal Reserve minted excessively, thereby raising possible inflation fears. Now, it seems that many hot shots are using Bitcoin as a hedge against inflation.
No one is complaining about that because other cryptocurrencies seem to be picking up in value. Ethereum’s value increased above 6% and is now valued at $597 as of the 23rd of November.
This amount is the highest it has grown since the middle of 2018. This is not anywhere close to the $1,500 value, which the crypto reached in 2018. But this is a welcome development because it is growing fast after the pandemic effects, which pushed the value to the lowest. Another crypto recording an impressive increase is Ripple, which has doubled its value in November 2020 alone.
The cause of this value hike is as a result of the Bitcoin value that skyrocketed. Bitcoin has recorded a 160% increase this year alone, and on Monday, the digital currency was trading at $18,632.
Ripple and Ethereum look intense for long-term
The two digital currencies may have soared in value, but they are nowhere close to Bitcoin’s market capitalization. Right now, Ripple represents $48.5 billion in market capitalization, while Ethereum stands at $40.6 billion. On the other hand, Bitcoin was at a $336 billion market cap last week.
Given the increase and growing interest in Bitcoin, many crypto experts already see a great future for Bitcoin. Accordingly, the MD of Grayscale Investments, Michael Sonnenshein, stated that Bitcoin would play a big role in upcoming money evolution.
Notable reasons behind the price surge
Another thing to attribute to the growing value of Ethereum is the pandemic. Due to the mandated quarantine, many people spent time online and noticed the unending opportunities in crypto investment.
However, some experts like Bernard Meyer expressed his concern over the sudden influx of new investors who may not know the markets very well before investing. More so, Meyers believes that these new entrants may be using smart contracts on Ethereum without knowing that most of them have security issues.