Cryptocurrency and NFT development: Market capitalization review

In recent years, the financial world has undergone a revolution in the field of digital assets. Two of the most prominent players are cryptocurrency and ugly tokens (NFT), which were a worldwide traction. This article will be in the influence of NFT on market capitalization and will explore Ethereum as a leading platform for these innovative assets.

growth of cryptocurrency

Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) were first introduced in 2009. Since then, they have become the basic principle of a digital economy, pouring the capital of many investors in these assets. The increasing popularity of cryptocurrencies can be attributed to several factors:

1
Decentralization : Cryptocurrencies operate in a decentralized network, allowing unrelated transactions without intermediary.

• Limited delivery : Most cryptocurrencies have a limited offer of coins that contribute to their lack and value.

3
Security : The exchange of cryptocurrencies and wallets provide stable security measures by reducing hacking and loss risk.

Appearance nft

Non -Pline (NFT) chips are unique digital active that reflect the property of a disposable product. Since the introduction of platforms such as Opensea and rare in 2017, have gained popularity. NFT offers several advantages over traditional arts and collection items including:

1
Property : NFT offers a certain property to a certain digital asset.

• Lack : NFT rarity and uniqueness contribute to evaluating their value.

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Transparency

: NFT is listed on public scholarships, which makes them easy to follow.

Impact on market capitalization

Because cryptocurrencies and NFTs have gained popularity, market capitalization has increased significantly. According to a Coindesk report, the total capitalization of cryptocurrencies exceeded 2 trillion of its peak in January 2021.

Here is a distribution of market capitalization in some of the best cryptocurrency:

| Crypto market capitalization (January 2019 – January 2021)

| — —

| Bitcoin (BTC) $ 350 billion

| Ethereum (ETH) $ 430 billion

| Solana (soil) $ 18.5 billion

| Cardano (ADA) $ 10.6 billion

Ethereum growth

Ethereum was at the head of the NFT revolution with its native ether of cryptocurrency (ETH), which is the main motor force of growth in this space. The decentralized platform of the Ethereum network allows developers to create and implement smart contracts, allowing the creation of unique digital assets.

Ethereum has registered a significant increase in recent months, which is facilitated by several factors:

1
Stablecoins : Introduction of the Stableooin platform, such as USDC and DA, increased the ETH demand.

• NFT market : NFT market growth, such as Opensea and rarely, have aroused interest in ethereum -based assets.

3
Collaboration : Development of collaborative blockchain platforms, such as Cosmos and Polkad, has expanded the coverage of the Ethereum ecosystem.

Conclusion

The growth of cryptocurrency and NFT is due to a significant increase in market capitalization. As they continue to be traction, we can expect adoption in different sectors. The impact on market capitalization will be influenced by factors such as demanding demand, the development of new NFT market places and the permanent extension of the Ethereum ecosystem.

Suggestions

1
Investments : Consider investment in cryptocurrency and NFT with long -term perspective.

• Diversification : Various your portfolio to reduce the risk, granting some of the investment of these assets.

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