Even though this industry is very young, it seems like it has had very interesting changes in the market. Especially since, at the very start, the industry itself was not very popular, and it needed time for it to grow in order to get to this position on the market it has now. The value of it has changed and followed the growth and development of the cryptocurrencies as well as the expansion of usage of them on the market itself. How much is it worth now, and what can affect it will be investigated in this article.
Number of cryptocurrencies
As the market has grown, over the years, the number of available cryptocurrencies grew as well. Ten years ago, there were roughly six hundred established currencies, when nowadays, this number has more than tripled. The number of available currencies that can be used to trade and be dug up in the first place has slowly increased during the years. This has led to an increase in the size of the market. As the size of the market increased, there was an increase in the inflow of the money and an increase in the value of the market itself.
It is quite peculiar that the tri giants are holding the entire industry, and these are Bitcoin with all of its handles, XRP and Ethereum. These giants are not only dictating the values of the market, but the market itself is tightly connected to the value of these two. Meaning that if some of them would start losing on the value, it would for sure, reflect on the market and the whole industry.
Estimates are that the amounts of money these have as a share in the industry are different, and some states that the bitcoin is close to eighty billion US dollars. XRPs estimated value in the industry itself is somewhere around twenty billion, and last but not least, Ethereum with a bit more than ten billion.
As you can see, Bitcoin is holding most of the market money, and this may be very important, since the changes in the values of the handles of this coin, and in the coin itself may lead to substantial changes in the industry’s worth. Ethereum has shown a really tight connection with the industry and the worth of it, due to the nature of the coin and how it works; so these two are dictating the worth.
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Changes in the industry worth
As the industry expanded, alongside the technological advances and an increase in the trust in the market, the value has increased as well. The growth was slow, but not too steady since it has relied on the main currencies that are pulling the values. Some may remember the rapid increase in the value of the bitcoin a few years back, where in the few months the values skyrocketed and led to a massive exchange of the coin and the profit of the ones who sold it.
This was followed by the decline in the value and in the industry’s worth as well. It is interesting that the market had its ups and downs, but after the bitcoin movement and stabilization has established, the industry has continued to be very steady in its growth. This increase is slow, but it is evident that more and more people are using this type of currency.
The demand has led to the appearance of more and more available cryptocurrencies. Even bitcoin released a few handles in order to make this one available to even more people. This led to more diggers and users. This consequently made the industry expand even more and make more in the profit and value as well.
What can affect the worth of the industry?
When it comes to the industry worth, like any market that is dependent on the specific product, there are few things that can and are affecting this one as well.
After the market crash in 2008, the cryptocurrency market started thriving, due to the fact that people started seeing it as safer to be used, and less prone to the crash. This is somewhat true since there were no big changes in the prices of the currencies’ values if we exclude the change in the bitcoin values a few years back, where there was a steep incline followed by the surge a few weeks later.
Like any market, this one is affected by global disasters such as epidemics and floods, fires, and earthquakes, and it seems like when there is a positive correlation between these. This means that as we have the events that are affecting the global economy and the business industry and as the values of regular currencies are changing and declining, making the global market more unstable and less in worth, the cryptocurrency industry is behaving the opposite of this. Meaning that as there is a decrease in the regular market values, the cryptocurrency industry is increasing in its value due to the fact that the people perceive it as more stable and are investing more in it.
This correlation has noticed since there is a very specific relationship between bitcoin and other currencies and the rate of trades that are being made. Very peculiar event is occurring, since people are pulling away from the funds from the stock market as the values fall, and invest into the industry that is showing steady growth and that it is somewhat unaffected by the natural disaster events This may be due to the fact that the industry is being regulated unintentionally by the people since they are investing in the industry as soon as there is a decrease in values in the regular market.
When it comes to the value of the cryptocurrency industry it is evident that there is a steady growth in the market value. There are three coins that are dictating and holding the most of the market share; these are Bitcoin, XRP, and Ethereum. The industry is slowly increasing in the values and this is evident; as there is a correlation between the natural disasters and increase in the values and this is due to the fact that the industry as a whole is being perceived as more stable in these conditions.