Cryptocurrencies rallied $25 billion over the weekend en route to their highest level in almost two months, offering the latest confirmation that bear-market pressure had eroded.
The Rally Continues
The total value of all cryptocurrencies in circulation reached a high of $441 billion on Sunday, according to CoinMarketCap. At the time of writing, the total market was valued at nearly $439 billion. That’s the highest level since early March.
Cryptocurrencies have added a combined $47 billion over the past seven days, with altcoins accounting for nearly 79% of the gain. As of Monday, altcoins represented more than 63% of the market.
For cryptos, a sharp rise in trading volumes is one of the strongest signs that the bull market has returned. Using bitcoin as a proxy, trading volumes have increased by more than a third since Apr. 6, the day the market bottomed. As of Monday, nearly $33 billion worth of cryptocurrency transactions were carried out on the major exchanges.
In terms of individual currencies, EOS and NEO were the biggest percentage gainers within the top-ten. EOS jumped nearly 11% to trade at $21.08, its highest on record. NEO prices surged 18.3% to $91.07, the highest since March.
Other strong performers in the top-ten included Stellar Lumens, which rose 5.9% to $0.456, and Tron, which added 6.9% to reach $0.087.
Meanwhile, bitcoin rose 0.9% to $9,415, Ethereum gained 0.8% to $688 and Ripple XRP was up 0.9% at $0.874 (all figures according to CoinMarketCap).
Cryptocurrencies have been riding a wave of momentum for the last three weeks, as the end of U.S. tax season and the bottoming of prices lured investors back into the market. Gains have come despite ongoing chatter over regulation as well as signs that a bitcoin whale was preparing to liquidate hundreds of millions of dollars in BTC.
The latest uptrend has been accompanied by bullish projections covering bitcoin, Ethereum and other digital currencies. Interestingly, Tom Lee of Fundstrat Global Advisors compared bitcoin’s mass adoption to Metcalfe’s Law in predicting a possible price point of $91,000 in just tow years. The forecast came long before the market turned the corner in early April (in fact, it was made well before the market bottomed on April Fool’s Day).
Last week, researchers at DeVere Group, an international finance consultancy, predicted a fourfold increase in ether prices this year.
For now, optimism is far outpacing the fear, uncertainty and doubt (FUD) that normally surrounds cryptocurrencies. However, investors should be aware that FUD-related headlines are likely to grow in number the more valuable cryptos become.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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