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- He and he, move unevenly, near all-time highs
- Theta: member of the top 15 of the asset class
- Filecoin: in the top 20
- Increasing Market Cap Creates Critical Mass Going Forward
- Search for rough diamonds in the crypto patch
Finding value in the industry takes homework. For today’s bargains to become tomorrow’s superstars, they need liquidity to build the critical mass that will drive them to success. The and the are two digital currencies that are in the upper tier of the asset class. They have already set some of the basic requirements for future success and higher values.
Bitcoin and Ethereum move unevenly near highs
March was a busy month in the and markets. Bitcoin made new all-time highs on March 15.
The chart highlights the move toward highs of $ 62,080 in mid-March and a decline to $ 50,595 10 days later. Bitcoin has reversed 18.5% since hitting highs. The price returned to the $ 60,000 level on the last day of March.
While the was hitting new highs, futures peaked lower in March after starting trading on February 8. The introduction of futures pushed the price of the second largest cryptocurrency above the $ 2,000 level in February.
In March, Ethereum hit highs of $ 1,954.25 on March 15 and was down 19.7% to $ 1,570 on March 25. Ethereum returned to record new highs at $ 2,185.50 on April 6.
Meanwhile, the global market capitalization of the digital currency market of 9,162 currencies stood just above the level of 1.9 trillion dollars at the end of the first quarter of 2021. The market capitalization rose above the level of 1 trillion dollars for the first time in 2021.
Bitcoin and Ethereum are large-cap currencies. Mid-cap valuations are $ 10-60 billion. As of March 31, there were only 13 mid-cap coins. Theta (THETA) and filecoin (FIL) fall into the category of mid-cap digital currencies.
Theta: member of the top 15 of the asset class
As of April 7, theta was the eleventh cryptocurrency. Theta’s website describes the digital currency as a decentralized video broadcasting network and a cryptocurrency. The platform offers technical and financial solutions for problems related to the streaming industry.
The Theta blockchain incentivizes the sharing of bandwidth across the network. Theta users can contribute their surplus bandwidth and computing resources to the theta cryptocurrency. Users can use the ethereum ecosystem.
As of April 7, the theta’s market capitalization was $ 12.318 million, with the price at $ 12.31.
The graph shows the range of the digital currency from less than 10 cents in 2018 to the highs recorded at $ 13.25. It reached near highs on March 31 and reached a record high on April 7, 2021.
Theta has been moving up the digital currency hierarchy as the currency has outperformed many of the other over 9,161 cryptocurrencies.
Filecoin: in the top 20
Filecoin is a blockchain-based open source public cryptocurrency and digital payment system that is a blockchain-based cooperative digital storage and data retrieval method. Protocol Labs created Filecoin and a critical mass, in addition to the Interplanetary File System, allowing users to rent unused hard drive space. The Filecoin specifications provide transparency to the cryptocurrency.
On April 7, filecoin was the 15th leading digital currency with a market capitalization of $ 10.032 billion at $ 153.80 per coin.
The chart illustrates the range from just over $ 20 to over $ 195 since October 2020, when filecoin began trading.
Increasing Market Cap Creates Critical Mass Going Forward
Theta and filecoin trends are bullish. The value of digital currencies, their market capitalizations, and their place in the asset class rankings have been increasing. Filecoin was under $ 24 per coin in early February 2021. The price was more than six times higher on April 7. The theta fell below $ 1 in late 2020 and experienced explosive growth in recent months.
Theta and filecoin did very well in terms of building critical mass in the first quarter of 2021. The next few months will see if the currencies can maintain the current rate of growth.
Search for rough diamonds in the crypto patch
I see the digital currency asset class as a field full of diamonds and landmines. With the thousands of coins circulating in cyberspace, many are little more than landmines that will never reach the critical mass necessary to provide any benefit to investors and that could ultimately convulse to extinction.
When looking for diamonds in the asset class, liquidity is critical. Look for digital currencies with upward price trends and market valuations that are moving up the market hierarchy. Theta and filecoin fall into the category of cryptocurrencies that have been diamonds in recent months.