While the crypto community focuses on the top table tokens at this period of relative resurgence in price, some small name cryptocurrencies are churning out significant price gains as well and gradually moving up the ladder.
Majority of crypto speculators are known to concentrate on the tokens with larger trading volumes. The reason for this could range from simple awareness in terms of token existence, to the assumption that higher volume cryptocurrencies are naturally subject to lesser volatility than their lower volume counterparts.
Why Tokens Rise in Price
Indeed, the popularity of any given cryptocurrency or token is mostly determined by its use-case and the level of adoption it receives. This is evident in the rate at which Ethereum grew, and how it’s token, ETH consequently appreciated in price over its short period of existence so far. This is largely linked to the massive adoption that the platform experienced, especially with the advent of ECR20 tokens that fuelled the ICO boom of 2017.
The reverse of this scenario is also logically explainable, as despite the overall slump in the crypto market in 2018, Ethereum’s ETH appears to be hit the hardest. Reason for this has been attached to the massive sell-off of ETH tokens by most of the projects that acquired them in the course of their token sales. These project are now converting their ETH tokens in order to pay for actual project development as proposed.
Still in line with adoption, and the fundamental sentiments surrounding use-case and increased demand, the crypto community is beginning to witness some resurgent price activities. Typical among these is the XRP token which has been experiencing significant surge in price, a development that many believe isn’t unassociated with the recent adoptions that it is experiencing from some major systems.
A Place For the Smaller Players
A deeper look down the cryptocurrency ladder also reveals other brilliantly performing tokens that are showing impressive upward momentum. One to catch the eye is the crypto-backed loans token, Nexo.
In the past one week, the price of Nexo has jumped from around $0.05 to over $0.09, representing about an overall 80% surge in price. A deeper look into developments surrounding the token reveals some increased activity in terms of adoption, like in the case of XRP.
By introducing a relatively easy way to access its products through the “Get Loans” button placed on every page on one of the most visited cryptocurrency websites, brand visibility is increased, which leads to greater participation by users. Nexo has also expanded its services to cover over 40 fiat currencies across more than 200 jurisdictions.
The crypto ecosystem has been through the ICO era where new ideas and existing projects explored the unregulated crowdfunding system to raise funds mainly for development. Now we appear to be in the season when developers would have their noses deep into working out these projects as described in the numerous whitepapers that the community has seen. One thing is sure, sooner than later, most of these projects will launch, and actual use-case scenarios shall come to life.
Naturally, anyone would expect increase in value of numerous tokens, just like we are seeing today. However, this is the cryptocurrency marketplace, sometimes it has a mind of its own and goes whichever direction it desires.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.