The total cryptocurrency market capitalization, according to CoinGecko, reached $2.5 trillion as of May. Bitcoin capitalization of $1.1 trillion completes more than half of the total volume. Ethereum takes the second place $500 billion). The third position is taken by Binance Coin with a capitalization of $102,9 billion.
Over the year of 2020, the most popular cryptocurrency has grown by 750%, and only since the beginning of 2021 its price has increased by more than 100%. In February the cryptocurrency answered "Yes" to the question of whether Bitcoin may cost $50,000. The same answer was received in March to the question regarding BTC rate of $60,000.
Bitcoin prices are setting new records, then moving to weekly lows which is not for the first time. In 2017, the price of the cryptocurrency also grew sharply, but without reaching the $20,000 mark, it turned around and kept at 4-digit prices for almost 3 years.
Bitcoin was invented just 12 years ago. It was a new type of electronic payment system, built around the Internet and a computer network that no one could control. A few years later, thousands of sellers began to accept Bitcoin as a means of payment, in 2015 their number turned into hundreds of thousands and rushed on.
The rise in the price of Bitcoin is attributed to several factors, including the bidding of larger institutional investors and large purchases by large corporations. Tesla, Square and Microstrategy are among the companies that have invested heavily in Bitcoin.
Changes in the top 3 coins, i.e. Bitcoin, Ethereum and Binance Coin always attract the attention of investors as they shape the mood in the entire crypto community and can seriously affect the position of other coins. The logic of this thought is grounded on the following:
- Capitalization directly reflects the popularity of cryptocurrency in the market. The more users a project has, the higher is the volume of operations with its tokens. The more actively they use the cryptocurrency, the higher its value is, since the demand for the coin in the market positively affects its value.
- The more popular a project is, the higher is its impact on the industry it represents. For example, Bitcoin, as the most capitalized coin, is a reflection of the cryptocurrency industry. As a result, BTC problems directly affect the entire digital asset market.
- When a project becomes a leader, other cryptocurrencies grow similarly. Also, on the contrary, the changes can harm analogs of a digital asset dropped from the top.
On Monday, May 3, 2021 the capitalization of Binance Coin exceeded 100 billion for the first time. The altcoin price has been rising since April 25 and during this time it has grown by 34%. One of the reasons for its multiple growths in 2021 is driven by the development of the Binance Smart Chain network, which bypassed Ethereum in the number of daily transactions.
Bitcoin also posted record gains in early 2021, so in future projections, the competition between Bitcoin vs Binance Coin is really heating up. While Bitcoin is enjoying more success than ever before, the potential of Binance Smart Chain just began to open. Bitcoin continues to grow, despite the fact that its value sometimes falls, and often the drops are quite significant. This is a rather interesting area that allows quickly or slowly increasing your capital. But investing in any digital currency does not mean 100 percent profit and so the smart investor will choose both BNB and BTC coins for his portfolio.
There are many ways to buy Bitcoin and other coins, for example, through exchange services and exchanges, for cash, via transferring by phone number etc. The easiest way to buy cryptocurrency is guaranteed by exchange services. BNB to BTC conversion on Godex is the best way to diversify your crypto portfolio fast, anonymously and with the best market rates. Godex provides an opportunity to purchase not only the most popular digital assets included in the top 20 in terms of capitalization but also 200 coins.
