The Rise of Cryptocurrencies
|2017 was the mania year of cryptocurrencies without a doubt, ICOs (Initial coin offering) exploded in 2017 raising more then $3.5 billion in cryptocurrency and currently there are more then 1,400 new coin in the market compared to six years ago as bitcoin was the only cryptocurrency people talked about.
The cryptocurrency market continued its growth in 2017 as the total market capitalization grew from 17 billion to 600 billion with prices surging to record new highs during the whole year.
Cryptocurrencies Market Capitalization in 2017
Bitcoin had a very good year up more than 1,300% and its price reached $19.500. However, despite its headline-grabbing performance, Bitcoin was one of the worst performers among the top 10 cryptocurrencies by market capitalization compared to the +9.000% gains achieved by Ethereum and the outstanding +35.000% done by Ripple.
Cryptocurrencies Return in 2017
At the beginning of 2017, bitcoin had an 88% share of the cryptocurrency market. Ethereum had only four percent, and bitcoin cash was non-existent. As 2017 come to an end, the market share of bitcoin shrunk by more then half to 38% percent reflecting the shift in the digital market.
The latest news by the end of 2017 was about Bitcoin entering Wall Street as it become accessible for trading on two futures exchanges which opens the door for institutional investors and new type of traders to enter the market.
The higher demand for the digital currency in the world is one of the main reasons driving the prices higher as this is a basic economic fact. The below chart showing total number of Bitcoin transaction since 2009 shows the exponential growth seen in the crypto-world as more people started using Bitcoin for many different reasons.
Bitcoin Total Number of Transactions
The chart below is showing miners revenue divided by the number of transactions which gives the cost per transaction for Bitcoin which is one of the disadvantage facing users and most likely the fees will keep rising during 2018 to reach new levels around ( $180 – $230 ).
Bitcoin Cost per Transactions
Recap:
Cryptocurrencies are entering an important era with the recent introduction of Bitcoin into the futures market and the prices of alt-coins exploding to the upside driving the market capitalization higher which can reach 1 Trillion during this year.
Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.