Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) rallied, but their gains were eclipsed by those made by less well-known cryptocurrencies with much slower market caps.
What Happened: According to a recent Fortune report, many minor tokens rode the waves made by Bitcoin and Ethereum well enough to rake in higher gains than those behemoths.
Cardano (CRYPTO: ADA) doubled this month, Binance Coin (CRYPTO: BNB) also rallied significantly, while Avalanche (CRYPTO: AVAX) tripled in August.
Read also: What is Avalanche?
Fortune also cited the nonfungible tokens (NFT) market’s rise, which had the value of many tokens quadruple in just days.
Some analysts suggest that minor assets such as the aforementioned ones skyrocketing is a consequence of speculators “moving from the mainstays to newer, more exciting offshoots, as they often do after big runs.”
Other analysts also highlight that lots of cash in circulation and ultra-low rates push investors to “ever-wonkier assets.”
What Else: Despite that, the report admits some assets such as Cardano (CRYPTO: ADA) and Solana (CRYPTO: SOL) are backed by actually strong fundamentals and technological advances.
Founder and CEO of online exchange eToro Yoni Assia highlighted that “there’s a lot of excitement in crypto,” and the firm has “seen a lot of exuberance in the market.”
Read also: What is Solana?
Assia views rock-bottom interest rates worldwide, a massive fiscal stimulus, and inflation as the driving forces behind this rise.
Chief Market Strategist at JonesTrading Michael O’Rourke echoed that sentiment, noting that “with all of this money floating around, we should not be surprised that there are people paying exorbitant amounts of money for digital pet rocks.”
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