The cryptocurrency market is becoming a huge industry now. Although it is relatively new compared to other financial markets, it has been successful in making waves and hitting the headlines of newspapers around the world. Some even believed that it will soon change the landscape of financial and marketing industry.
Although there are some questions regarding its credibility and reputation, cryptocurrency market has enjoyed warmed reception from thousands of investors and its growth throughout the years is a testament of its dominance in the future. If you are still not paying attention, it’s high time to shift your focus to these three main reasons why it gets bigger and bigger.
Cryptocurrency market received a solid support from big firms through Initial Coin Offering or ICO. According to the figures from research firm Autonomous, these companies have raised more than $1 trillion in the first six months of 2017 through a robust ICO activity.
Among different sectors, the financial technology firms led the charge as the most performing companies through ICO. They have collected more amount of money in digital currency compared to the investment they made.
The demand for crypto has spiked higher as people were lured with its ability to raise capital and used them for other transactions such as payments and exchanges.
Recently, the cryptocurrency market has reached its highest market capitalization of all time as it breached past the $160 million-mark. One factor for this feat is the growing acceptance of people to digital currencies. The 850% advancement of the market this year can be accounted to the greater adoption of investors. This push cryptocurrencies to an upward trend as investors continue to mob the market.
As a result, major crypto, such as Bitcoin and Ethereum, are reaching record highs in terms of trading prices.
Investors using hedge funds on digital assets is another reason why cryptocurrency market continues to grow bigger. Based on the research, the number of hedge funds jumping into the fray is now more than 50.
According to reports, more hedge funds owner will start purchasing digital assets as soon as legal papers are done, which is expected to drive prices into dramatic levels.