The air was thin and the views were increasingly spectacular for many rising altcoins this week. The crypto-verse as a whole has seen a great deal of interest recently from investors previously on the fence. That's combining favorably with a seemingly green-lights-far-ahead economy and interest rates that might stay elevated longer than expected. Oh, and a top crypto exchange operator just posted the estimates-crushing quarter.
Plenty of coins and tokens were marching higher these past few trading days. Popular utility coin Polkadot (CRYPTO: DOT) was up by more than 9% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence. The same source indicated that Chainlink (CRYPTO: LINK) and Avalanche (CRYPTO: AVAX) had risen by around 10%, while Lido Staked Ether advanced by 14%.
The new ETFs continue to have a powerful effect
Cryptocurrencies like Polkadot and Chainlink are significantly influenced by the current momentum of Bitcoin. The recent surge in Bitcoin, surpassing $50,000 per coin with a remarkable 35% increase in just three weeks, can be attributed in part to substantial and swift capital inflows into newly introduced spot Bitcoin exchange-traded funds (ETFs). These ETFs provide investors with a convenient way to invest in Bitcoin without the complexities typically associated with direct cryptocurrency investments, such as managing digital wallets.
Given Bitcoin's overwhelming market capitalization compared to other prominent cryptocurrencies like Ethereum, it acts as a trendsetter in the crypto space. The allure of holding an asset valued at over
$1 trillion is undeniable, especially when the second-largest cryptocurrency, Ethereum, is considerably lower at $339 billion. Bitcoin's dominance, coupled with the accessibility of new investment instruments like ETFs, is likely to maintain its leading position in the cryptocurrency market for the foreseeable future.
A very solid base
It's important not to overlook another significant factor contributing to the positive sentiment in the cryptocurrency space. Coinbase Global, the exchange operator, has exceeded the expectations of consensus analysts for its fourth-quarter performance, driven by a substantial uptick in trading volume towards the end of the year.
The growth figures for the company are particularly noteworthy, with revenue experiencing an impressive almost 50% year-over-year increase, reaching $905 million. Additionally, Coinbase achieved a remarkable nine-figure net profit, amounting to $273 million. The company's financial performance surpassed predictions, showcasing remarkable success and highlighting the robustness of its operations in the cryptocurrency market.
Should you invest $1,000 in Polkadot right now?
Before you buy stock in Polkadot, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Polkadot wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*.
