Home Financial products Smaller cryptoassets in demand as eToro investors seek to diversify

Smaller cryptoassets in demand as eToro investors seek to diversify

2
0
  • Cardano overtakes Bitcoin as most owned crypto on eToro in Q2
  • Dogecoin soars in popularity, becoming the fifth most owned crypto
  • Tron was the biggest driver in the first quarter

Retail investors are growing confident about the potential of cryptoassets, despite this quarter’s market correction, with new eToro data revealing an increase in the number of cryptoassets held in the last quarter (Q2) .

Surprisingly perhaps, Cardano’s ADA overtook Bitcoin to become the most owned crypto in the second quarter of 2021, with a 51% increase from the previous quarter. Bitcoin, which led the crypto-asset bull run at the start of the year, has remained popular see a 42% increase in demand however, he was eclipsed by ADA and slipped from first to second.

Simon Peters, crypto market analyst at eToro, commented:

“During the second quarter, Cardano provided a clearer roadmap for its upcoming Alonzo hard fork. currently in the testing phase. If successful, it will bring smart contract functionality by enabling smart contract writing and deployment for the first time on the Cardano blockchain. This upgrade will be important because it will allow developers to build projects on the network, helping Cardano to position itself as a true “competitor” of Ethereum. The price of ADA has climbed over the past quarter, suggesting investor optimism over Alonzo’s hard fork and Cardano’s ability to challenge Ethereum in the long run.

Ethereum, which has seen a sharp rise in price this year, has also grown in popularity, seeing a 79% increase in the number of investors holding the asset. This is ahead of the much anticipated London hard fork, slated for July, which will see increased functionality added to the network and preparations for the Serenity (ETH 2.0) upgrade scheduled for 2022. It will also include the EIP- update. 1559 which will change how gas charges are paid on Ethereum 1.0 in the future. This will see the base fee adjusted to market rates, with the ability to speed up transactions by tipping minors.

Simon Peters said,

“Cryptoassets have had an exciting year, with major milestones in terms of price movements and an increase in institutional investments signaling greater adoption by the traditional financial services ecosystem.

Regardless of the headlines, we urge retail investors to be aware of the risks when investing in crypto and to do your research before investing.

Most Held Cryptoassets Among eToro Customers Worldwide in Q2 2021
Rank Cryptoactive Ranking Q1 2021 Q2 2020
1 Cardano (ADA) 2 6
2 Bitcoin (BTC) 1 2
3 Ethereum (ETH) 4 3
4 XRP (XRP) 3 1
5 Dogecoin (DOGE) N / A N / A
6 TRON (TRX) 6 13
7 Stellar (XLM) 5 5
8 IOTA (MIOTA) 8 11
9 Litecoin (LTC) 7 4
ten Ethereum Classic (ETC) 12 9
Source: eToro. Data correct as of 01.07.2021.

The data in this table represents the top ten crypto-assets held by global investors on the eToro platform in the second quarter of 2021. This does not include positions held as CFDs.

Investors diversify in search of the ‘next Bitcoin’

Despite the focus mainly on cryptoassets with the largest market caps, the biggest moves in the second quarter came from smaller cryptoassets, with Tron (TRX) and Ethereum Classic (ETC) leading the way. Tron (TRX), in particular, recorded impressive gains, with a 163% increase in the number of global users holding the asset in the second quarter compared to the first quarter of this year, and Ethereum Classic saw an increase of 151% quarter over quarter, alongside a 247% year. -increase over one year.

Simon Peters continued,

“Rather than focusing only on Bitcoin and Ether, where many investors can only own a fraction of a coin, we are seeing an increasing demand for cheaper coins. With Bitcoin ownership out of reach for most retail investors, many are looking for cheaper alternatives like ADA, MIOTA, and TRX which are priced around $ 1. With the staking rewards available on eToro for Tron and Cardano, investors are now able to reap the rewards for holding these assets for the long term, which helps drive demand.

The emergence and growing popularity of altcoins means that the crypto ecosystem is getting stronger, with greater diversity and more and more use cases. It’s great to see investors look beyond the store of value and open their portfolios to assets that they believe will not only help hedge against growing problems like inflation, but provide solutions to them. other assets.

This article originally appeared on the eToro blog.

PUBLICITY

Warning

eToro is regulated in Europe by the Securities and Exchange Commission in Cyprus, by the Financial Conduct Authority in the United Kingdom and by the Australian Securities and Investments Commission in Australia.

eToro USA LLC – investments are subject to market risk, including possible loss of principal.

eToro AUS Capital Pty Ltd, AFSL 491139. eToro AUS Capital Pty Ltd offers CFDs on cryptoassets. CFD trading does not result in ownership of the underlying assets. CFDs are leverage and risky financial products and may not be suitable for all investors. You can lose a lot more than your initial investment. This information is only general advice. It has been prepared without taking into account your goals, your financial situation or your needs, and you should, before acting on the advice, consider the suitability of the advice, taking into account your objectives, your financial situation and your your needs. You should consider our PDS before making any decision on whether to trade CFDs.

This communication is for informational and educational purposes only and should not be construed as investment advice, personal recommendation or an offer or solicitation to buy or sell financial instruments. This document has been prepared without taking into account the investment objectives or the financial situation of a particular recipient, and has not been prepared in accordance with legal and regulatory requirements intended to promote independent research. Any reference to the past or future performance of a financial instrument, index or packaged investment product is not and should not be considered a reliable indicator of future results. eToro makes no representations and assumes no responsibility for the accuracy or completeness of the content of this publication.

This content is sponsored and should be considered promotional material. The opinions and statements expressed here are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not an affiliate or owned by ICOs, blockchain startups, or companies that advertise on our platform. Investors should do their due diligence before making high-risk investments in ICOs, blockchain startups, or cryptocurrencies. Please note that your investments are at your own risk and that any loss you may suffer is your responsibility.

follow us on Twitter Facebook Telegram

View the latest industry announcements

Featured Image: Shutterstock / Vladimir Sazonov / Digital Store



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here