The crypto market has expanded exponentially in the last years especially with the latest bull cycle that has generated newfound fame for cryptocurrencies in general and also enhanced the competition in this space.
If you're interested in learning more about the factors that have driven the growth of the crypto market in this article, we will provide an overview of the main reasons why the market has reached significant growth and has over 130 million crypto users.
The Bull Market Cycle
The first reason why the crypto market is expanding is the bull market cycle that was fueled by Bitcoin’s bull run which started after the third halving in May 2020. This halving was particularly successful because it halved the block reward to 6.25 BTC and it has made the ongoing supply of BTC even more scarce. So, there were a lot of new investors that wanted to add Bitcoin to their portfolio as the price continued to rise.
If you want to learn more about the crypto world a well-informed and trustworthy platform is learning crypto where you can find in-depth information about the crypto market and different crypto terms. So, if you're a complete beginner or you simply want to brush up your knowledge of different topics this is a perfect place to learn everything about crypto.
The bull cycle translated to other successful cryptocurrencies on the market such as Ethereum, Litecoin, Cardano, and many others. It has also motivated important entities including governments and businesses to create their own altcoins. So, much so that today there are over 10,000 cryptocurrencies on the market.
Today online trading platforms are another reason why crypto trading is growing. As cryptocurrencies are decentralized and distributed virtual assets there isn't one online trading space. Actually, the crypto market is also distributed throughout many different trading platforms that have specific features. This is another advantage for investors as there is an abundance of options accessible on both mobile and desktop devices, while a lot of them are integrated with Bitcoin wallets.
The Value of Crypto
The main factor which fuels the growth of the crypto market is the potential for cryptocurrencies in a very short amount of time to reach new high prices in the market. For example, Bitcoin has achieved incredible growth after the last halving of over 170% in 2020.
In comparison, the price of Bitcoin was in a range between $9,000 and $8000 before this event. So, in a year Bitcoin has achieved incredible growth and hit the price of $20,000 in December 2020.
Another example is Ethereum that also had incredible growth and found a lot of investors that support that cryptocurrency.
Moreover, cryptocurrencies have unique attributes that make them appealing for different users so investors again are at an advantage because they can easily diversify their portfolio and add different virtual currencies that offer specific advantages.
The crypto market is known as one of the most liquid markets worldwide. You can make changes to your portfolio in an instant as the currencies are based only in a digital format, and the crypto market is still developing and growing which means it offers numerous opportunities to its investors.