Investors hunt for the next bitcoin

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March 08 2021
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The high price of bitcoin following its 2021 rally has seen investors focus on trying to pick the next booming crypto currency, an industry expert has said.

According to eToro, crypto currency ADA has surged in popularity over the last month, becoming the second most traded crypto asset as investors look to diversify their exposure and find the next bitcoin.

The investment platform said investors are becoming more confident, with the price rising to a new all-time high of US$1.4536 during the last weekend of February, as investors backed the new functionality in the Goguen rollout.

Crypto expert at eToro, Simon Peters, believes markets are evolving, with investors focusing on new coins due to only being able to purchase fractions of a single coin from the more established bitcoin and ethereum.

“Investors are looking for the next bitcoin, meaning they’re investing in cheaper tokens like Cardano’s ADA, IOTA and Tron, all of which are priced around the $1 mark,” Mr Peters said.

“We believe this year could see this hunt for the next ‘bitcoin’ intensify, as the market widens and other coins gain their own following.”

Bitcoin retained the top spot in February as the most bought coin on eToro, despite a 24 per cent drop in demand.

The currency is, however, coming off a volatile month, peaking at US$58,142 before experiencing a widely anticipated retracement, falling as low as US$43,000 before recovering once more to its current level of US$49,000.

This market correction was widespread and also hit demand for ethereum, which saw a 12 per cent drop in trading activity on eToro as the price fell to a one-month low of US$1,300, before recovering to the current level of US$1,587.

However, despite market corrections, February was another busy month for bitcoin and ethereum. Both have seen prices skyrocket since the start of the year, but while there was volatility, the wider adoption story continues to power both crypto assets.

“With more and more real-world cases of crypto adoption, it remains a question of when, and not if, these assets will become more widely used in our everyday lives. We expect volatility to continue, as with all emerging assets, as crypto’s journey is still very much at the beginning,” Mr Peters concluded.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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