The capitalization of cryptocurrencies has returned to $1 trillion, growth in the top 30 was led by MATIC, NEAR and ETC
The total value of digital currencies exceeded $1 trillion, recovering after falling in the wake of the tightening of the Fed’s monetary policy on Wednesday. Yesterday, the Bank of England also decided to raise the rate to 3%, breaking a 33-year record for this indicator.
The growth of cryptocurrencies against the background of a decline in stock indices shows that digital assets have become more resistant to tightening monetary policy.
Investors are once again starting to pay attention to the advantage of programming inflation in the blockchain code. The economy of cryptocurrencies is defined by developers at the start and it can be changed only by agreeing with the community that controls the nodes of the network.
During yesterday’s trading, investors paid the most attention to Polygon (MATIC), Near Protocol (NEAR) and Ethereum Classic (ETC), whose tokens increased by 12.5%, 5.6% and 4.5%.
The growth of MATIC was quite predictable and has a short-term character. IT company Meta has chosen Polygon as the first platform for test purchases and sales of NFT published on social networks Instagram and Facebook.
Tests of a new set of tools began yesterday, thanks to which users will be able to trade unique tokens in mobile applications and independently issue their own NFTs. At the moment, social networks only allow account owners to show their collections by connecting a wallet.
As a result of yesterday’s growth, MATIC has come close to Solana and has every chance of getting into the top 10 cryptocurrencies. The problem is that yesterday’s price momentum has a short-term effect.
The growth of NEAR may result in a long-term trend. The Near Protocol blockchain overcame the bar of 20 million wallets in October, starting the year with 2 million users. The network surge in activity began two weeks ago and coincided with the launch of the Sweat Economy application, which is a “movement economy”.
The airdrop of this Move to Earn class project has reached 13.5 million users on different blockchains and Near Protocol is one of them. If Sweat Economy succeeds in repeating the success of StepN, new users will continue to arrive and raise the value of the altcoin NEAR.
The growth of Ethereum Classic was the reaction of investors to the results of the last meeting of Ethereum developers to discuss the Shanghai hardfork. The most anticipated update will unlock the frozen ETH validators in the deposit contract, as well as launch EIP 4844 with the proto-danksharding mechanism.
This is the first step in the implementation of sharding – segmentation of the blockchain will reduce fees and speed up transactions, but this issue was not discussed at the last meeting. A number of analysts believe that investors will be disappointed by the lack of changes in the Ethereum ecosystem for half of next year.
So far, the meaning of the conversion of the Ethereum PoS blockchain is not obvious, except for the unequivocal gain of Ethereum Classic in the form of a sharp jump in hashrate. The massive influx of miners has increased the security of the Ethereum fork, the growth of which now largely depends on the arrival of landmark projects in the ecosystem.
