rows · The global crypto market cap is $B, a % decrease over the last day. Read . Aug 19, · Bitcoin’s narrative as digital gold keeps strengthening. As covered in Bloomberg, the prices of Bitcoin and gold have moved in tandem throughout most of affcrypto.de in mind that commodities are not traded 24/7 like cryptocurrencies, but during global trading hours, the relationship between Bitcoin and gold prices has been remarkably strong. Bitcoin Virtual Gold price today is $ with a hour trading volume of $BVG price is up % in the last 24 hours. It has a circulating supply of 0 BVG coins and a max supply of?. Bitsten is the current most active market trading it. In order to explore addresses and transactions, you may use block explorers such as affcrypto.de
Coin market cap bitcoin goldCan Bitcoin Market Cap Hit Higher Than Gold? | Coin Insider
With real interest rates at zero or near-zero levels in most major economies, demand for scarce assets like Bitcoin and gold has spiked globally. This has encouraged investors to hedge their portfolios with Bitcoin and gold. In fact, the day correlation between the two assets reached record levels recently:. The 0. While this value has since dropped slightly to 0.
While many within the crypto space might have shared this view for years, this belief has been increasingly spreading amongst traditional institutional investors as well.
Earlier this year, renown hedge fund manager Paul Tudor Jones disclosed his investment in Bitcoin. This trend is evident when looking at the average size of transactions taking place on the Bitcoin blockchain. The average transaction size seen on August 17 was the highest so far in and the second highest in the last twelve months. With Bitcoin prices remaining far more volatile, though, it is still considered a riskier investment for most traditional institutions, especially if there is a liquidity shock and markets-wide panic as seen earlier this year.
A different type of gold rush has been taking place within crypto this year. DeFi tokens have seen stellar returns amid increased usage and growing liquidity supplied by users. Lending protocol Aave has realized a particularly exceptional price performance with its native token LEND up by over 30x year-to-date. While there has been an increasing amount of speculation among DeFi tokens, blockchain activity also signals growing value coming from user transactions within DeFi protocols.
One common supply-side metric tracking the liquidity provided to these protocols is the total value locked TVL in smart contracts powering these systems. Despite growing criticism about the actual value locked being significantly smaller than reported in DeFi Pulse, on-chain activity for these protocols and their tokens demonstrate thriving activity.
For instance, the number of transactions for the LEND token recently reached an all-time high. Among the many features described, they teased a collaboration with real estate tokenization platform RealT through which they aim to bring mortgages to the Ethereum blockchain. The upgrade will also introduce a series of gas optimizations aiming to lower the cost of using the Aave protocol as Ethereum gas fees continue to climb.
Overall, while there may be inflated expectations and speculative activity surrounding Aave, these upgrades remark its large ambitions to provide finance without frontiers.
While there are no guarantees for Aave and DeFi, there is no denying that these innovations have the potential to redefine finance as we know it. The asset was developed and launched just over a decade ago, and has seen an enormous gain in market cap, trading price, and popularity since inception and it continues to show signs of bullish growth. The gold market in the past decade has remained mostly stable, with the exception of a sharp decline in From there, the precious metal regained its value to see a positive incline in value over the past two years.
Bitcoin has seen a lot more volatility in the past few years than gold, given how the market has been in a constant state of adoption and correction. Bitcoin saw its first spike at the end of , marking its first cycle of increases. Since then, it continued at a reasonably steady rate until midway through last year, where it lost and gained value with characteristic volatility. Like gold traders, Bitcoin and cryptocurrency traders tend to buy and sell according to numerous factors, including the price of fiat assets and the economic movements of the US Dollar.
As the US Dollar seems to drop, both Bitcoin and gold rise in value. Whether this will happen and — if it should — whether Bitcoin market cap and value can hold above that of gold will be seen in time.
If Bitcoin does exceed gold in value and market cap, it will likely be at the mass adoption of the use of cryptocurrencies for both trading and daily transactions across the globe.
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