Cryptocurrencies rebounded sharply on Monday as investors returned to the market. Bitcoin It traded above $53,000 for the first time since November 2021, which is pushing the overall market higher.
An even bigger movement occurred. Ethereum (Ethereum 2.33%) It has risen 8.3% since Friday's market close. near protocol (near 8.99%) It rose 21.3% on Monday. coinbase (coin 16.84%) It rose by 16.9%.bitcoin miner marathon digital and riot platform They were up 21.7% and 17%, respectively, as of today's close. This is momentum that's been building for a while, and for some, it's likely to continue.
Ethereum will be upgraded
The Ethereum blockchain will receive an upgrade called Dencun in mid-March that is expected to increase the blockchain's throughput and reduce costs. This could make blockchain more practically usable, which has always been the promise of cryptocurrencies.
Grayscale, a digital currency asset management firm that owns multiple crypto funds, touts this upgrade as a long-term catalyst for Ethereum. They also think it could be approved as an exchange-traded fund (ETF) next.
Near Protocol has similarly risen significantly, but this is largely due to tracking the bullish movement of the industry as a whole. There was no concrete news. Speculation almost rose today.
miner shines
It's no surprise that rising Bitcoin prices led to a surge in Bitcoin mining stocks. These companies not only generate revenue from Bitcoin mining, but also have increased revenue and gross margins similar to Bitcoin, but they also hold Bitcoin on their balance sheets. This gives them 2x leverage when the price of Bitcoin rises. This is what we are seeing today.
Coinbase rides the tide
Riding the wave of cryptocurrency momentum is Coinbase, an exchange and cryptocurrency infrastructure company. While trading is a big part of his Coinbase business, it also signals increased activity on the blockchain by developers and, in some cases, financial institutions.
The advantage is that products such as wallets, Base blockchain, cloud tools, and commerce applications can run on Coinbase. That's what the company's service offerings are all about, and why it has the potential to be a disruptive company in the long run.
The end of virtual currency winter
Over the past six months, it has become clear that the crypto winter may be over. There is more trading volume, higher valuations, and more industry development and investment than before the last bull market. This could lead to more activity on the blockchain, even if the value generated is not evenly distributed.
Blockchain, which can provide real utility through smart contracts, fast transactions, and low costs, has the potential to be a value-adding and disruptive technology. That's why Ethereum upgrades are so important as developers explore more use cases.
I think the best way to invest in cryptocurrency recovery is through Coinbase, regardless of what blockchain your activity goes to. It could outperform all of its crypto rivals by 2024.
Travis Hoium has positions in Coinbase Global and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
