The crypto market got a little crazy this week. Bitcoin (Cryptocurrency: BTC) It surpassed $70,000 for the first time, with hundreds of millions of dollars flowing into Bitcoin ETFs. Almost all altcoins followed suit with significant gains, as did publicly traded crypto companies.
coinbase (NASDAQ:Coin) It was the biggest winner in the stock market, gaining 31.5% this week and gaining 24.7%, according to data provided by S&P Global Market Intelligence. On the cryptocurrency side, Solana (Code: SOL) Up 16.6% from last Friday. near protocol (Crypto: Close) At its peak, it rose 43.9%. As of market close on Wall Street, the tokens were up 12.6% and 40.3%, respectively.
Coinbase is this week's big winner
One company that is currently on the lookout for almost every trend in cryptocurrencies is Coinbase. The exchange has seen an explosion in demand in recent weeks as trading volumes increase, and it is also the custodian of most of the Bitcoin ETFs currently available.
Coinbase recently announced a nearly 50% increase in revenue and positive operating cash flow for the fourth quarter of 2023. This is before the crypto skyrocket in 2024, so sales and profits will likely be on a positive trajectory this year.
The great thing about Coinbase is that it has exposure to almost every part of the crypto market. Trading, ETFs, stablecoins, and even blockchain projects use Coinbase's infrastructure. This could be a big year for Coinbase's business, and its stock price is rising rapidly.
Virtual currency follows Bitcoin
It's not unusual for altcoins to follow Bitcoin's movements, but this week saw some of the most popular tokens rally significantly. Solana and Near Protocol benefit from the possibility that Bitcoin's ETF success will eventually lead to more ETFs in the industry.
Solana also got some positive news when Bloomberg reported that cryptocurrency fund Pantera is looking to raise hundreds of millions of dollars to buy discounted Solana tokens from FTX Real Estate. The tokens will be sold at a discount, potentially eliminating one of the biggest overhangs for Solana over the past two years.
One of the reasons for Near Protocol's rise is because Binance The company announced that it will be added as a loan to its lending department. This can add leverage to trading tokens, which can be positive in strong markets, but can also lead to increased downside volatility.
Rising trend of cryptocurrencies
There are not many fundamental changes in the cryptocurrency market that will increase its value, but rather an industry-wide upward trend. For tokens like Solana, losses in 2022 have been almost completely wiped out by recent gains.
Keep in mind that while the current move is strong, some of it is driven by increased leverage within the system. Lending protocols are being adopted more and more derivatives are being used around the world. As we saw this week, that can lead to an increase in value, but things can change quickly in the crypto industry when a crash occurs.
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Travis Hoium has positions in Coinbase Global and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Solana. The Motley Fool has a disclosure policy.
Why Coinbase, Solana, and Near Protocol made big gains this week was originally published by The Motley Fool
