After weeks of waking up to the same news of cryptocurrencies continuing to fall, there seems to be a bit of hope on the horizon. There has been a bit of stability witnessed in the crypto market over the past few days, with the bigger players starting to show signs of improvement.
Whether it is just a fluke, as some industry experts seem to think, or it is the long-awaited sign of recovery, is yet to be determined. What is clear is that there is a definite change in attitude among crypto investors, as seen by the recent surge in investments across the board.
The reason for this latest improvement should not be attributed to crypto alone, as there has been a global effort in recent weeks to deal with the runaway inflation amid fears of an approaching economic crisis. Governments have rallied together to come up with solutions, and the results, thus far, look promising.
In Asia, for example, there has been a significant improvement in the stock market. Hong Kong’s Hang Seng rose by 2.09%, while the Shanghai Composite and India’s Sensex finished trading at a 0.89% increase. These promising figures were mirrored in Europe and the US as well, with Stoxx Europe 600 seeing a 1.49% hike, and US futures gaining 0.5% respectively.
XRP and Bitcoin Lead the Way
As usual, it is the bigger currencies that have taken full advantage of this general improvement in global markets. The most impressive market performance came from XRP, which saw a massive 16% increase in trading over the last 24 hours.
Not to be outdone, Bitcoin investors had something to cheer about finally, as the currency rose above the $21,000 glass ceiling for the first time in months, which is definitely good news after it had dropped to $18,000 just a week ago. Analysts are now predicting that after rising above $21,000, this momentum is likely to carry Bitcoin all the way up to $22,600 over the next few days.
Other smaller currencies have also reaped the benefits of the latest surge in investor confidence. The developers of Solana’s SOL token showed nerves of steel by announcing their latest tech offering amid such industry turmoil. They presented their new Solana mobile phone in New York yesterday, and the result of this risky move was that the value of SOL rose by 8% in just 24 hours.
It seemed investors now prefer to rally behind currencies that have genuine technological offerings, as opposed to the blind investment patterns that likely contributed to the current crisis. More evidence of this was seen in an 8% rise in the value of Avalanche’s AVAX token soon after the company announced its new native bridge to the Bitcoin network. Polygon’s MATIC was another winner when it witnessed a fantastic 17% boost on Thursday.
Binance May Have the Answer
While the rest of the crypto industry has seen massive lay-offs of employees, it seems Binance, the world’s largest crypto exchange platform, has been immune to the crypto crash. Far from laying-off employees, Binance has actually been on a hiring spree!
Binance’s CEO, Changpeng Zhao, seems to know something everyone else doesn’t. The latest Binance strategy, according to Zhao, seems to be centered on bailout projects for sinking cryptocurrencies. The same strategy has been used successfully, by another big name in crypto exchange platforms, FTX, when it bailed out BlockFi at a time when the company was facing certain bankruptcy.
Doing so in such an uncertain climate is no doubt very risky because any further demise in crypto stock would leave Binance very exposed. However, should the exchange platform manage to pick the right candidates for a bailout, and should the crypto recovery continue, then Binance could come out of this with sizeable profits, further solidifying its position as the number one exchange platform on the market.
Risk has always been a major part of being an investor, and this is something that has always been stressed when investing in the crypto market. When Bitcoin was trading at $3,000 years ago, no one could have guessed that it would be at $21,000 today. Even though the outlook is dire at the moment, no one knows what tomorrow will bring.
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