Top Tier Cryptocurrency Review: Upward Trends In Theta And Filecoin

This article was written exclusively for Investing.com

  • Bitcoin and Ethereum are restless near the highs
  • Theta: Top 15 member of the asset class
  • Filecoin: in the top 20
  • Increasing market capitalizations form a critical mass for the future
  • Look for diamonds in the rough in the cryptopatch

The cryptocurrency asset class remains one of the most exciting market sectors of 2021. It’s hard to believe that its market leader traded below 10 cents eleven years ago. The recent high for the token at $ 62,080 is why many investors are looking for the next explosive coin. The chance to convert a $ 1 investment into over $ 1 million in 2021 late last week with Bitcoin north of $ 59,000 is a lottery ticket.

The unprecedented surge in many digital currencies could mean that the low hanging fruit has already disappeared from the trees. However, some asset class believers believe that price appreciation still has a long way to go.

Homework is required to find value in the industry. In order for today’s bargains to become tomorrow’s superstars, they need liquidity to build the critical mass for success. and are two tokens that are at the top level of the asset class. You have already established some basic requirements for future success and higher values.

Bitcoin and Ethereum are restless near the highs

March was a troubled month on the futures markets. Bitcoin hit a new record high on March 15th.

Source: CQG

The graph shows the move to a high of $ 62,080 in mid-March and a decline to $ 50,595 ten days later. Bitcoin corrected 18.5% from the high. The price was back at the $ 60,000 level on the last day of March.

While Bitcoin hit a new high, Ethereum futures rose to a lower high in March after starting trading on February 8th. The introduction of futures brought the price of the second largest cryptocurrency to over $ 2,000 in February.

Ether Futures Daily

Source: CQG

In March, Ethereum hit a high of $ 1954.25 on March 15 and fell 19.7% to $ 1570 on March 25. Ethereum hit a new high of $ 2,185.50 on April 6th.

The total market capitalization of the digital currency market of 9,162 tokens was just above the $ 1.9 trillion level at the end of the first quarter of 2021. Market capitalization surged above $ 1 trillion for the first time in 2021.

Bitcoin and Ethereum hold a dominant 67.9% share of total market capitalization. However, the percentage has gone down, meaning the other 9,160 tokens are appreciating in value faster than the top performers.

Many of the tokens are nothing more than risky lottery tickets with low return opportunities, as the world has no room for 9,162 liquid currency instruments. However, the top-rated digital coins with market cap and liquidity have the best chance of survival.

Bitcoin and Ethereum are large-cap coins. The mid-caps are valued between $ 10 billion and $ 60 billion. As of March 31, there were only thirteen mid-caps. Theta (THETA) and Filecoin (FIL) are mid-cap tokens for digital currencies.

Theta: Top 15 member of the asset class

On April 7th, theta was the eleventh largest cryptocurrency. Theta’s website describes the token as a decentralized video delivery network and cryptocurrency. The platform offers technical and financial solutions to problems in the streaming sector.

Theta’s blockchain provides incentives for sharing bandwidth across the network. Theta users can dedicate excess bandwidth and computing resources to the theta cryptocurrency. Users can take advantage of the Ethereum ecosystem.

As of April 7, Theta’s market cap was $ 12.318 billion and its price was $ 12.31.

THETA diagram

Source: CoinMarketCap

The graph shows the token’s range since 2018, from under 10 cents to a high of USD 13.25. It was near the high on March 31, and hit a record high on April 7, 2021.

Theta has moved up the digital currency hierarchy as the token outperformed many of the other 9,161+ cryptos.

Filecoin: in the top 20

Filecoin is an open source public cryptocurrency and digital payments system that is a blockchain-based, collaborative digital storage and data retrieval method. Protocol Labs created Filecoin and is building critical mass on top of the InterPlanetary File System (IPFS) so that users can rent unused disk space. Filecoin specifications provide transparency for the cryptocurrency.

As of April 7, Filecoin was the fifteenth leading digital currency with a market cap of $ 10.032 billion at $ 153.80 per token.

Filecoin chart

Source: CoinMarketCap

The graph shows the range from just over $ 20 to over $ 195 since October 2020 when FIL started trading.

Increasing market capitalizations form a critical mass for the future

Theta and Filecoin trends are bullish. The value of the tokens, their market capitalization and their rank in the asset class have increased. Filecoin was below $ 24 per token in early February 2021. The price was more than six times higher on April 7th. Theta was below $ 1 at the end of 2020 and has seen explosive growth in recent months.

The rapid movements in the top mid-cap cryptocurrencies and market capitalizations below $ 12.4 billion led to strong bullish trends. The trend is always your friend in the markets, but the risk of corrections increases with prices.

Theta and Filecoin achieved very good results in building critical mass in the first quarter of 2021. The coming months will show whether the tokens can maintain the current rate of growth.

Look for diamonds in the rough in the cryptopatch

I see the digital currency asset class as a field full of diamonds and land mines. With the thousands of tokens circulating in cyberspace, many are little more than landmines that will never reach the critical mass necessary to generate returns for investors and could ultimately lead to extinction.

Bitcoin’s rise also means that percentage gains will decline even if the asset class leader continues to move higher. In the meantime, the emerging cryptos have the potential to generate exciting exponential returns.

When looking for diamonds in the asset class, liquidity is of the essence. Look for tokens with bullish trends in price and market valuations that are growing in importance in the market hierarchy. Theta and Filecoin qualify as two cryptos that have been diamonds in the past few months.

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