In 2024, hundreds of billions of dollars have flowed into the cryptocurrency markets, driving the digital asset industry to grow by over 44% year-to-date (YTD). There is potential for the industry to surpass the $3 trillion peak set in 2021. The booming crypto market has attracted enthusiastic investors and traders eager to capitalize on the fast-paced market.
Interest in assets with small to mid-market caps has also increased, with tokens like Render and Fetch.ai experiencing significant surges of 48% and 113% YTD, respectively. These tokens have likely benefited from the attention surrounding GPU giant Nvidia and the growing interest in artificial intelligence, as investors seek web3 alternatives to traditional stakeholders. At the time of this writing, RNDR had a $2.5 billion market cap, while FET had a $3.6 billion valuation.
CoinLedger researchers noted that the rally in the cryptocurrency market in early 2024 likely prompted many investors to realize profits and sell some of their major holdings. This trend is especially evident in the case of Bitcoin, which achieved a new all-time high in March, and Ethereum, which has come close to its previous highs. It is common for investors to book profits in these scenarios.
Additionally, there is a possibility that most of the selloff of SOL is attributable to memecoin traders and meme swaps. As the market continues to show significant growth and fluctuations, it is crucial for investors to carefully consider their strategies and make informed decisions.
