Even though Bitcoin is still the largest cryptocurreny globally, many altcoins are giving far better returns in the short term. One such coin is the BitTorrent token (BTT) that has surged by over 75% in just a day. And in the past few days, the price has more than doubled. So, the question has to be asked that Should you invest in it now? Note that this is not investment advice, but we are going to take an unbiased approach to the question.
BTT price surge! Why?
The price increase of any coin or stock is backed by one of the two things: hype or fundamentals. Considering that the price of BTT has been continuously increasing (10 times in 2 months), and it has even crossed the $5 billion market cap, the reason behind the rally has to be strong. Analysis suggests that there is no clear fundamental backing for the price increase of BTT. The huge rally seems to be a big momentum that has spiked the price so drastically in a few months.
The price increase of BTT has also led to huge volumes that have also garnered a lot of attention in the crypto community. There are also a few other factors that could have increased the price of BTT. One such factor is the staking offers that the Poloniex exchange is offering. It tweeted a while back that they will be providing great rewards to those who stake on some particular coins. This could have brought in serious traffic on their site and increase the price of BTT.
For those who don’t know, staking is a process in which you put money into a coin and get rewards for your investment apart from the normal gains or losses resulting from the price changes. Another important reason could be its association with TRON. The ecosystem of Tron is very famous for NFTs, and the popularity of NFts is increasing, so is the price of Tron and subsequently BTT. But this is just speculation. The fact that BTT is related to Tron also makes the future of BTT quite limited.
No Social Media effect?
It would be wrong to say that social media had no role in the price increase of BTT. This is because the social media engagement of BitTorrent Token has increased by 377% since March 30, that is, before the rally. Such kind of engagement does bring its benefits along with it. But still, the breakout could be seen from a technical angle as all the altcoins, and even BTC, is doing pretty well for over 10 days now. As the price of altcoins continues to rise, we are going to see an even lesser market dependence on BTC. All this added, it does seem to be a good investment to me.
What are your thoughts on the huge price increase of BitTorrent Token (BTT)? And do you think that the rally will continue? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.