Users Are Flocking To Crypto With More Unique Addresses Daily – Mass Adoption On The Way?

The cryptocurrency market has experienced a significant rebound this month. Many cryptocurrencies have gained in value, with some even making new all-time highs. One of the unique factors about the current bullish rally is that buying pressure has been a key driver of the price action. Furthermore, new addresses are joining the crypto sector daily, fuelling speculations of mass adoption.

This year has been one of the best for cryptocurrencies, and even with the massive crash that happened in May, it seems that investors have not feared the volatility. More people are accumulating crypto holdings to leverage the current bullish rally. Most of the new addresses were left out during the April bull run, and hence want to speculate that another major bullish rally will commence.

Growing Mass Adoption

The current bullish rally has evolved from mere speculation by short-term traders. Besides, some altcoins have made massive gains despite slight pullbacks in the market, indicating that buyers are still accumulating their holdings on specific coins even with a lack of market support.

Blockchain activity has a role to play in the current rise in crypto adoption. Most blockchains have evolved to become major hubs for decentralized finance (DeFi). The DeFi sector is a rapidly growing sector, with its growth attracting the attention of Gary Gensler, Chief of the US Securities and Exchange Commission (SEC). Many blockchains are now leaning towards DeFi, which is influencing the price rally.

The growing mass adoption has also been influenced by interest from institutions. During the first quarter of 2021, when the bullish rally was at its peak, institutions flocked into the sector because of growing customer demand. Despite the volatility that led to a major crash in May, some major institutional players such as PayPal have not backed away.

After launching cryptocurrency services in the US in Q1 2021, PayPal recently extended the same services in the UK. The recent announcement by PayPal has many new investors going bullish on cryptocurrencies, with expectations that another major bullish rally will resume.

The recent mass adoption has also been influenced by speculation. When the crypto market rallied to new heights at the beginning of this year, many new investors who were yet to invest in the sector felt left out. Prices skyrocketed to high levels that were too risky for those who wanted to enter the market. However, the recent rally has new investors jumping in to ensure they are not left out.

Some new investors who entered as soon as the rebound started in late July have already made incredible gains. Coins such as Solana and Cardano have made new all-time highs, and those who invested here are reaping big. Besides, BTC has almost managed to retest $50K, thus creating profitability for those who invested during this period.

Evolving Crypto Regulations Have a Role to Play

The recent crypto adoption by new investors has also been influenced by an evolving regulatory landscape. Various regulatory bodies have put up regulations in place to protect investors and promote a safe crypto environment. This has changed an earlier notion of cryptocurrencies being used for criminal activities such as money laundering.

In the US, Congress has been pushing for the SEC and the Commodities Futures and Trading Commission (CFTC) to formulate a clear regulatory framework that will govern crypto investments. This recognition has stirred more confidence in new investors who want to invest in this sector but fail to do so because of a lack of recognition by lawmakers.

Some countries are steps ahead of the US in terms of crypto regulations. In El Salvador, a Bitcoin law was passed where BTC would be accepted as legal tender. Other countries such as Iran, Argentina, and Venezuela have also accepted BTC as a medium of exchange to aid their ailing economies. Such news has also had a role to play in boosting crypto adoption.

A favorable regulatory framework has also enabled cryptocurrencies to become more mainstream. People who were unsure what cryptocurrencies are and how to invest in this market have learned a lot in the past year. Besides, cryptocurrencies have also evolved from being used for mere speculation and can be used for buying and selling products and services, hence the growing number of unique crypto addresses.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

UAE Youngsters To Get Crypto And Blockchain Internships

Web3 Internship for Emirati HighSchoolersAccording to a report by The National, Crimson Education is providing training for Emirati pupils between 13 and 20 years of age in crypto and AI, in order to equip them for employment in emerging technology at multinational firms. Crimson Education...
Read More

Opera Goes Into Web3 By Integrating 8 Blockchain Ecosystems

Opera has a great track record keeping users happy by filling its browser with highly useful tools and security features. Opera was the first to integrate VPN, followed by a crypto wallet, and now, Opera integrates eight different blockchain ecosystems. This innovative company strives to...
Total
0
Share