FOMO remains alive in the crypto world, with lesser-known tokens outperforming again in the wake of recent rallies staged by industry leaders Bitcoin and Ether.
Cardano has doubled this month, becoming the third-largest digital asset. Binance Coin is also up. A token named Avalanche has tripled in August. Meanwhile, prices for digital photos of rocks with laser eyes and cartoon depictions of animals are going nuts, sometimes quadrupling in a matter of days.
Since July, assets under management for digital-asset investment products rose more than 57% to roughly $55 billion. Average daily aggregate trading volumes increased more than 46% to $544 million, the biggest month-over-month rise since May.
There is little consensus as to what's driving the frenzy. Some say that speculators are moving away from boomer stocks to more exciting offshoots. Others see a world awash in cash and ultra-low interest rates, which pushes investors to assets such as JPEGs of rocks.
Young investors are especially more bullish on crypto than the boomers. A recent survey by eToro found that roughly a quarter of the 6,000 investors queried own crypto, a number that increases to nearly 50% for the younger cohort.
Short Squeez Takeaway: It is a great time to be an investor in just about anything at the moment. US equity markets seem to post records daily. NFTs have helped lead the crypto revival after the crash in May. One thing is for sure, the next crypto crash is around the corner, so maybe think twice before you decide to buy a rock JPEG.