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Cryptocurrencies have been a basic food in the financial world for several years now. However, the market has also experienced its fair share of pump and discharge scams, high fees and other problems that can affect investors. In this article, we will immerse ourselves in the current state of cryptocurrency trends, the feeling of the market, pump and discharge patterns and transaction costs.
Crypto-monnaies trends
The cryptocurrency market has experienced significant growth in recent years. Bitcoin, the first and the largest cryptocurrency by market capitalization, saw its price from $ 10 to more than $ 40,000 in a few months. This rapid growth has led to an increase in interest between investors and new participants.
However, not all cryptocurrencies are created equal. Some have experienced significant price oscillations due to pump and discharge patterns, while others had trouble gaining ground. Ethereum, for example, has seen its price fluctuate enormously over the years, with a few growth periods followed by strong drops.
Market feeling
The feeling of the cryptocurrency market is a complex subject. Although many investors are optimistic about the future of cryptocurrencies, there are also many pessimists who believe that the market is due to a slowdown.
According to CoinmarketCap data, the overall feeling of bitcoin has been neutral or negative in recent months. However, some cryptocurrencies have experienced a significant change in feeling in recent weeks. For example, Altcoin prices such as Cardano (ADA) and Stellar (XLM) have experienced net price jumps, suggesting that investors become more optimistic about these assets.
Pump and discharges scams
Pump and discharge patterns are a type of market manipulation where an individual or group artificially inflates the price of a cryptocurrency by disseminating false information or making exaggerated affirmations on its potential. This can lead to an increase in cryptocurrency demand, which increases the price.
Pumping and discharge scams have been a problem in the cryptocurrency space since the first days of Bitcoin. However, they become more and more sophisticated as individuals and groups seek to manipulate market prices.
According to Coindesk data, there were more than 100 pump and discharge patterns known in the Bitcoin alone between 2016 and 2020. These regimes led to significant losses for investors who dropped for them.
Transaction costs
Transaction costs are another significant consideration with regard to trading of cryptocurrencies. While some cryptocurrencies like Ethereum offer low transaction costs, others charge much more.
For example, Bitcoin transaction costs can reach $ 50 per block, although these costs have been relatively stable in recent months. Other cryptocurrencies such as Monero and Dogecoin also charge higher transaction costs than their peers.
Transaction costs: an increasing concern
The growing use of cryptocurrency for payments has led to an increase in transaction costs. While some investors see this as an opportunity to save money on the costs, others are dissuaded by high costs.
According to Coindesk data, the means of transaction costs have increased considerably in the past year. For example, average transaction costs on Ethereum increased from around $ 2 per block in January 2020 to more than $ 40 per block in February 2023.
Conclusion
The trends in cryptocurrencies are complex and multiple. While some assets like Bitcoin have experienced significant growth in recent years, others have struggled to gain ground. The feeling of the market is also a critical factor, many investors becoming more and more pessimistic about the management of the market.